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.
