Setting up a business can be a daunting affair, especially when you consider the costs involved. This depends on the type of business and what you need to do when setting it up. A business advisor would help you understand the types of businesses and what your business falls under. This makes the registration process must easier.
Businesses are typically registered as a sole trader, limiter company, or partnership. The registration process and requirements depend on the type of business, but it is simpler to set up as a sole trader.
If you are registering your business as a limited company, you can get help from accountants in London, who come with the necessary expertise. S&T Associates, for instances, has skilled professionals who can help you set up a limited company.
If two or more people are running the business together, it is likely to be registered as a partnership.
The rules applicable to the business depend on the type of business and a business advisor attached to a firm like S&T Associates can help you in this regard.
Permits And Insurance
When it comes to cost, two key areas you want to look at are licenses or permits that you may require as well as insurance. You may need a license for some business activities as well as other activities like street parties and music.
Even when you are just starting up, your business may require insurance. A business insurance can protect you and your business against unexpected costs like damage to the premises and legal costs. There are some types of business insurance that you are legally required to have. For instance, if you are an employer, you are legally required to have employers’ liability insurance.
A commercial motor insurance is required if your business uses vehicles and, depending on the type of business, you may also need professional indemnity insurance.
Business Premises
One of the biggest decisions you will be required to make when starting a business is where the business will operate from. You can run your business from home, but you may also be required to rent or buy property for your business. Since you are renting or buying property for your business, you may have to pay business rates.
However, a business advisor can help you with discounts that small businesses are eligible for. This can reduce the cost of renting or buying property.
HMRC states that the small business rate relief is offered when the property’s rateable value is less than £15,000 and the business only uses one property. However, you may still be able to get relief if you use more than one property for your business.
When considering business start-up costs, accountants in London would recommend checking if you can claim office, property and equipment as expenses. Certain costs associated with setting up a business are considered allowable expenses, which can be deducted from your taxable profit.
For those who are self-employed, allowable expenses include office costs, travel costs, clothing expenses, staff costs, and costs of the business premises. Website costs and other advertising and marketing costs can also be considered allowable expenses, as are training courses related to the business.
Employees
If your business requires more staff, you will have to employ a few people. This comes with its own costs. Payroll costs, for instance, will be added to the cost of setting up a business. A firm like S&T Associates provide payroll services that you can access to ease the burden of the business’s accounting functions.
S&T Associates offer comprehensive payroll services like customised payslips and summaries and analyses of staff costs. They also provide services like administration of PAYE, national insurance, statutory sick pay, and statutory maternity pay, and the completion of weekly or monthly statutory forms to submit to HMRC under the Real-Time Information regime.
In addition to the cost of payroll services provided by accountants in London, you will also have to pay for your employees’ national insurance. However, you may be able to claim employment allowance, which allows eligible employers to reduce their annual national insurance liability by up to £4,000.
You may also have to provide workplace pensions to eligible staff.
These are all fixed costs and a business advisor from S&T Associates will help you find the best ways to keep these at a minimum. You can also apply for a government-backed start-up loan of £500 to £25,000 to start or grow your business.
