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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.


Paying Employees

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.

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,  Student Loans , UK Pensions , P35 year end returns Attachment of earnings, National Minimum Wage monitoring, manual tax calculations and so on .......

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Pension

If you employ five people or more, you must provide access to a Stakeholder Pension unless you provide an alternative pension scheme. If your are a NHS surgery, staff are deemed to have joined the scheme unless they complete an SD502 opting out form which we administer on your behalf.

NHS New EA Codes Registrations
If you are starting a new NHS surgery, we will register your surgery with the NHS Pension Agency obtaining a new GP Reference for NHS Pension purposes. If your surgery employers salaried GPs, their pension is paid via your PCT.

As the employer, it is essential you will need to keep appropriate records paid to your scheme provider for 7 years.

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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 6363

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. 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

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Setting Up A New PAYE Scheme

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:-

  • The company's Registered Office, Company Registration Number and the date of incorporation.
  • The names, addresses, private telephone numbers and National Insurance numbers of the company directors/partners
  • Date of Incorporation if a Limited Company
  • Brief description of the business
  • Registered office address
  • Trading address

The  new PAYE and accounts reference number will be sent to your company. These numbers identifies your company's payroll account with the Revennue  for annual returns and Tax/\NI payments.

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

All applications received are subject to registration with The Revenue PAYE department.  If you do not have a PAYE ref, this can be submitted here.Read more ... 

 

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Setting Up A New Partnership

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 
 

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Setting Up As A Sole Trader

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   

Read more ... 

 

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Setting Up A New Franchise

To 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   

Read more ... 

 

Legislation

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

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Registering For VAT

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, Application form is available to download from HMRC website here>.

Registration thresholds
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 2008. If your turnover is going to be more than the current VAT threshold, 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.

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Financial

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

Read more ... 

 

Useful Contacts

   

 

Visit our invaluable Useful contacts links page. You can save this page as your favourites to automatically refer to at any time.
 


 

This page was last updated 26/01/2010


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