BUSINESS RESPONSIBILITIES

Starting your own company requires a level of responsibility and with that comes a number of duties that you are required to carry out and complete.

Accounting

Accounting is a critical component of every organisation, whether you are starting up or a large international corporation. Accounting keeps your company operating and is a must.

Pensions

According to the Pensions Act of 2008, every business in the United Kingdom must enrol and contribute to a workplace pension for its eligible employees.

Payroll

Becoming an employer has specific tax and national insurance requirements. Employers are generally responsible for collecting tax and national insurance from their employees' salaries and remitting the funds to HM Revenue and Customs (HMRC).

CIS

Even if contractors make deductions throughout the year, you are still responsible for paying the necessary tax and National Insurance for your business if you are enrolled with the Construction Industry Scheme (CIS).

TAX

The tax you must pay as a small business owner is determined by your legal structure: sole trader, limited company, partnership, or limited liability partnership (LLP).

Real-time Information

Previously, HMRC asked companies to submit their tax and NI payments monthly and then report those amounts on a set of forms at the end of each tax year. However, HMRC launched a new real-time reporting system for employers on 6th April 2013. It is commonly referred to as the RTI (Real Time Information) system.

End of Year

The day your company's accounting period finishes is referred to as the 'Year End.' It is also the day when a limited business must deliver specific paperwork to HMRC and Companies House.

VAT

VAT is an abbreviation for Value Added Tax, a form of tax levied on the purchase of goods and services. Businesses pay VAT on purchases and charge VAT to their consumers.