How is it that I register my company?
The main reason to register your business is to defend against any nasty surprises from HMRC – if you’ve not registered and not paid the correct in taxes, you’re likely to be hit having a hefty fine plus a backdated bill for that full amount your debt is.
You might also need to subscribe for certain varieties of trading activity. As an example, if the business sells alcohol otherwise you want to operate being a street vendor, you’ll need a specific license before you can legally trade.
If you plan on employing any employees, you’ll must register being an employer with HMRC. Don’t forget that you’ll also need to get employer’s insurance, because a legal dependence on service repair shop with at least one employee.
And although there’s more admin involved, there are many reasons the reasons you should register your business as a limited company with Companies House. If you’re planning to build a brand, registering this way means you are able to reserve and protect your company name. Operating as being a limited company also reduces your personal financial liability, should things go wrong.
If you’re unsure by what is needed of your respective business, it’s worth talking with a financial advisor for guidance.
Is my hobby a small business?
There’s commonly a blurred line when it comes to differentiating from your hobby plus a business. Basically, if you are making money from your hobby or side hustle, then you’ll have to register as a business with HMRC, in case you work from home and don’t have business premises.
You’ll want to register when:
Any trading or professional business activity comes about
Services or goods are bought or sold
Wages are taken and profit is made
Any backpacks are bought to offer and create a profit
Any interest rates are earned
You’ll definitely should register your business if you start employing staff or considering business insurance, so it makes sense to acquire this sorted as soon as possible. Once all the admin is sorted, after that you can move your organization premises or start conducting interviews to defend myself against staff.
However, you won’t must register your company with HMRC if you’re earning under ?1,000 per tax year from the business.
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