Setting up a business: Sole traders and partners
by Stephen Relf
1. [Register with HMRC](https://library.croneri.co.uk/navigate-taxb/po-heading-id_JqOzXG-6_kaP3o4NrI09XQ)
1.1. Choose name
1.2. Complete online form
1.2.1. All partners need to register
1.2.2. Nominated partner to register partnership
1.2.3. Deadline: 5 October in 2nd tax year
1.3. Register as agent
2. [Obligations](https://library.croneri.co.uk/navigate-taxb/po-heading-id_wthnkMkbRkCpyHErg0-Drg)
2.1. Keep accounting records
2.1.1. Penalty of up to £3,000
2.2. Choose accounting date
2.3. Choose basis
2.3.1. Accruals or cash basis?
2.4. Submit a tax return
2.4.1. By 31 January after end of tax year
2.5. Pay tax
2.5.1. POAs due?
3. [VAT](https://library.croneri.co.uk/navigate-taxb/po-heading-id_bBdYmtcmGkilyHRRvHjHgA)
3.1. Compulsory registration
3.1.1. Historical test
3.1.1.1. £85,000
3.1.2. Future turnover test
3.1.2.1. £85,000
3.2. Voluntary registration
3.2.1. Advantages
3.2.1.1. Recover VAT
3.2.1.2. Avoid penalty for late registration
3.2.2. Disadvantages
3.2.2.1. Charge VAT on sales
3.2.2.2. Submit VAT returns
3.3. Pre-registration supplies
3.4. VAT schemes
3.4.1. Annual accounting scheme
3.4.2. Cash accounting
3.4.3. Flat-rate scheme
4. [Use of home](https://library.croneri.co.uk/navigate-taxb/po-heading-id_Ufr_JgrsDEOQHAEFSqpqZQ)
4.1. Expenses
4.1.1. Business proportion
4.1.2. Fixed deduction