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Starting up new business requires solid planning

Starting your own business requires careful planning, research and preparation. UK Government provides all required info on its website, one can easily find information on how to set up and register a company, what steps that you will need to take to turn your ideas into a business. Just to summarise in bullet points;

1. Let HMRC know you’re becoming self-employed.
2. Decide on the best legal structure for your business.
3. Choose a business name to represent yourself.
4. Set-up a business bank account.
5. Get compliant as different types of business have some pre-requisites.
6. Start book keeping for everything or hire an accountant.
7. Sort out your work space, working from office or home.
8. Sort out insurance cover, workplace, equipment, indemnity.
9. Do some advertise and marketing to acquire business.

To elaborate on some points:
What you need to do to set up depends upon the type of business, where you work and whether you take people on to help. Most businesses register as a sole trader, limited company or partnership. It’s simpler to set up as a sole trader, but you’re personally responsible for your business’s debts. You also have some accounting responsibilities.

If you form a limited company, its finances are separate from your personal finances, but there are more reporting and management responsibilities. A partnership is the simplest way for 2 or more people to run a business together. You share responsibility for your business’s debts. You also have accounting responsibilities.

If you rent or buy a property, you may have to pay business rates. Small businesses can apply for a discount on business rates and some may pay nothing. Check if you can claim office, property and equipment as expenses.

If you take on agency workers or freelancers you have some responsibilities, for example their health and safety. There are things you’ll need to do if you take on your own employees. You’ll have more responsibilities, including:
1. Running payroll
2. Paying for their National Insurance
3. Providing workplace pensions to eligible staff
4. Taking care of their health and safety.

Posted by masud

Making Tax Digital mandatory for VAT Returns

HMRC has published lots of information related to upcoming mandatory digital tax filing policy. A new HMRC VAT Notice says if you run a VAT-registered business with a taxable turnover above the VAT registration threshold you are required to keep digital VAT business records and send returns using Making Tax Digital compatible software.

The MTD pilot for VAT started in back April 2018 and is now open to VAT businesses and their agents mandated to use the service from April 2019. Joining the pilot now will help you prepare for these changes sooner and your feedback will also help to shape the service as it continues to develop.

If you have an agent, you should speak to them to find out when it may be best for you to join the pilot. It’s important that you have the appropriate software package, so if you already use accounting or record keeping software you should also speak to your software provider to find out when it will be updated for MTD.

The vast majority of businesses will need to do this for VAT periods starting on or after 1 April 2019 if your turnover exceeds £85,000. Businesses with a taxable turnover below the VAT threshold can also sign up for MTD for VAT voluntarily.

Making Tax Digital is an HMRC initiative that will revolutionise the UK tax system and ultimately bring an end to self-assessment. This new digital tax system will require the majority of business owners to maintain digital records using compatible software. Digital Brainchild can assist businesses to acquire compatible software product or set of software products that would support the MTD obligations of keeping digital records and exchanging data digitally with HMRC through the software.

Posted by masud

Social Media trends dominating in 2021

After conducting some research, I feel following  two social media trends will dominate in year 2021

Stronger connection between Brands and Consumers

The links between brands and consumers have never been so closer before, customers love sharing personal accomplishments on social media, but they also enjoy getting responses. Brands have realised the impact of social media and creating lasting relationships instead of just treating social as a platform to advertise their products. It’s absolutely essential to keep your followers happy by providing a network where they can reach you and that trend will rise in 2021.
More demand of Social Listening tools
Social listening tools allow brands to analyse and reflect on their audiences actions, plus, businesses can track overall brand health, create marketing campaigns and ultimately improve customer experiences. In year 2019, following treads will dominate

  • You have to track brand health through sentiment analysis. This helps you actively pay attention to what users say.
  • Truly engaging content is what makes any social strategy strive. So why not use listening tools to see what’s the best content to share.
  • You can identify topics of importance without the guesswork by tracking hash tags, topics or keywords people use with your brand.
  • If your social marketing campaigns are not in good mood, it’s time to seek out opportunities with the help of social listening. These features allow brands to find trends faster so they can get the most from topics or user-generated content.
  • The use of social listening tools is one trend that could push your brand in the right direction.
Posted by masud