Is 2022 the year you are planning to start your own business? If it is then we want to offer some advice to help you get started smoothly. It’s a very exciting time and if you can get some of the basics right from the start then you can reduce the challenges that may occur further down the line.

Our top tips are based on years of experience working with start-up businesses and will hopefully kickstart your journey.

Find a good accountant

The important part of finding a good accountant is finding someone that will take the time to help you through these early stages. If you have always been employed it’s hard to ask the right questions, because it will be so new to you. A good accountant will not only find out about your business they will look at it in relation to your personal circumstances. This can help when you are trying to decide on the company structure and financial planning. Most people think accountants are just there for the annual tax return. There is so much more than an accountant can help you with at the start of your business as well as advising you on an ongoing basis.

Decide on your company structure

You need to decide early on if you want to trade as a Limited Company, Partnership or Sole Trader. There are lots of pros and cons for each type of company structure. Your accountant can discuss this with you. We will share information about this next month. But in the meantime, here is a quick summary of each:

• Limited Company – This is one of the most popular choices because it can provide clarity and protection that other legal entities may not. Personal liability is minimised, and it may be more tax-efficient.
• Partnership - If you opt for a traditional partnership then both you and your partner(s) will own the business and be responsible for any liabilities that it has. You can draw up a partnership agreement to identify roles and responsibilities.
• Sole Trader – This is the simplest structure and easy to set up. You have greater privacy than incorporated companies. However, you would be personally liable for any debt in the business.

Regardless of which company structure you choose you can decide to be VAT registered or not. There is a VAT threshold set by the HMRC if you exceed this then you must be VAT registered, i.e., if your total VAT taxable turnover for the last 12 months is over £85,000. 

Register with HMRC

You need to register with the HMRC whichever company structure you choose. If you set up as a Limited Company, you must also register with Companies House. The links below take you to the GOV.UK website to register and ensure compliance.

• Set up as a self-employed (sole trader)
• Step up as a Limited Company
• Set up as a Business Partnership

We hope you found this article useful. We will share more top tips over the coming months. In the meantime, if you want some advice as you are setting up your new business then please do contact us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.