If you’re looking to make that leap towards being self-employed then there are a few things that you need to know before you do. Starting your own business can be a challenge, but with the right knowledge, you can make the process as simple as possible.
Register with the HMRC and for VAT
Naturally, one of the first things you’ll need to do is register with the HMRC, although you may not have to do this as quickly as you think. You have until the 5th of October in your second tax year to register. The tax year ends on the 5th April so if you start trading in June 2018, you don’t have to register until October 2019.
It is best to do this as soon as you can though, and you want to make sure that you’re paying your Class 2 National Insurance contributions as this keeps you eligible for benefits and counts towards your state pension. You will also have to register for VAT if your turnover exceeds £85,000.
Open up a new business bank account
Opening up a new business account is vital as you need to keep your personal and business finances separate. The fees aren’t that much and you’ll be able to have a clear record of what is coming in and out of your account.
This is all a part of keeping accurate records of your finances which are not only vital to proving to the HMRC how much you are earning but also vital in claiming back any expenses that you have. Keeping all your information together can be difficult, but a business bank account will make the process a lot easier.
Find an accountant
You probably have more than enough on your hands already, but trying to work out how to file all your returns yourself, and work out how to effectively claim expenses can be time-consuming. Using an accountant will take that stress away so that you know your finances are being dealt with properly.
At Highwoods & Associates, we always put your business first. We know that working for yourself can be a real challenge, but very rewarding. We also know that filing your taxes isn’t what you wanted to be doing when you decided to become self-employed.
We’d be more than happy to guide you through the process and take away the stress of dealing with your finances. Contact us today to see what we can do for you.