Advice on Starting a Business

AJF Taxation > Advice on Starting a Business

Starting a business can be a daunting time, even if you’ve planned and wanted this for a while.  Just a little guidance in the early days can make a difference.  The type of discussions we have with new business owners include all of these things, and more……

Should I be a sole trader or a company? For insight, click here…
What records do I need to keep?
Do I need accounting software, or should I just keep invoices and receipts for you? For more info on this, click here…
Can I have tax relief for all of the expenses that I have paid out on?
How do I know how much tax to allow for?
How will I pay myself? Do I need to pay myself a salary?
Do I need a separate bank account and does this have to be a business bank account?
What can I claim a deduction for?
What happens if I made a loss initially, even though I’m starting to make profit now? Can I claim tax relief for this?
I’m also working while setting up or growing my business, does this make a difference to whether I trade as a sole trader or a limited company?
How much do you charge if you help me?
Can you offer any other recommendations and advice for me, as a newly created business?

All of these are common queries to us and we are always eager to help a new business and provide answers and workable solutions.

We’ve been a new business ourselves and so we are able to bring more to the table than just accounting and tax advice. We have a strong network of professionals to give you genuine support in helping you grow.

For more detail of some of our network – look here…

CLIENT CASE

We have a client who is an up and coming influencer on social media platforms.  She is beginning to receive payments from promotions and reviews and this can only be increasing in the future as she is gaining traction for more and more followers becoming interested in her sites.

She is also employed by a firm in London and so is still keen to progress her career in her chosen profession.

Any income from her new thriving business will push her towards more and more tax burden as a higher rate taxpayer.  She needs some of the income for her London lifestyle, but is keen to retain some of this passive income for her future plans.

With careful review of her future objectives and her current position, Amanda recommended the use of a company entity for her social media business.  It is a great decision in the early stages of the business.  Not only would it help to immediately reduce tax liabilities, it makes sense to create the company in the early stages to avoid any time-consuming changes in the future.