If you’re at the beginning of an exciting new business endeavour, there is one key step to take before it’s well and truly underway – registering with HMRC. Every business in the UK must be registered with HMRC; it’s a fundamental step which lays the groundwork for financial compliance and legal legitimacy.
At Fiander Tovell, we are dedicated to assisting businesses at every stage of their journey, from inception to triumph. While registering with HMRC is relatively simple, there are some key considerations that can impact your business in the long run. That’s why our team is here to guide you through the process seamlessly.
So, are you ready to make your business official? Learn how to register your new business with our comprehensive guide!
1. Choosing your business structure
If you are one of our avid readers, you may have seen our blog about trading options,which covers the different business structures available to start-ups. Whether you chose to operate as a sole trader, partnership or limited company, it’s important to be aware of what each structure would mean for your operations:
Sole trader
An individual operates as the sole owner and is personally responsible for all aspects of the business, including finances and liabilities.
Partnership
A business structure where two or more individuals share ownership and responsibility for the business, including profits, losses, and liabilities.
Limited Company
A business structure where the company is a distinct legal entity from its owners (shareholders), offering limited liability protection and the potential for growth through the sale of shares. A full rundown on setting up a Limited Company can be found here.
2. Registering online
Once you have decided on a business structure, you’ll have to register your business online. HMRC offers an online registration portal designed to streamline the process. You will need to provide information such as your personal details, business name, address, nature of business activities, and relevant financial details.
When registered, HMRC will issue you with a Unique Taxpayer Reference (UTR) and may allocate other reference numbers depending on your business structure.
Once you’ve set up your business tax account, you can use it to:
- Register for Self-Assessment
- Register for VAT
- Set up PAYE
- Register for Corporation Tax
3. Ongoing compliance
Once registered with HMRC, it’s crucial to stay compliant with regulations by filling accurate tax returns on time, making payments promptly, and keeping a detailed record of all business transactions. Failure to comply can result in penalties, fines, or even legal action from HMRC, which can have severe consequences for your business’s reputation and financial stability.
Our experts are fully aware of compliance with HMRC regulations. With our comprehensive understanding of tax laws and diligent approach, we ensure that your business stays on track with accurate tax returns, timely payments, and meticulous record-keeping. This is why we outsource our bookkeeping services to provide businesses with skilled professionals that can streamline the entire process to avoid costly errors.
There, you should now be fully registered with HMRC! However, our help doesn’t stop here. We have a wealth of articles covering the different aspects of business growth along with the services we provide to ease your stress. Why not take a look at the next step of starting up your business: ‘Sustaining your start-up‘
If you want more information on our services, or further guidance, don’t hesitate to contact our Commercial Client Director, Fabrice Legris: fabrice.legris@fiandertovell.co.uk