Setting Up A New Business
This page is intended to be used as a general guide. However, you should always seek legal advice if you’re thinking about setting up and running a company. Useful information are in the booklets Working for yourself - The Guide or leaflets/se1.pdf both published by HMRC. The Business Link has also produced a start up organiser which covers all the topics discussed on this page and more. Visit http://www.businesslink.gov.uk
Use the following menu to select the type of company setup you are interested in.
Compu Paye is a small payroll bureau outsourcing service providing wages services in the UK. Our UK payroll service is tailored for all small businesses who are looking to outsource their salaries. Our PAYE service is fully managed with 24 hr access to the customer support section on our payroll services website. We can process Monthly payroll or 4-weekly payroll from as little as
£30.00 per run No job is too small and can cater from at little as 1 employee wage. If you are employing staff in the UK but don't have a UK base, we can still operate a UK payroll under the Direct Payment Scheme. You must keep records for at least six years from the end of the tax year including payroll records. See our international payroll services page.Legislation states that you must register your company with the HM Revenue & Customs for PAYE if you employ any staff or if you are a new Limited Company which have just started trading. CompuPAYE can handle your payroll requirements from as little as 1 employee. As part of our service, we will automatically set up new Pay As You Earn [PAYE] scheme with HM Revenue & Customs and deal with all your HM Revenue & Customs PAYE queries. You can download our free brochure on-line or apply now on-line to use our services today.
Our standard payroll service is suitable for most UK businesses. We also offer this small business specialist salary service to Dental Practices who employ Vocational Trainees & Hygienists. As you would expect from a fully managed UK pay roll service provider, we cover all aspects of pay administration such as Holiday Administration , Statutory Sick pay , Statutory Maternity pay including Paternity and Adoption pay, Tax Credits, Student Loans , UK Pensions , P35 year end returns Attachment of earnings, National Minimum Wage monitoring, manual tax calculations and so on .......
if you employ five people or more, you must provide access to a Stakeholder Pension unless you provide an alternative pension scheme. As the employer, it is essential you will need to keep appropriate records paid to your scheme provider for 6 years. We can store up to 7 years worth of data which if often required for pension reports, retirement, mortgage applications or other personal finance requests.
Setting
Up A New Limited Company
To form a limited company, you can buy an ‘off-the-shelf’ company or create your own new company. You must agree and register its name and address with the Registrar of Companies at
Companies House. To run your business as a company, you need to issue shares and appoint directors. For more information, contact Companies House on 0870 3333 6363Payroll is a vital part of your business. If you employ any staff, CompuPAYE help with setting up and processing your payroll. Keeping full and accurate records from the start is very important. When we set up the new PAYE scheme, we will require your company registration number.
If you are applying to register for VAT you should
download and complete the appropriate form from the VAT website , and return it with your VAT registration application form. See further notes on VAT at the end of this document.You can protect your company or trading name by registering it with Business Names Registrations Plc. This will prevent other businesses copying or "passing off" against your name and goodwill. If your tax affairs are complicated, then you will need to prepare a Self Assessment tax return. For a copy, contact the CTSA Orderline on 0845 300 6555.
Corporation tax is charged on the profits made by companies.The Business Link has also produced a start up organiser which covers all the topics discussed on this page and more. Visit http://www.businesslink.gov.uk
We can help in setting up new PAYE scheme with HM Revenue & Customs in
the UK. If you're thinking of taking somebody on or as soon as the
first employee has started your organisation, you can use our secure server to
apply now on-line and set up
new PAYE scheme simultaneously. As part of our service, we will automatically
set up new Pay As You Earn
scheme with HM Revenue & Customs and deal with all your HM Revenue & Customs
PAYE queries.
Additional information we require are:-
We will arrange for HM Revenue & Customs to send your organisation a New Employers starter pack. In it will be all the tax tables and booklets you will need for your perusal. As we will be doing all the administration, the starter pack is for you to keep for your information only.
The Government are paying small businesses up to £825 (from 2005-2009) to submit their P35 annual returns online. This is an integral part of our service.
New PAYE Scheme Application
If you decide to form a partnership, for example, setting up a Dental Practice or Doctor's Surgery with 2 or more partners, it’s important to get advice from a solicitor. They can draw you up a formal partnership agreement - called a ‘deed of partnership’. It will cover ownership of the business assets, how you will share the profits, liabilities, leases and other responsibilities. It’s important to get these sorted out at the start.
If your business is a partnership and you are applying to register for VAT you should download and complete the form below. See further notes on VAT at the end of this document.
You can protect your company or trading name by registering it with Business Names Registrations Plc. This will prevent other businesses copying or "passing off" against your name and goodwill.
Form VAT 2 - List of partners for VAT registration (40.3 KB). The Business Link has also produced a start up organiser which covers all the topics discussed on this page and more. Visit http://www.businesslink.gov.uk
If you are working for yourself as a sole trader, then you are classed as self employed. You need to register with HM Revenue & Customs for Self Assessment You can register by calling the Helpline for the Newly Self-Employed [below] or you can download the HM Revenue & Customs forms. If you are registering by phone, please have your National Insurance number ready. Keep a note of your registration details, such as the date your business started and the date you registered.. HM Revenue & Customs will send you a Self Assessment tax return at the end of the tax year in April. If you have not registered with HM Revenue & Customs within three months in which you began self employed, you could be liable for a penalty of £100.
