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By valero
- In Uncategorized
These are not good times for those looking to start their own business in Spain and looking for business opportunities in England is therefore an interesting option
Hence, many people look for alternatives to start their business in countries where the bureaucracy is not a discouraging. Let us sum up briefly the essentials of what you need to know to set up your business in England.
Everybody knows Spanish bureaucracy as one of the greatest obstacles for entrepreneurs, as well as economic uncertainty and the tax burden. Not a very exciting outlook for those who want to set up a business in Spain.
The first step is to know the kind of business you want to create. The two more common in England are the sole trader and the public or private limited society.
As a sole trader, you will be fully responsible of what it may happen to your business. But if you decide to take part of a limited society, you will therefore share this responsibility with your partners. Either way, however, you must know some requirements.
You will subsequently find the necessary steps you need to set up your business as a sole trader in England. Click here to read our article about how to set up a limited company.
Sole trader
Maybe the most thrilling option but also the riskiest. The UK government’s official website suggests that you ask yourself some questions to know if you are ready to start your business there.
Are you aware of the legal risks involved and your future tax duties? Do you think you will be able to keep all your accounts and a complete record of your activity? Will you be able to find a convenient name for your business? If you can positively answer all these questions, you are ready to take the next step.
Are you aware of the legal risks and your future tax duties? Do you think you will be able to keep all your accounts and a complete record of your activity? Will you be able to find a convenient name for your business? If you can positively answer all these questions, you are ready to take the next step.
Set up your business in England: first steps
First, pick the right name for your business. Remember not to refer to other brands, be offensive or contain words as ‘limited’, ‘ltd’, ‘limited liability company’ or similar.
Secondly, you will need to choose an accounting method for your company. There are two available options in England: cash basis, that is, you only record income or expenses when you receive money or pay a bill. Or traditional, i.e. you record income and expenses by the date you have invoiced or billed them.
Your next step you will need to take is to apply for a National Insurance Number. Once you have got it, you can register as a sole trader by registering for Self Assessment. Please read carefully the required terms.
Fourthly, the UK government’s official website provides a quiz to help you to determine the kind of business that you are planning to start. After filling it in, a calculator will be available on Self Assessment sections to help you to estimate your earnings. That will help you to find out what tax bracket you would be in.
Beware of the taxes when you set up your business in England
As it happens in many countries, England’s taxation system is based on a set of income brackets on which to apply withholding tax, so we strongly encourage you to get informed and be familiar to them.
It is important to bear in mind that besides the legal tax obligations, there are also exemptions that could exempt you from paying taxes. For instance, if you are separated and pay a pension to your ex-spouse or to your children under 21.
Finally, do not forget that the UK government’s help portal offers tools as video conferences, instructional seminars and a business support service. And a list of account managers as well who can help you on your first steps as an entrepreneur in England.
In conclusion
Remember that what we offer you is a very slight guide. The aim is to give you an initial idea of what you may face if you’d like to start a sole trader business in a country like England, as it would be impossible to detail everything in such less words. We can only wish you the best of lucks in your new adventure!
As it happens in many countries, England’s taxation system is based on a set of income brackets on which to apply withholding tax, so we strongly encourage you to get informed and be familiar to them.
