Start up, legal and tax issues

Various start up, legal and tax issues

Exam Board: OCR

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Trading Name

Aspects to consider when deciding on a name for the business:

  • Name
  • Location
  • Reason
  • Target Market
  • Promotional Aspects
  • Personal Reasons
  • What is the Product
  • Existing companies
  • Trademarks
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Business Structure

What structures can a new business adopt?

  • Sole trader
    • alert HM Revenue and Customs of your start up
    • Begin trading
  • Companies
    • Company must be registered with Companies House
    • Inform HM Revenue and Customs
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Keeping Records

Explain what records need to be kept, how and why:

  • Vitally important - particularly for tax and payroll
  • Easy-to-use accounting software is readily avaliable
  • Worth investing in the services of a book-keeper
  • Keep a paper record of what you have to pay out for the business (business credit card)
  • Keep a paper record of sales revenue from customers
  • Keep your own records up to date, probably a spreadsheet (Microsoft Office Excel, OpenOffice Calc or similar)
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Selecting the Right Premises

What factors need to be taken into account

  • Communications
  • Labour
  • Customers
  • Suppliers
  • Government Assistance
  • From the home
  • Rent or lease office/industrial units - can often be short term if needed/wanted
  • Take a retail outlet
  • Share space with another start-up
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Information about taxes for small businesses:

  • Taxes
    • Income tax
    • Corporation tax
    • Value added tax (VAT)
    • National Insurance (NI)
    • Business rates
  • Tax
    • How much tax a business has to pay
      • sales made
      • employees
      • whether LTD or sole trader
  • VAT
    • Small businesses only pay if sales over £67,000 p/year
    • VAT at the time of this publication is 20%
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