One of the biggest
decisions a budding entrepreneur or businessman
has to make is to decide what kind of company
structure he envisions for his future business.
Partnership and a Sole Proprietorship
(trader)........are both forms of
self-employment. A partnership basically means
that there are two or more people who claim
ownership of the business. Both these options
are considered the simplest methods in which to
trade. Based on UK law, a partnership or sole
proprietorship must keep all their invoices and
receipts for six years as well as keep a
detailed record of the money that was earned and
the money that has been spent for the business.
Additionally, a Personal Tax Return must be
filed at the end of the tax year. The said
income and expenses will then be declared at
this point.Being self-employed businessmen
who enter into these two discussed options must
pay their own self assessment tax and National
Insurance contributions. Businessmen who undergo
these tasks must be able to show details of
their income, gains, reliefs, and allowances. A
faithfully kept record will make these tasks
easier.
It is recommended that business owners who enter
into a Sole Trader/Partnership, unless their
income is very small, should hire an accountant
to perform these tasks in their behalf. It may
be considered an expense but a good accountant
can end up saving the company more money.
Tips and
guidance on setting up your new company
If you have any questions and wish to book a
free no obligation consultation, call us now on:
Tel: 01277 725252 |
