The accounts side of things
Now the money is rolling in (hopefully), but it needs to be accounted for. If your turnover exceeds £64,000 in any 12 month period or less it will be necessary to register for VAT, which means that if your goods are standard rated 17.5% of your sales (or whatever is the prevailing rate) will be paid to the Customs and Excise.
You will of course be able to claim the VAT you have paid on your purchases. You will also, after the first year's trading, be required to submit accounts to the Inland Revenue, unless you wish to receive a very high tax assessment. The best thing to do is to take a professional attitude, and retain a good accountant right from the start.
Not only will he advise you on how to keep your books, and keep you straight with the Customs & Excise and Inland Revenue people, he will also offer you sound advice on operating a viable business. |
