Getting over the challenges of starting a new business
Starting a new business or expanding an existing one can be a very time consuming process.
And important accounting, taxation and administrative processes can often be delayed in favour of dealing with the day to day operation of the business.
This can have implications and it is therefore important to set time aside to plan and deal with these aspects of the business.
A business plan will help to assess the viability of the business and is essential when applying for funding. The level, source and repayment terms of the funding required by the business should be given careful consideration as this will impact on the tax treatment, cash flow position and credit rating of the business.
The structure adopted by the business should be considered and reviewed on a regular basis to ensure that it remains appropriate. Factors that may affect the choice of business structure include anticipated profit levels, tax efficiency, control, level of flexibility regarding withdrawal or retention of profits, sources of funding, third party requirements, limitation of liability, future plans for the business and changes in tax legislation.
If not already registered, it will be necessary to register with HM Revenue & Customs for Income Tax or Corporation Tax purposes as appropriate. It may also be necessary to register for VAT, PAYE and a workplace pension scheme. Limited Companies and Limited Liability Partnerships are required to register their formation with Companies House.
Appropriate accounting and bookkeeping procedures should be adopted and various accounting products are available to assist with this.
Starting in April, Rennie Welch LLP will be hosting a series of regular events in Kelso, Berwick and Melrose aimed at new and growing businesses. The events will provide an overview of a wide range of issues affecting new and growing businesses such as business structure, administration, accounting and taxation. There will also be guest speakers on hand to provide an insight into related issues such as banking, funding and legal issues. The events are free but places are limited and advance booking is recommended. The first event takes place at the Kelso office on Thursday April 14 at 5.30pm. If you are interested in attending any of these events please contact Lynn Miller for more information either by email at [email protected] or by telephone on 01573 224 391. Alternatively attendance can be registered online at www.renniewelch.co.uk/news/events.