When you are self-employed, you’re responsible for paying your own tax and National Insurance contributions. Payroll is a vital part of your business. If you employ any staff, CompuPAYE help with setting up and processing your payroll.
Keeping full and accurate records from the start is very important. After your first year in business, the tax you have to pay will be based on your profits for the previous tax year. HM Revenue & Customs will send you a tax return the following April and they will help you to calculate your tax if the Self Assessment tax return is completed before 30th September. The deadline for completing Self Assessment tax returns 31 January the following year.
You can protect your company or trading name by registering it with Business Names Registrations Plc. This will prevent other businesses copying or "passing off" against your name and goodwill. The Business Link has also produced a start up organiser which covers all the topics discussed on this page and more. Visit http://www.businesslink.gov.uk
FranchiseTo run a franchise, you must make a contract with the franchiser. You can get general advice from the British Franchise Association [below]. Your solicitor can give legal advice and help with preparing a contract and CompuPAYE can help with setting up and processing your payroll.
See further notes on VAT at the end of this document.
You can protect your company or trading name by registering it with Business Names Registrations Plc. This will prevent other businesses copying or "passing off" against your name and goodwill. The Business Link has also produced a start up organiser which covers all the topics discussed on this page and more. Visit http://www.businesslink.gov.uk
There are many things you will need to be aware of such as health & safety, Statutory sick, statutory maternity, employee rights, statutory holiday, working time regulations, minimum wages and equal opportunities. Once you become our customer, CompuPAYE can give you help and advice on these employment issues and our customer support pages will give you further information.
You will also need to consider other issues such as planning permission, payment of business rates, fire certifications, food hygiene and employment legislation and licensing laws. If you are setting up a new business or developing a new product, you should also contact Trading Standards and Business Link for free advice on relevant legal requirements and obligations.
Health &
Safety
Any employer with five or more employees must have a health and
safety policy in place which must include escape procedures in case of
fire or in the event of an emergency. All employers, including the
self-employed have duties under the Health and Safety at Work etc Act
1974, to ensure their workplace is safe. Further information is
published on
Health & Safety Executive
website and on Health & Safety Performance Indicator on the Business
Link website
http://www.businesslink.gov.uk
You MUST
register for VAT when :The value of your taxable supplies exceeds the registration threshold. There are many rules and requirements associated with VAT. If you are starting a business which at some point in the future will be dealing in a vatable commodity, you can apply for registration. This
VAT Schemes Wizard on HMRC website is designed to help you choose the best VAT scheme for your company,
Registration thresholds
As of 1 April 2006, the level of taxable turnover at
which a business is required to register for VAT increases by £1,000 to £61,000.
The level of predicted future turnover at which a business can deregister also
rises by £1,000 to £59,000. The thresholds updated every year. The most up
to-date VAT threshold is published on
http://customs.hmrc.gov.uk
Scale rate charges
If a VAT-registered trader buys road fuel which is put to
private use (by a proprietor, partner or employee), the trader
has to account for output tax on the supply of the fuel. The
fixed scale rates for this charge have been increased with
effect from the first accounting period starting on or after 1
May 2006.
If your turnover is going to be £61,000 or more, then
you need to register. if your commodity is exempt from VAT eg
Dental services, then you do not need to register.
If the value of your taxable supplies in the past 12 months or less has exceeded the current VAT registration threshold or the value of your taxable supplies in the next 30 days alone is expected to exceed this threshold, then you must register.
VAT for Dispensing GP Practices
From 1 April 2006, all dispensing doctors who wish to recover VAT incurred on
the drugs they dispense will need to register for VAT.
A free CD "Getting Started in VAT" can
be obtained from the National Advice Service. You can
email for more advice or Tel: 0845 010 9000.
Visit
http://customs.hmrc.gov.uk
If you are applying to register for VAT you should download and complete the appropriate form from the VAT website and return it with your VAT registration application form.
You will of course need to open a business bank account as it is easier to keep your personal and business finances separate. Shop around to get the best deal. Your bank manager can be of great help. Many high street banks are now providing you with free software to write your own business plan and cash flow forecasts which is important when you are setting up.
The Institute of Chartered Accountants in England & Wales [ICAIW] or The Chartered Institute Of Management Accountants [CIMA] can also provide you with a list of Accountants to help you with cash flow projections and your annual accounts.
The Business Link has also produced a start up organiser which covers all the topics discussed on this page and more. Visit http://www.businesslink.gov.uk
Visit our invaluable Useful contacts links page. You can save this page as your favourites to automatically refer to at any time.
HM Revenue &
Customs National Insurance Contributions Office, Self Employment
Services, Customer Accounts Section, Longbenton, Newcastle upon Tyne
NE98 1ZZ.
Tel: 0845 9154655.
HM Revenue & Customs Help line for the Self-Employed Tel: 08459 15 45 15
Business Link - England Tel: 08456 045678 or visit www.businessadviceonline.org Or Visit http://www.businesslink.gov.uk
British Franchise Association Tel:01491 578050
CTSA Orderline on 0845 300 6555.
Useful information are in the booklets Working for yourself - The Guide or leaflets/se1.pdf both published by HMRC.
You can also download the brochure here.
