Originally written by Joanne Harris on Small Business
Choosing to go self-employed is a career goal for many working people in the UK. More money, better hours, and a flexible work-life balance are just some of the reasons many people aspire to work for themselves. But should you become a sole trader, form a limited company or even a partnership? Choosing the right trading type is a crucial early decision.
Although the pandemic has caused issues for all types of businesses, it failed to dampen the nation’s entrepreneurial spirits, with the latest ONS data recording more than 4.3m people still registered as being self-employed as of March 2021.
As vaccinations speed up and lockdown restrictions ease, now could be the time to form the business you’ve been planning to set up over the past year.
However, before you start, it’s important to consider the right company trading type for you.
The way in which you register your business can impact your tax, take-home pay, legal responsibilities, and even personal finances, so it’s vital to look at all the options before you make your choice.
Sole trader
Being a sole trader is the single most popular way of trading as business, with almost 60 per cent of UK
Tag Archive for Setting up a company
Hot Business News Today
Forming a company: Choose your trading type
by Joanne Harris • • 0 Comments
Originally written by Joanne Harris on Small Business
Choosing to go self-employed is a career goal for many working people in the UK. More money, better hours, and a flexible work-life balance are just some of the reasons many people aspire to work for themselves. But should you become a sole trader, form a limited company or even a partnership? Choosing the right trading type is a crucial early decision.
Although the pandemic has caused issues for all types of businesses, it failed to dampen the nation’s entrepreneurial spirits, with the latest ONS data recording more than 4.3m people still registered as being self-employed as of March 2021.
As vaccinations speed up and lockdown restrictions ease, now could be the time to form the business you’ve been planning to set up over the past year.
However, before you start, it’s important to consider the right company trading type for you.
The way in which you register your business can impact your tax, take-home pay, legal responsibilities, and even personal finances, so it’s vital to look at all the options before you make your choice.
Sole trader
Being a sole trader is the single most popular way of trading as business, with almost 60 per cent of UK
Hot Business News Today
How to get more from your business plan
by Dan Matthews • • 0 Comments
Originally written by Dan Matthews on Small Business
A business plan is an essential tool for start-ups and established organisations alike. It helps you make sense of your offering, the market in which you operate and other essential factors such as costs, revenue and projected profit.
But most businesses have no formal plan, perhaps because most entrepreneurs see little value in creating a rigid strategy that becomes obsolete within a few weeks of its completion.
They have a point, but those who reject the idea of planning wholesale risk missing out on a golden opportunity to isolate needless spending, spot opportunities and expand into new markets.
Jonathan Dowden, Product Marketing Manager at Sage, argues for a new approach to business plans, one in which bulky, static documents are eschewed in favour of practical information that changes as fast as the markets they describe.
“For start-ups it can actually be quite dangerous to write a business plan,” he says. “Unless you have data then you can’t know what will happen. If you go down the route of traditional business planning methodology then the template becomes, not an objective document that helps your business, but something that falsely convinces you that the idea is going to work.
“It’s
Hot Business News Today
2020 set to be record year for new companies created
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
This year should see record number of companies created, with an extra 84,758 businesses setting up in 2020 compared with 2019.
This is equivalent to a 12.3 per cent increase year on year, which is the highest percentage growth since 2011 and the highest actual growth on record.
Between June and August, an additional 59,358 new companies were created at Companies House, according to research.
>See also: How to become a sole trader
Sectors seeing the highest growth included e-commerce (up 88 per cent with 12,490 new businesses registered), clothing (up 55 per cent) and, unsurprisingly, retailers of medical goods (up 176 per cent).
Although on the face of it the SHL research is good news, the reality is that many new companies are created by those who have lost their jobs because of Covid-19.
Rather than create employment, 77 per cent of the UK’s 6m small businesses are sole traders offering little chance of employment to others.
>See also: Registering a company name – a Small Business guide
And there is also a question mark as to how many of the 59,538 companies created between June and August are even legitimate, given the widespread fraud which has gone on with
Hot Business News Today
2020 set to be record year for new companies created
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
This year should see record number of companies created, with an extra 84,758 businesses setting up in 2020 compared with 2019.
This is equivalent to a 12.3 per cent increase year on year, which is the highest percentage growth since 2011 and the highest actual growth on record.
Between June and August, an additional 59,358 new companies were created at Companies House, according to research.
>See also: How to become a sole trader
Sectors seeing the highest growth included e-commerce (up 88 per cent with 12,490 new businesses registered), clothing (up 55 per cent) and, unsurprisingly, retailers of medical goods (up 176 per cent).
Although on the face of it the SHL research is good news, the reality is that many new companies are created by those who have lost their jobs because of Covid-19.
Rather than create employment, 77 per cent of the UK’s 6m small businesses are sole traders offering little chance of employment to others.
>See also: Registering a company name – a Small Business guide
And there is also a question mark as to how many of the 59,538 companies created between June and August are even legitimate, given the widespread fraud which has gone on with
Hot Business News Today
Buying a company name before starting up
by seantoomer • • 0 Comments
Originally written by seantoomer on Small Business
Buying a great company name isn’t everything but when it comes to the success of your business make no mistake, it counts for a lot
It will be the way customers find and identify you, so if you have a great name in mind it’s worth protecting it – even if you aren’t ready to start trading yet.
