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Incorporation is the process by which a new or existing business registers as a limited company. A company is a legal entity with a separate identity from those who own or run it. The vast majority of companies are limited liability companies where the liability of the members is limited by shares or by guarantee.
A business cannot operate as a limited company until it has been incorporated at Companies House under the Companies Act 2006. Establishing your business as a company means the directors are required to file certain documents every year such as annual accounts and a confirmation statement. They must also inform Companies House about any changes, such as the appointment or resignation of directors or a change to the company’s registered office.

CIS stands for Construction Industry Scheme and it affects contractors and subcontractors who work in a sector. Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).
The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
Contractors must register for the scheme. Subcontractors do not have to register, but deductions are taken from their payments at a higher rate if they’re not registered.

Company accounts are a description of the financial performance of an organisation for 12 months. Every year, they are prepared for filing income tax returns and consist of a balance sheet, profit and loss statement, and cash flow statement.

Annual accounts are usually due to be filed with Companies House 9 months after the company’s financial year end.

Corporation Tax is a tax that companies pay on their profits from doing business, investing or selling assets. Corporation Tax is paid on all your profits including profits made abroad if your company is based in UK. Corporation Tax should be filed once a year, 12 months after your accounting period of Corporation Tax ends, paid – 9 months and 1 day after your company’s financial year end. Corporation Tax rate depends on the size of profits and type of business i.e. unit trusts and open-ended investment companies pay 20%, whereas companies whose profits don’t exceed £50,000 pay 19% and companies with profits over £250,000 pay 25%. (please note rates are as of 2023)

VAT is a value added tax, added to most products and services sold by VAT registered customers. Businesses must register for VAT if their VAT taxable turnover is more than £90,000. You can also choose to register if your turnover is less than £90,000.

There are different type of VAT schemes:

Standard VAT accounting scheme – under this scheme businesses must report VAT on quarterly basis.

VAT Flat Rate Scheme: a simplified way of calculating VAT for small businesses with a fixed percentage of turnover.

VAT Cash Accounting Scheme: a way of reporting VAT based on when payments are received and made, rather than on invoices.

VAT Annual Accounting Scheme: a way of reporting VAT once a year, with advance payments based on estimated turnover.

VAT retail schemes: special schemes for retailers who sell a large number of low-value items.

VAT margin schemes: special schemes for businesses who sell second-hand goods, works of art, antiques, or collectibles.

A business model serves as a critical blueprint for how a company intends to operate and generate profit. Unlike a detailed business plan, which covers various aspects of the business, a business model focuses on the core elements that drive revenue and sustainability.

A business model outlines how the company will make money. It identifies the products or services the company intends to offer, the target market, and the anticipated costs.

By establishing a clear business model, companies can make informed decisions about product types, labour, marketing strategies, distribution, pricing, and customer payment method

The business model helps validate essential aspects of the business, including activities, resources, customer relationships, revenue sources, and expenses.

A well-defined business model sets your company apart from competitors. It ensures that customers understand your value proposition and why they should choose your products or services over others.

Payroll is the compensation a business must pay to its employees for a set period and on a given date.

The payroll process can include tracking hours worked for employees, calculating pay, and distributing payments via direct deposit or cheque.

However, companies must also perform accounting and record-keeping, and set aside funds for National Insurance and unemployment taxes.

Calculating payroll involves many components and can be very complex.

Payroll information must be submitted to HMRC on or before the employee’s pay day.

Personal tax is a tax that individual pays on their income. It includes tax on wages from employment, on profits from business, on returns from investments (e.g., bank interest, dividends), on the sale or gift of valuable assets (e.g., house, shares), on rental incomes and more.

Seed Investment Scheme is an initiative set up by the UK government in 2012 is an investor relief scheme aimed at getting private investors to invest in very high-risk, early-stage businesses by offering significant tax breaks, making seed investment a much more attractive investment option. In turn, it is easier for new-born businesses to get hold of the initial investment they need to get off the ground, making the UK an attractive spot for new business ventures.

Budgeting & Forecasting

Cashflow

Management Accounts

Start-up & Business Loans

Directors Insurance

Bank Accounts

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