Why should I want an accountant?

Today’s accountants aren’t simply figures people. An accountant can provide your business with the peace of mind that not only are your financial requirements being covered, but that there is wider support available for business advice and consultancy.

A good accountant will take care of your accounts but also offer advice on how to free up cashflow, make savings and raise capital for expansion. They’ll know tax laws and legislation inside and out and will be able to suggest ways that you operate more efficiently and tax savvy. A good accountant will help to free you up to concentrate on what you are good at, running your business!

I want to setup my own business as self-employed, what do I do?

If you want to start working as self-employed, you must register with HM Revenue & Customs, but first make sure you have a National Insurance Number.

After the registration, you will receive your Unique Taxpayer Reference (UTR) and HMRC will set up the right tax and National Insurance contributions records.

You should keep your UTR safe because you will need it when completing your Self Assessment tax return.

Do I have to become a company?

If you wish to trade and do not use a limited company you will be personally liable for the debt of your business. If you have assets or savings they are vulnerable to a claim made against you.

By trading through a limited company you are placing a limit on your liability. That limit is the value of the company, including any money you may have invested in, loaned to or are owing to the company.

The company has a separate legal identity from its owners and directors and unless they sign a personal guarantee for its debts they are not liable for these

What are the advantages of being a sole-trader?

Here are just a few:

There are no formation costs
Sole traders are not required by law to have annual accounts nor to file accounts for inspection. However annual accounts are necessary for tax return.

Sole traders are unrestricted in the amount and purpose of borrowings (but cannot create floating charges) – Losses generated by a sole trader can be set against other income of the year or carried back to prior years.