Setting up a business: Sole traders and partners
by Stephen Relf
1. [Obligations](https://library.croneri.co.uk/po-heading-id_wthnkMkbRkCpyHErg0-Drg)
1.1. Keep accounting records
1.1.1. Penalty of up to £3,000
1.2. Choose accounting date
1.3. Choose basis
1.3.1. Accruals or cash basis?
1.4. Submit a tax return
1.4.1. By 31 January after end of tax year
1.5. Pay tax
1.5.1. POAs due?
2. [Register with HMRC](https://library.croneri.co.uk/po-heading-id_JqOzXG-6_kaP3o4NrI09XQ)
2.1. Choose name
2.2. Complete online form
2.2.1. All partners need to register
2.2.2. Deadline: 5 October in 2nd tax year
2.2.3. Nominated partner to register partnership
2.3. Register as agent
3. [VAT](https://library.croneri.co.uk/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
3.3. Disadvantages
3.3.1. Submit VAT returns
3.3.2. Charge VAT on sales
3.4. Pre-registration supplies
3.5. VAT schemes
3.5.1. Annual accounting scheme
3.5.2. Flat-rate scheme
3.5.3. Cash accounting
4. [Use of home](https://library.croneri.co.uk/po-heading-id_Ufr_JgrsDEOQHAEFSqpqZQ)
4.1. Expenses
4.1.1. Business proportion
4.1.2. Fixed deduction