Home Budget 2007 Company Profile Services Accountancy Zone Business Zone Tax Zone IR35 Update News Articles Feedback Search Legal Notice How To Find Us Setting up your business Starting out as a sole trader or in partnership is very easy to do. There are some limitations on what name you can use, but you effectively have a lot of freedom. With limited companies, the setting up process is slightly more involved. If you want to set a company, please click here to be guided through the process. A significant task for the new business owner is assuring that the business is properly complying with the extensive tax and information filing requirements imposed by the various authorities. Problems and penalties could arise if the new business is not registered with the appropriate tax authorities in a timely fashion. Here we summarise some of the more prominent requirements common to most businesses. Inland Revenue It is necessary to notify your local Inspector of Taxes of your existence by completing forms CT41G (companies) and CWF1 (sole traders/partnerships). The form notifies the Inland Revenue of your accounting date, your accountant, and also enables a PAYE (Pay As You Earn) Scheme to be set up, which is a requirement for all limited companies and for sole traders/partnerships who are to be employers. There is no deadline for filing the form but notification must be made to the Inland Revenue by the following dates: Sole traders/partnerships - 5 October following the year of assessment in which you commence trade Companies - within the first twelve months of commencing to trade or the accounts date whichever is the earlier. Department of Social Security Sole traders and partners have a liability to Class 2 National Insurance Contributions, and these are payable quarterly, depending on the level of profit. Class 2 contributions are at a weekly level of £6.35 and the local DSS Office should be notified that you have commenced trading so that arrangements can be made to collect your Class 2 contributions. Her Majesty's Customs and Excise You need to consider if it is beneficial to be VAT registered from the outset. The pros and cons are discussed here. If you are registering for VAT, a form VAT1 needs completing, and if you are a partnership, an additional form needs to be completed giving details of all the partners. Tax Calendar The following summarises some of the more significant filing dates for a corporation using a calendar year end. Many of these requirements also apply to partnerships and sole traders. Naturally, if a year end other than 31 December is used, some of these dates will vary. Annual Events Date Return 19 May Submission of forms P35 and P14’s 6 July Submission of form P11D 19 July Payment of Class 1A NIC 30 September Payment of corporation tax November/December Year end tax planning 31 December Submission of rax return (12 months after the accounting period) Monthly Events Date Return Monthly on 19th Payment of payroll taxes (under certain circumstances - quarterly) Quarterly Events Date Return 14 April 14 July 14 October 14 January Forms CT61 to be submitted and tax paid (if applicable) for dividend and interest payments Quarterly VAT returns (although these can be monthly) [ Business Zone Home · Previous - Selecting The Right Structure · Next - Being A Boss ]