How to Open a Business in England
A survey of more than 2,000 adults by Enterprise U.K., a social enterprise organization, found that 17 percent of responders wanted to start their own business. The survey predicts that an extra 1.1 million jobs will be created if this were to happen. Despite the recession, new businesses are starting up and there are plenty of government-backed support for people who want to realize their ambitions.
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Instructions
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Register your business with HM Revenue and Customs, the government tax agency. You can register online or by phone and must do this within three months of opening your business. You will need to inform the agency if you plan to be self-employed, a sole trader or if you have set up a limited company. These rules apply to all businesses in the U.K., not just England.
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Secure business funding and set up a business bank account. Draw up a business plan outlining your vision and aims. Make projections about income and expenditure. Contact banks which specialize in business banking; some offer services for free. Use your business plan to persuade the bank to lend you the money you need by explaining how you plan to grow your business.
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Find an office or workshop. Most U.K. towns and cities run serviced offices and workshops which offer low rents and flexible terms to new businesses. Working from home is also an option. When you register your business, you must inform HM Revenue and Customs of your business address.
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Register for value added tax (VAT). You must register if your business has a turnover of more than £70,000. Registration for turnover under that figure is voluntary. Being VAT-registered allows you to claim back the VAT you spend on any capital costs such as your computer or other equipment to run your business. You must charge your customers VAT if registered and file regular VAT returns to HM Revenue and Customs.
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Advertise in job centers, job websites and local newspapers if you need staff. You can recruit through employment agencies, but this will cost more because of agency fees. If you recruit people directly on a permanent or temporary basis, you will need to pay national insurance or employment tax and holiday pay.
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Keep accurate accounts to file at the end of the financial year to HMRC. Keep receipts of any expenses you incur as these can be offset against tax. File a tax return to HMRC at the end of the financial year. You have to send your accounts to Companies House, the U.K. registrar of companies if you have set up a limited company.
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Tips & Warnings
Hire an accountant to do your tax return for you. It will save you time and could save you money.
Business Link, the UK government business advisory service, offers free, impartial advice for new businesses. You can book an appointment with an advisor and attend free training courses.
Failure to keep accurate accounts and file a tax return to HMRC in time will lead to an automatic fine.
References
- Photo Credit business image by peter Hires Images from Fotolia.com
