Start your own business - overview with useful tips and tax advantage comparison betwiin sole trader and limited company

1. Start your own business Omnipol Accounting Ltd Accountants, Tax and Business Advisers

3. Business Plan

4. Record Keeping

5. Business Advice

6. Tax Rules

7. Income Tax / Corporation Tax

8. PAYE

10. Budget

11. Marketing

12. Internet

13. ITSummary

15. Sole Trader

16. Partnership

19. PAYE (Pay As You Earn)

20. Corporation Tax

21. Income Tax

23. reduced rate - currently 5 per cent

25. PAYE – contd. D. You'll have to give each of your employees a pay statement - or payslip - at or before the time that you pay them. This can be in either paper or electronic format but it must show certain items, including each employee's gross pay (before any deductions are made), all deductions and the purposes for which they are made, and the net amount payable after the deductions have been made (also known as take home pay). If you don't give your employees an itemised payslip they could complain to an employment tribunal. E. Form P35 - You list details of all your employees on form P35 and the amount of Income Tax and NICs you've deducted from each of them. Your P35 must reach HMRC no later than 19 May and almost all employers are required to file it online.

26. Payslip

27. PAYE – contd. F. Form P60 - You'll need to issue a form P60 to each employee who was working for you at 5 April whose earnings reached the National Insurance Lower Earnings Limit during the tax year. The P60 shows the employee's pay and tax for the whole year. This can be in either paper or electronic format and must be given to the employee before 1 June following the end of the tax year. G. Form P45 - New employees who've had a previous job, or have had a period on state benefits, will give you a P45 when they start. When they leave you give them a completed P45 for their new employer. H. Employers' secondary Class 1 rate above secondary threshold (£136) sits currently at 13.8%

28. PAYE – contd. Employees pay also NI contributions J. PAYE payments must reach the Revenue by the 19th of the following month K. Employer must pay Statutory Sick Pay (SSP)and Statutory Maternity Pay (SMP)

29. Corporation Tax A. Corporation TaxCorporation Tax is a tax on the taxable profits of limited companies and some organisations including clubs, societies, associations, co-operatives, charities and other unincorporated bodies. The rate is currently 20% for profits up to £300.000 B. The Company must file Annual Accounts with HMRC and Companies House together with Company Tax Calculation / Tax Return (CT600)

30. Self – Employed – Income Tax All self-employed persons must file Tax Return every year. Tax is payable in two instalments (31 Jan and 31 July) Class 2 National Insurance - how much you pay You pay Class 2 National Insurance contributions at a flat rate of £2.50 a week. However, if your earnings are below £5,315 per year (2011-12) you might not need to pay. D. Class 4 National Insurance - how much you pay The amount of Class 4 National Insurance contributions you have to pay for any tax year is based on your profits for that year. You pay 9 per cent on annual profits between £7,225 and £42,475 (2011-12) and 2 per cent on any profit over that amount. E. If you are self –employed you must calculate your taxable profit

31. Income Tax Rates

32. Which to choose?

34. Purchase Records

35. Bank Statements

36. Agreements with clients, suppliers, banks, etc.

38. VAT Returns

39. Other documents, i.eCIS, P11

41. Mileage Record

42. Useful Links HMRC www.hmrc.gov.uk Companies House www.companieshouse.gov.uk Business Link www.businesslink.gov.uk Omnipol Accounting Ltd www.omnipol.co.uk

43. How we can help? Our work is dedicated to the prosperity of our Clients. We specialise in medium size business sector and start-up business. You will receive a comprehensive service, from forming a limited company or self employment registration, through business advice, to final accounts and returns preparation. You can rest assured that Your business will flourish. Today we help clients minimize taxes, accumulate wealth and plan for their retirement and estates. Practical experience in both accounting and tax compliance offers You a two-fold advantage; Consulting Services help You successfully operate and expand Your business, while high-level tax Advisory Services help minimize taxes to retain profits. More importantly, we want You to view us as more than an accountancy firm, but as a trusted partner who will be Your friend for life.

44. Get in touch : Pawel Janicki MAAT t. 02380638 503 f. 02381 789 464 m. 07878 288 050 e. tax@omnipol.co.uk

46. You have chosen the best company structure for Your business

47. You are keeping necessary records.

48. You are aware of how to go about declaring Your earnings and when Your taxes are due.

49. Help with any other accounting or tax issues You may have.