Setting up a business: Sole traders and partners

Get Started. It's Free
or sign up with your email address
Rocket clouds
Setting up a business: Sole traders and partners by Mind Map: Setting up a business: Sole traders and partners

1. Use of home

1.1. Expenses

1.1.1. Business proportion

1.1.2. Fixed deduction

1.2. Impact on PPR

1.3. Business rates

2. Register with HMRC

2.1. Choose name

2.2. Complete online form

2.2.1. All partners need to register

2.2.2. Nominated partner to register partnership

2.2.3. Deadline: 5 October in 2nd tax year

2.3. Register as agent

3. Obligations

3.1. Keep accounting records

3.1.1. Penalty of up to £3,000

3.2. Choose accounting date

3.2.1. Overlap profits

3.3. Choose basis

3.3.1. Accruals or cash basis?

3.4. Submit a tax return

3.4.1. By 31 January after end of tax year

3.5. Pay tax

3.5.1. POAs due?

4. VAT

4.1. Compulsory registration

4.1.1. Historical test

4.1.1.1. £85,000

4.1.2. Future turnover test

4.1.2.1. £85,000

4.2. Voluntary registration

4.2.1. Advantages

4.2.1.1. Recover VAT

4.2.1.2. Avoid penalty for late registration

4.2.2. Disadvantages

4.2.2.1. Charge VAT on sales

4.2.2.2. Submit VAT returns

4.3. Pre-registration supplies

4.4. VAT schemes

4.4.1. Annual accounting scheme

4.4.2. Cash accounting

4.4.3. Flat-rate scheme