Choose the Right Structure for your CompanyOne of the most important decisions is going to be determining the legal framework of your business. Whichever legal entity you go with, it will have a significant impact on your taxes and the laws you must abide by. The three most common structures are:
- Sole Proprietorship
- Private Limited Company / Personal Service Company
Create a Good Business PlanMany people overlook writing up a good business plan in their excitement for their new company. However, this will only waste valuable time and money and will ultimately need to be done at one time or another. You should construct a cohesive and logical plan to set up a successful business. It can help you manage each aspect of your business and give you the time to amend and make any corrections as you see fit before it is too late; a business plan will give you direction to help bring your business to life.
Effective Payroll Systems and SoftwareHaving payroll solutions and software in place is going to be a lifesaver for your company. Company payroll is a regular process which takes on the task of paying all staff members and dealing with their taxes, such as income tax, national insurance and student loans. Utilising the right payroll solution will help you to avoid human calculation errors and promote the success of your company. A payroll system is generally one of the single largest expenses for many companies. However, it is vitally important in making sure all your funds are looked after and calculated correctly. Furthermore, it is very common for smaller businesses to make mistakes on their payroll each year, which can result in unpaid taxes, missed payments, penalties from HMRC and more. Additionally, an effective payroll system can help you manage umbrella companies you work with, saving you an abundance of time and effort.
How Does it Work?The way a pay roll system works in general, is as follows:
- Working out how much the company owes each employee every month
- Determining how much each person owes in income taxes and UK National Insurance
- Successfully delivering a payslip and a pay cheque
- Ensuring the company pays sufficient taxes based on income and revenue
- Helps with worker retention through more efficient business processes