Tax Requirements for New Business Owners: The Importance of Expert Guidance

Even though the CBI has forecast that economic growth in the UK is likely to diminish during the third financial quarter, there is no need for business owners to panic at this juncture. After all, the nation has enjoyed nearly eighteen months of steady and continuous growth, while a subsequent period of consolidation may enable firms to achieve greater clarity moving forward. There is certainly no reason for aspiring entrepreneurs to shelve their plans to launch a company, as the current climate remains relatively robust and prosperous.

The Issue of Taxation and the Need for Expert Guidance

In fact, aspiring entrepreneurs and new business owners should be far more preoccupied with ensuring that their business has the requisite infrastructure and is compliant with UK taxation laws. If the foundations are not in place, commercial start-ups of all sizes can fall foul of stringent regulations and ultimately fail before they have even begun. Taxation is arguably the most important consideration, as this will have a direct impact on your bottom line profit margin while trading and the repayments that you are required to make to the British government.

For new companies, there are two main infrastructures to consider. More specifically, entrepreneurs can choose to either establish themselves as sole traders or register their ventures as limited companies. There is a considerable difference between the two, as while the former is usually applied to single employee businesses the latter is better suited to firms that have a body of staff and multiple paid representatives. Your projected revenue and profit statistics will also influence your choice, as different levels of repayment are required depending on your size, scope and success.

Once you have established a taxation infrastructure, the next step is to understand your financial liabilities. Expert accountancy companies such as Gibson Hewitt can help you with this endeavour, as they have an in-depth knowledge of financial law and how it impacts on specific business types. While it may be well known that all commercial entities are required to pay corporation tax in the UK, for example, a financial advisory firm can educate with regards to the VAT (Value Added Tax) threshold and whether or not your business is eligible to pay.

With this in mind, do not be afraid to seek out expert assistance before starting your business venture. This will help you to create a compliant and profitable company, which ultimately helps you to consolidate, succeed and prosper in a changeable economic climate.