Business Tax for Start-Ups
If you are starting up in business, it is important to have a thorough understanding of what your tax implications will be.
That’s where Worcestershire Business Central can help as we provide the guidance and signposting you need to ensure you understand your tax obligations when setting up on your own. To get help now you can call our team on 01905 677 888 or make an enquiry here.
Tax Concerns for Start-Ups
Even the formation of your new start-up business can have implications on the tax consequences – for example will be you be a sole trader or a limited liability company?
We’ve summarised the main tax concerns below:
- Are you going to be self-employed and do you need to register for Self-Assessment?
- Will you need to be VAT registered?
Your start-up business will need to register for VAT if your total taxable turnover exceeds the current VAT registration threshold
- Can you claim Capital Allowances?
You can claim capital allowances when you buy equipment, machinery or vehicles to use in your business. You can deduct some or all of the value of the item from your profits before you pay tax.
- Will you have to pay on Capital Gains?
When you dispose of business assets that have increased in value you may be taxed on the gain you have made. You won’t have to pay Capital Gains Tax if all your gains in a year are under your tax-free allowance. However, you decide to structure your business, there is some excellent advice on the GOV.UK website.
Need more information?
If you have any questions about your business tax obligations as start-up business, please contact Worcestershire Business Central today for guidance and support.