starting up in business
The decision to start your own business may be one of the biggest and most stressful decisions of your life.
Not only do you need an idea or a product for your new venture and the ability to see it through, you also need to know whether it is a financially sound proposition.
BLBS, along with the prospective new business, can evaluate the idea and turn it into a viable business plan based on factual information. This can then be used as a benchmark of anticipated performance and a guide to the minimum achievements required. The plan can be periodically updated which would give the current actual performance set against the budgeted performance, allowing future projected variations to be identified which will ensure targeted results.
BLBS will help you decide under which format you should trade, whether it be as a limited company, partnership or sole trader. Each will have it's own benefits depending on your desire for limited liability, personal tax rates, profitability and the level of finance borrowed for the business.
Once the business plan has been formulated, BLBS can assist in the approval of bank and other financial institutions regarding the facilities necessary to get under way. This will include any interpretation of the business plan that is required.
BLBS can assist in the development of your record keeping system and set up your book-keeping and accountancy requirements at start up. This is covered in other sections of this brochure.
The legal need to register for VAT will depend on the turnover. In many cases it could be beneficial to register your business for VAT even if you fall below the current threshold. In other cases it could be appropriate not to register for VAT. BLBS can advise on this important area and assist in the completion of the necessary VAT registration documentation.
If you decide to trade as a self employed person, you will have to pay class 4 national insurance along with your income tax, based on a percentage of your net profits, along with class 2 national insurance at a weekly rate and if you employ other people, you will also have NIC liability relating to your employee’s.
Limited companies pay national insurance under the P.A.Y.E. scheme on employees salaries or fees, such payments will be deducted at source. Along with personal national insurance contributions deducted from employee’s salary, employer's national insurance contributions will also have to be taken into account.
BLBS will advise on NIC mitigation, threshold for employee’s earnings, self employed sole trader drawings and arrange all documentation regarding PAYE on your behalf.
Another item, which must be considered, is the provision of insurance cover to protect you, your company and it's employees. BLBS has contacts within the insurance industry who, along with BLBS, will evaluate and report on the required legal obligations of insurance cover and advise accordingly.
The initial planning and financial controls for a new business venture are of vital importance and it is essential to have a pragmatic approach to the future planning and running of the new business.
Any new business which uses our services can be assured that they will receive, not only detailed business plans and relevant documentation, but also the total support, commitment and back-up of BLBS who will always be available to assist with their new venture.
