Are you planning on starting up a business? someone said on the radio the other day.
There are a few important technical details that you will have to address when you begin, such as registering for VAT, applying for a trademark, and choosing a business account. Here is some information that you may find helpful.
VAT or value added tax as its known is a tax businesses charge on the goods or services that they supply in the UK or the Isle of Man.
It’s also charged on some goods and services that come into the UK from outside of the EU as well as on all goods and services that comes in from EC countries.
VAT is charged on:
The sale of new or used goods
Sale of services i.e. beauticians or mechanics
Admission prices for entrance to shows or buildings
People who are self employed and provide any of the above services.
1) If your taxable supplies were over £73,000 last year. (Taxable supplies are any goods that have VAT added to the price).
2) If sales of your taxable goods or services over the next 30 days will be more than £73,000.
3) If you will make a relevant acquisition of £73,000 or more in the next 30 days. (A relevant acquisition is one bought from a VAT registered supplier in the EU).
Should you need to register for VAT you will have to do so with the HMRC. This can be done online, through the phone or by a visit to your local HMRC office.
A trademark is a sign, image or logo that differentiates your business and the goods and services you provide from others. To register a trade mark you have to contact The Intellectual Property Office (IPO).
Registering your trademark has an array of advantages. It gives you a mark that no one else can use and may help people differentiate your product from others.
To apply for a trade mark your mark must follow certain guidelines. Guidelines include whether the trademark is one that is associated commonly in your line of business or one that perhaps describes your product.
If it meets these recommendations then you can apply for a trade mark. Applications can be made in writing oronline.
One of the most important things about business accounts is that they keep domestic and business income separate – a very important factor for being able to see your accounts in a clear and concise fashion.
When choosing a business account the first thing to determine is how many deposits you take a month, how many cheques you write and the amount you deposit and withdraw from the account. Examine the last statement you have to determine this. You will then know what sort of business account you need.
After deciding, book a meeting with your bank to discuss your needs. When going to the bank bring the relevant documentation. You will probably meet the business manager at the bank who will discuss your requirements.
You will probably need to bring a form of ID, proof of your home address and headed paper showing the details of your business to the meeting. You may also need to bring the incorporation details if you are a limited company.
Banks offer different rates and services for business accounts so the best thing to do is to shop around.
Confluence, temporary installation appropriating an existing fountain and water, galvanized steel pails, mirror, paint and photo decals, 14 feet diameter x 30” high. National Botanic Garden of Wales, UK. 2003
PS: On Seeing is not a commercial series, but in the event that it results in a sale, participating artists and gallerists are invited to donate at least 10% of the proceeds to a charity of their choice.
Chief Executive Guy Laurence declared, “Around 50 million people carry a mobile so the potential for charities and individuals to raise additional money is very real and exciting. Whether you’re watching a friend run a 5k or at you’re at your kid’s school concert, you will now be able to give on the spot. Fundraising will never be the same again.”