Frequently Asked Questions

Q When and with whom do I have to register, if I start a business?

A You should register as soon as possible, The Inland Revenue have recently introduced a new "fine" for late registration as Self Employed, if you do not register within 3 months of starting the fine is £100. Limited Companies must be formed before you can start trading and the setting up process usually takes approximately 10 working days.

Q When do Accounts have to be prepared?

A Usually this is after 12 months of trading, but can be more or less. It is important to hand your books and records in to us as soon as possible after the year end to give us plenty of time to prepare the accounts. In the case of Self Employed & Partnerships, they have to be available for the Income Tax Return to be completed by 31 January each year. For Limited Companies they usually have to be competed within 9 months of the accounting date.

Q Do the Inland Revenue check the Accounts?

A No not as a rule, but they do have increasingly sophisticated systems for spotting the "odd" accounts that do not appear to be quite right and they are more likely to query Returns which are submitted late. The best way to minimise the risk of Inland Revenue Enquiries is to be honest and punctual.

Q What does it cost to register a business?

A A lot less than you might think In fact there is no charge to register as self-employed or a partnership. A limited company costs only £141.00 to set up. We normally ask for a payment on account of £50.00 for our fees.

Q Could I be investigated by the Inland Revenue?

A Yes, everyone now has a chance of being randomly selected for Inland Revenue Enquires but this will not always lead to a full investigation. We recommend that everyone purchase a special insurance policy, which covers the full cost of our fees for acting on your behalf in the event of Inland Revenue Enquiries or a full investigation for which fees can easily reach £2,000. The annual premium is approximately £120.00.

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