Frequently asked questions
There are a variety of legal structures available for your business, ranging from sole trader to partnership, limited company or PLC. The question as to what is right for you will depend on a number of factors, including the type of business, tax planning issues, and how the owners of and workers in the business are to be remunerated.
You will need to register for VAT if you expect your turnover to exceed £70,000 during the next month or once your turnover exceeds £70,000 in a 12-month period. You may also want to register for VAT even though your sales do not exceed the threshold. For example, if a significant part of your sales are "zero-rated" or "reduced rate" for VAT purposes, then if you register for VAT you may be able to claim a refund of some or all of the VAT you pay on inputs.
If your business has employees, it is required to have employer liability insurance. In addition, many businesses also carry public liability insurance -- since most businesses, one way or another, interact with the public. Depending on the nature of your business, you may need motor insurance, product liability insurance and/or special types of risk cover such as professional indemnity insurance or performance bonds.
Employers must use the PAYE ('pay as you earn') system to deduct taxes from their employees' earnings and remit them to HMRC. Nearly all businesses are required to make such deductions. You are also required to pay a separate employer's National Insurance contribution. The amounts that you are required to deduct depend on each individual employee's tax coding. Many businesses choose to out-source their payroll accounting, but some do their own. For people who run small businesses and want to handle their own payroll, HMRC offers free assistance.
Yes, all businesses need to prioritise health and safety. If your business is labour-intensive, and especially if it involves physical labour and/or transportation services, it will likely present a range of health and safety issues and may be subject to inspections to ensure regulatory compliance. You will need to determine how you will ensure compliance, and how much it will cost the business to do so.
Although most people try to avoid lawsuits and prefer not to breach contracts, there are times when people find it necessary to take a contract dispute to court. This article provides a basic overview of the law relating to breaches of contract and the remedies for breach of contract.
- Statutory Restriction on data handling
- Possible Sentence
- bail ??
- A messy will situation.... help required!
- Changes in contract working hours?
- I was detained for over 24 hours by police without being charged. Is this allowed?
- Property Taken Under Warrent
- Why should I plead not guilty to a traffic accident when I caused it?
- Road Traffic Accident
- Need an immediate response, my people.
- Challenge a breach of contract leading to a MyDeposits ADR loss
- Changes to disciplinary procedures without notice?
- Is this constructive dismissal?
- time of work
- Child Tax Credits
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