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. We can process Monthly payroll or 4-weekly payroll from as little as £30.00 per run for a fully managed service including the annual returns, leavers and joiners.
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 .......
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.
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
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.
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
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
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
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
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
As of 1 April 2008, the level of taxable turnover at which a business is
required to register for VAT is £67,000. The thresholds are 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 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.
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
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 21/04/2008
