So, you know all you need to know about registering your business, but when should you make it official?
- Sole Traders
- A sole trader must register with HMRC. Again, this should be done before you start any trading activity.
- Limited companies
- Limited Companies and Limited
Liability Partnerships must register with Companies House to be incorporated.
This should be done before you start any trading activity.
- Limited Companies and Limited Liability Partnerships must register with Companies House to be incorporated. This should be done before you start any trading activity.
You may find that some suppliers will not work with you unless you can prove you’re a registered business. This may prompt you to register sooner rather than later.
When you’ll pay VAT
If your annual turnover is over £83,000 you must register for VAT. If it is under £83,000 you can volunteer to register for VAT.
We’re not touching on the details of VAT this time, that’s a subject for another post.
Don’t let registering your business raise the anxiety levels. Government agents armed with tax bills won’t be ambushing you as you leave the house in the morning.
HMRC and Companies House are concerned with businesses that don’t declare anything. As long as you declare everything honestly, even if it’s zero, you’ll be fine.
Usually, the registration process is easy and can be done online. However, if you’re having trouble, the Enterprise Steps team are happy to help. Alternatively, you can seek the advice of an accountant who can register the business for you.
It’s free to register as a sole trader and it costs £12 for a limited company. The £12 can be paid by debit or credit card or PayPal account.
If you have a question that you need answering right away, our dedicated business advisors are on hand to help. Contact us today, and we’ll get back to you as soon as we can.