The Right Way To Start A Business

1. The RIGHT Way To Start A Business
This is often thought of as the boring bit. The bit that maybe we can skip over
or ignore for as long as possible. You set up a business because you love
what you do, right? Not because you want to do the boring admin parts…
Unfortunately if you skip the legalities you will only end up creating a hobby
not a business.
When you set up a business in the UK there are a couple of organisations you
need to contact. This is a must.
These are Companies House and HM Revenues and Customs (HMRC).
Before you register with these companies you first need to decide what kind of
business you are going to set up. Your options are as follows:
Self Employed – this is where you are working for yourself, and have become
your own boss. You keep the records and accounts and you get to keep all
the profits. But you are also liable for the debts.
Limited Company – These are companies in their own right, and the founders
finances are kept separate. Your liability is limited.
Partnership – This is for those who want to be self employed but work with a
friend or collegue. Two or more people share the risks, costs and workload.
Social Enterprise – This is a business that is trading for social and
environmental purposes… there are additional legal structures if you consider
going down this route… to find out more go to www.socialenterprise.org.uk

2. What About VAT?
It doesn’t matter which company status you choose you will still have to
register for VAT. In the 2015/16 tax year the VAT threshold is £82,000. VAT
registration is compulsory if your UK turnover is over and above this amount.
You may also wish to register for VAT if you think you will be going over the
threshold in a short space of time.
A common question I get is “Should I register for VAT?”
My answer is simple. If you are not registered for VAT you are sharing with
the world that your turnover is less than £82,000.
You also need to be mindful that if you are not using accountancy software
that makes VAT returns simple (like XERO for example) then you will have a
lengthy paperwork process.
Of course as you know I am not an accountant, but we have joined forces with
The WOW Company UK and will be bringing you an online programme that
will take you through the different ways to set up your business and how to
organize your accounts.
Paul Bulpitt will be delivering this programme in association with the
Corporate Escape Programme. He is the Co-Founder of The WOW Company
UK and also Head of Accounting at Xero UK.
Watch out for this in the coming months and do let us know if you would like
to be informed of its release date by emailing Steph and she can keep you
updated.
It is essential that you get the foundations right in your business, so you do
not come unstuck as you grow.
Warm regards
Amanda
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Amanda specialises in helping people stuck in the corporate jungle, escape
the cubicle and turn their passion into a full time job.
The Corporate Escape Programme is an award winning 6-month business
incubator that has helped 100’s of new and aspiring entrepreneurs transition
with ease to become Thriving Entrepreneurs. She also is the founder of The
Corporate Escape Club, a monthly event held in the City in London for those
exploring leaving their day job.
For further information please visit www.amandacwatts.com