If you have other people to work for you then you need to know whether they are employees or self employed. If they are employed then you need to apply PAYE and collect income tax and national insurance.
The same can also apply where you are working for others and you have put a company between you and your clients. By doing so you have shifted the legal responsibility for knowing whether you are self employed to yourself.
If you are in the construction industry and your workers are self employed you may have to apply the Construction Industry Scheme (CIS). Failure to do so can be costly in terms of direct tax due, but also in the fact you may no longer be able to receive payments gross.
Once you know what taxes apply you have to start calculating them and paying them over to the HM Revenue and Customs.
We can help you with the initial identification and then run or help run payroll, CIS or IR35 schemes.
Running a business is time consuming. There are new sales opportunities, existing customer queries, and telephone messages to get back to. However, financial records must be kept up to date if the business is to maximise its profits and meet its accounting and tax obligations.
There is currently a lack of suitably qualified staff and therefore you may be spending too much time on the paperwork rather than spending your time doing what you do best – and probably enjoy most!
We can offer all levels of service for different size businesses. If you need your monthly records writing up we can help. If you need a fully qualified accountant’s skills, but cannot afford a full time person we can offer a cost effective solution.
Companies have their own law, the Companies Act 2006, which lays out what companies can or cannot do.
If you are considering a company we can help you understand the legal form and content required to get up and running as well as help with ongoing issues.
Do not get caught out by not having done the right paperwork as Companies House can issue penalties and lack of the correct paperwork may mean your carefully laid plans have not be legally recognised!