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LITRG message to all those starting up a new business and would-be entrepreneurs – pay attention to your tax and accounting responsibilities.

Background

On 6 December, the UK will be celebrating Small Business Saturday in recognition of all those who help to promote economic growth, innovation and development through their micro-organisations, and bring wealth to the community.

Help for small businesses

This is your opportunity to promote your business and also to get support through the many events taking place. You can find information on the Small Business Saturday website, which has further details of workshops to attend, Internet live streaming and sharing forums, question-and-answer sessions and more.

If you are already in business or considering starting up a small business, you will need to be on the ball with your record keeping and accounts and be one step ahead of the taxman! The good news is that the Low Incomes Tax Reform Group (LITRG) provides tax information and guidance to help you – start by looking at the ‘Tax Basics’ section of the LITRG website.

Employed or self-employed?

There are some grey areas as to whether people are employed or self-employed, so do read the LITRG’s self-employment guide to check your working status. Assuming that you are self-employed, you will need to get to grips with other useful information in this section of the LITRG’s website, such as how to:

• register your business for tax and national insurance with HM Revenue & Customs at the right times
• keep accurate and sufficient records
• work out if you have a profit or a loss
• understand what allowances you are entitled to
• learn more about VAT and when to register
• make sure you do not miss a payment or tax return deadline

and so on.

Entitled to tax credits?

You should also check whether you are entitled to claim tax credits while running your own business.

Conclusion

Enjoy being your own boss and do not get bogged down with the rigours of the administration requirements. By being prepared and well-organised, you can relax in the knowledge that you are adhering to the tax rules – it is one less thing to worry about in the world of a small business.

Useful links

Small Business Saturday website
LITRG Tax Basics
LITRG self-employment guide
LITRG tax credits guide