Start Up

Tax Issues for Start Ups

We can advise new firms on the various tax issues affecting them on start ups.

Registering With The Inland Revenue Sole Traders and partnerships must register with the Inland Revenue within three months of setting up in business. If you fail to register within the first three full months, you may be liable to a penalty of £100. The Class 2 National Insurance, VAT and payroll (PAYE) registration process can all be initiated by the Inland Revenue’s self-employment registration form. There is no penalty regime for incorporated businesses which are registered automatically by the Inland Revenue.

VAT You will probably have to register for and charge VAT if: your taxable turnover reaches, or is likely to reach, a set limit you have taken over a business as a going concern, or you acquire goods from other European Community countries. Even if you do not have to register, it may benefit your business to register voluntarily. See the LaiPeters & Co VAT pages.

Tax Allowances and Tax Relief There is a number of allowances designed to encourage investment in your business. These include: -

  • Enhanced capital allowances on certain acquisitions for small and medium sized businesses.
  • Enhanced Research and Development expenditure.
  • Direct investment incentives.