Starting a New Business Guide

3. Register with the Inland Revenue

4. Open a Business Bank Account If you want to track your income and expenses for your business, by far the easiest way is to set up a business bank account. Most banks offer a free year introductory account. The simplest method is to contact your own bank to do this. You can set up an account in minutes online or check out moneysupermarket.com for some alternative options. Why have a business account? 1. You can track all income and expenses in one place 2. Make purchases of things you need for the business 3. Give customers a legitimate account to pay into 4. Set up your account to connect with your online trading merchant 5. Keep your personal account separate from the business to avoid confusion 6. Easy way to calculate your profits for the end of the tax year

You don’t need to register with the Inland revenue until you start trading. They will need to know the date you started, the business name and your business address. You could just use your name or use your trading name. At the end of the financial year (starts 6th April and ends on 5th April) you will need to tell them how much you earned. There is a simple form which you can fill in to show your sales and your expenses which gives them an indication of your profits. This isn’t a complicated process! To register, follow the link to set up your government gateway account. They will issue you a User ID and password to access HMRC services. You will then get a UTR (unique tax number) which will allow you to make your self assessment tax return. You have until 31st January after your tax year ends to complete your online assessment. www.gov.uk/set-up-sole-trader