You might think of buying a company name, but really what you’ll be doing is creating a dormant company – that is a company which is legally registered with Companies House, but doesn’t trade or have any business transactions. As long as you maintain it, no one else can set up a company in your space or sector with the same name.
This is a well-established and accepted practice, but it does come with certain annual responsibilities, and there are definitely a few pitfalls to avoid when buying a company name. So here’s a handy guide to steer you through and make sure the process is smooth sailing.
>See also: How to choose the perfect name for your business
Creating a dormant company
In short, what you need to do to keep a company name for yourself is to incorporate a limited
Hot Business News Today
Starting a beauty business: mobile vs salon
by Partner Content • • 0 Comments
Originally written by Partner Content on Small Business
Working as a beautician was once synonymous with doing business from a salon, but in an age where convenience is king, many entrepreneurs have found it more rewarding to set up their own mobile beauty businesses instead.
This involves pampering customers from the comfort of their own homes. Although, as Salon Gold notes, being a mobile beautician isn’t the same as going freelance. Freelancing simply means being self-employed, but not necessarily on a mobile basis. For example, a freelance hairdresser may choose to rent a seat in someone else’s salon rather than travelling from place to place.
Opening a salon and starting a mobile business are two exciting ways to start making money from your passion, but both are very different. Explore the pros and cons of each option to see which is the best path for your beauty venture.
Going mobile
Setting up
As you’re not required to find premises to start a mobile beauty business, all you’ll need is your equipment and a mode of transport. Public transport may be an option if your business specialises in smaller-scale services like nail art and make-up artistry, but if you need a full arsenal of tools to do
Hot Business News Today
Company formations rise by 3% in 2019 hitting 681,704
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The number of companies formed in Britain in 2019 rose by nearly three per cent, hitting 681,704 according to research.
Over 45,000 tech start-ups were launched across the UK in 2019, representing 6.6 per cent of all company formations – the equivalent of more than five new tech start-ups launched every hour.
>See also: Reading has potential to be UK’s top entrepreneur hotspot
Unsurprisingly, London had the highest number of new company formations with 221,373 companies registered, followed by second city Birmingham (14,509) and Manchester (9,064). However, Bournemouth and Poole – acknowledged to be the wealthiest places in England – were in sixth place trumping Liverpool and Edinburgh as entrepreneurial hotspots.
Top 10 cities for UK startups 2019
Location#
Greater London221,373
Birmingham14,509
Manchester9,064
Leeds 7,492
Glasgow 6,733
Bournemouth and Poole5,627
Liverpool5,421
Edinburgh5,155
Leicester5,060
Bristol5,004
Source: Centre for Entrepreneurs
Indeed, tech start-ups comprised 28 per cent of all new businesses launched in Bournemouth and Poole. Tech start-ups were also highly represented in Brighton and Hove (15 per cent), Winchester (12.8 per cent) and Cambridge (12.5 per cent).
The Centre of Entrepreneurs, which conducted the research based on Companies House data, also found some quirky businesses: 10 of the new businesses founded last year were raising llamas and alpacas, while 10 new wine
Hot Business News Today
Registering a company name – a Small Business guide
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Do I need to register a company name if I am a sole trader?
You don’t need to register a company name if you are a sole trader. However, you should register with HMRC to let them know they should expect an annual self-assessment tax return from you.
7 benefits of registering a company name vs. sole trader
#1 – Pay lower tax
One of the biggest advantages of registering a company name is that running your business as a limited company can help you to legitimately pay less personal tax than being a sole trader.
Limited company profits are subject to UK corporation tax, which is currently set at 19 per cent compared to personal tax rates of 20pc-45%.
If you are the director and shareholder of a limited company, you may choose to take a small salary and draw most of your income from the business in the form of dividends. This reduces the amount of national insurance contributions (NICs) you pay, because company dividends are not subject to NICs.
#2 – Limited liability
Because a limited company is a separate entity to you, the owner, you have “limited liability”. What this means is that you are not responsible
Hot Business News Today
The essential guide to starting a business in Bristol
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Bristol is proving itself to be a popular place for entrepreneurs who are starting up a business.
Out of the British core cities, Bristol has the fourth highest number of business start-ups at 93.7 per 10,000 of the working age population in 2017.
The city is well-known for the Clifton Suspension Bridge, being the biggest manufacturer of hot air balloons and, of course, being the birthplace of Ribena. Cary Grant and Banksy also hail from the city.
It has two universities, University of Bristol and University of West of England, so you’ve got the possibility of hiring fresh talent.
Is it right for you? Let’s take a look at some of the key lifestyle factors.
Population
Bristol is the 10th-largest city in Britain, with an estimated population of 459,300, according to the local council.
The age make-up is fairly young, with a median age of 32.7 years compared to 39.9 in England and Wales. Over half (54.2pc) of Bristol’s working age residents are qualified to degree level or above.
It has more children aged 0-15 than those aged over 65 – kids make up almost 19pc of the population. Older people make up a smaller 13pc.
Crime rate
Crime in Bristol is at