Now is one of the best times in which a new business could be launched. Business confidence is increasing, new finance is becoming available and the government is keen to encourage new business by lending a hand.
Grants and loans
As well as traditional lenders such as the high street banks, finance can now be raised by new methods including crowdfunding, where your business idea is pitched to potential investors on a website. The Government also funds ‘Start Up Loans’ via its delivery partners, which come with mentoring too. https://www.startuploans.co.uk/
It is often the case that someone new to business will lack the required expertise in certain areas, such as marketing, sales or finance. Several organisations have been set up to help entrepreneurs get their business up and running. Some work on a non-profit basis, some may ask for a small stake in your company in lieu of payment.
The ’Seed Enterprise Investment Scheme’ is probably one of the most generous tax breaks that has ever existed. An individual can invest in a new company and get 50% of their investment back via a reduction in their tax bill. Further incentives include a deferral of Capital Gains Tax and bad debt relief if the investment doesn’t work out. It is high risk for the investor but gives a good incentive to provide finance to new businesses.
Business structure and record keeping
It can be tempting to keep costs down by not taking professional advice when you first set up in business, but this could end up costing in the long run. Most good advisors will be happy to provide an initial consultation without charge – this could help you decide whether you should set up a company or register as a sole trader. You’ll also want to know how to keep a record of your income and expenditure so that you can keep track on profits and meet your obligations for HMRC when it comes to doing your first tax return.
Have you recently started a business?
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