HAZARDS TO AVOID WHEN STARTING A NEW BUSINESS
In one of our previous blogs, we talked about our top tips for new business start-ups, which provides you with all the valuable information, whether you’re an experienced entrepreneur or completely new to the start-up scene.
In this post, Your Tax Shop want to take it a step further and focus on the hazards you’ll need to avoid to help your start-up business flourish during the initial ‘growing pains’ phase.
Avoid mixing your business and personal expenses
If you tend to mix all of your expenses, business and personal, together in a big box and throw them to one side, then it becomes far more difficult to keep a track of them all and know where you’re up to. This can lead to you missing out on money that you could have otherwise claimed back and offset against your profits.
Mixing business and personal expenditure can also land you in trouble with HM Revenue and Customs (HMRC).
Keeping an organised and up-to-date record of all your records is vital!
Choose the correct and appropriate business structure
Depending on the size of your start-up, you can choose to set up as a sole-trader, partnership or register a limited company. The system and structure which you choose will define the paperwork you’ll have to complete upon starting your business, the taxes you’ll be liable to pay, the way in which profit can be taken out of your business, and your personal responsibilities as the owner.
Take advantage of tax reliefs and other incentives available
You should always look into and apply for the tax relief benefits and incentives which are available to you, as this could be a big help. Discuss with your accountant and see if any tax reliefs are applicable to you. Alternatively, contact Your Tax Shop and we’ll be able to help Make Tax Easy to understand and possibly save you money!
Get help from an accountant who are experienced with start-ups
Errors on tax returns, frequent mistakes on VAT returns, and years of making a loss are just some of the reasons why HMRC may seek a tax investigation against you and your business. Running a business without having a qualified accountant on board to help keep you up to date with the ever-changing tax rules and keeping your books balanced may also have a negative effect on your business. Getting the right help from a reliable accountant may end up saving you more time and money.
Your Tax Shop are dedicated to helping you take the jump when it comes to new business start-ups and are on hand to guide you every step of the way. If you would like to discuss your different options, or maybe have a question that’s been troubling you, then get in touch with our team today on 0161 339 5689 or book an appointment – it really is just as simple as that!