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Claire Said:

I want to start small business, how do i stand with VAT and tax (uk)?

We Answered:

You'll need to register with Inland Revenue (HMRC) within 3 months of setting up your business to say that you are running a business. You usually only pay tax on the profits of your business and you don't start paying until you reach a certain level. (You'd need to check this out with HMRC.)

VAT is similar in that there's no compulsion to be registerd for VAT unless your turnover reaches the threshold point - around £68K, I think. It can be useful to register voluntarily for VAT below that level if you buy a lot of items that you have to pay VAT on. That way you can claim it back and set it off against the VAT you charge your customers. There's a bit more paperwork to do when you're VAT registered but it can be set up in your accounting system so that the numbers fall out automatically. (I've done this just using Excel spreadsheets - nothing fancy.)

HMRC run free seminars on starting in business that guide you through all of this. They're well worth attending and you can usually ask questions that relate to your situation afterwards. Very helpful. There's a lot of information on their website, too, and you should be able to find out when they're doing seminars on there as well.

Good luck!

Jessie Said:

What is the various business statuses now in UK?

We Answered:

This is taxes.

Stacey Said:

Starting a business. I want to buy a small hovercraft and give people rides in Southsea, UK?

We Answered:

Contact your local Business Link for free help and advice on starting your business. They'll guide you through the process for working out whether your business is likely to be viable, how you're going to attract your customers and all the legal side of things. Public Liability insurance is going to be high for something like you're proposing.

The CAB also has information on licences that businesses require.

By the time you load and unload your passengers you're looking, realistically at 3 trips per hour. Assuming a full load of passengers per trip that's £120 for an hour or £960 for a full day. Is it likely that you can achieve that and will it cover all your expenses, give you a living wage and leave a bit of profit? How many months of the year can you reasonably expect to run this and what are the charges for storing the hovercraft out of season?

Good luck!

Jacob Said:

Payslips for small businesses UK?

We Answered:

Have you registered with HMRC as self employed, if not and you are trading, you are in trouble. They will send you all the stuff you need to deduct NI and details of tax deductions.
I used wage packets bought from Staples, on the front is the relevant sections to fill in. You must keep accounts and enter everything in them.
You should not be employing someone if you do not know the basics of business.