Self Employment Tax Guide
Commercial considerations
Working for yourself can bring flexibility and freedoms that employed individuals do not have - however, there are a number of commercial considerations that should be taken into account before making the decision to start your own business.
We have listed some of the important issues below:
Business insurance
When you run your own business, it will usually be a good idea to take out business insurance. This can provide financial safety should your business suffer from loss due to an unforeseen event. There are many different types of business insurance, ranging from legal liability and employee-related risks through to property damage.
Which insurance you choose to take out will be determined by your income, your budget, your business forecast, the type of business you run, potential risk factors and the type of environment that the business operates in.
We have a carefully chosen panel of specialist insurers that we can refer you to who can provide competitive tailored packages, ensuring that your business is covered at all times and providing you with confidence that you have the right professional support to fall back on should the need arise.
Employment Issues
It can be an exciting time for any business when you expand and look to take on your first member of staff.
However, there are a number of important issues that you must consider and implement to ensure that you are meeting your legal obligations as an employer.
Employing staff for the first time
There are 7 things you need to do when employing staff for the first time.
- Decide how much to pay someone - you must pay your employee at least the National Minimum Wage.
- Check if someone has the legal right to work in the UK. You may have to do other employment checks as well.
- Check if you need to apply for a DBS check (formerly known as a CRB check) if you work in a field that requires one, e.g. with vulnerable people or security.
- Get employment insurance - you need employers’ liability insurance as soon as you become an employer.
- Send details of the job (including terms and conditions) in writing to your employee. You need to give your employee a written statement of employment if you’re employing someone for more than 1 month.
- Tell HM Revenue and Customs (HMRC) by registering as an employer - you can do this up to 4 weeks before you pay your new staff.
- Check if you need to automatically enrol your staff into a workplace pension scheme.
We can provide detailed guidance on these issues ensuring that you remain compliant at all times.
Regulatory Compliance
Regulatory compliance has many different definitions depending on what industry you are applying the policies to. Broadly speaking, compliance means integrating standards that follow specific requirements. Regulatory compliance is the regulations a company must follow to meet specific requirements.
Regulatory compliance is often set out by professional bodies and government. Many professions receive regular visits from their professional regulator to ensure that the business is following the correct professional standard and service. Failure to follow the correct regulatory framework can often lead to heavy financial penalties for non-compliance.
It is good practice to include a staff hand book and training manual for reference to ensure that all staff are aware and trained to an appropriate level. This will help to ensure that your business is complying with its obligations.
