If you want to start working 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.
a) A self-employed person:
- Runs own business and decides about the type and time of its work/decides what fees to charge
- Bears responsibility for the success or failure of the business
- Has more than one customer at the same time
- Can employ/hire people
- Takes care of the main equipment/stock needed to perform business activities
b) An employed person:
- Has to perform the tasks imposed on their own
- Is told how, where and when to do your work
- Works within fixed hours
- Work for just one person at a time
- is not in charge of the business nor takes responsibility for it, that is the employer's task
- is paid a regular wage or salary
As we are regulated by a professional body, AAT, and HMRC, we comply with certain standards and have undertaken a rigorous training programme to achieve our accountancy qualifications. Heathland Accountancy knows what we are doing and has the best experience and training to provide the best accountancy and business advice. When you use someone who isn't qualified, you take a risk and it can prove to be expensive in the long term.
We regularly maintain our CPD (Continuing Professional Development) and it is a requirement of our regulatory body, the AAT, for us to do this.
Yes. Heathland Accountancy can do it all, including bookkeeping, payroll, CIS, VAT returns and year-end compliance. We are also able to provide management accounts and business consultancy if this is needed.
You must register for VAT if you have exceeded or will exceed the £85K turnover threshold. You can register for VAT voluntarily below that threshold if it's of benefit to your business.
Note that you cannot register for VAT if you sell only goods or services that are exempt from VAT or you are not in business according to the HMRC's definition.
You must keep records for 6 Years in case of any HMRC investigations.
There are several accounting software sources. We can work with you and use the one with which you are comfortable. QuickBooks is very popular with our current client base.
Many businesses use accounting software on a day-to-day basis, especially since the introduction of MTD for VAT, meaning all VAT-registered businesses must keep digital records. We can advise and support you in making the right decision. Although currently not every business needs to use accounting software, many more businesses will be required to do so from April 2024 as HMRC continues the rollout of MTD to income tax and corporation taxpayers, so you may want to consider preparing for this sooner rather than later.
Many businesses now must submit their VAT returns via digital software as the HMRC portal is now closed to them. They soon will have to do so for other taxes too. As stated above, from April 2024 as HMRC continues the rollout of MTD for income tax and corporation taxpayers, you may want to consider preparing for this sooner rather than later.
No, but, 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 personal 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. Basically, if you have acted responsibly, debt can't be pursued to you personally only the company.
If you need to close your business for any reason you should plan it carefully. Firstly, you must inform HMRC of your plans and Companies House if Limited. Only then will you be able to settle matters related to tax and National Insurance. In some circumstances, it is possible to extend the deadlines for payments or even to gain a tax or National Insurance rebate.
