Why should I register my company?
The reason to register your company is to reduce the chances of any nasty surprises from HMRC – if you’ve not registered instead of paid the right amount in taxes, you will be hit having a hefty fine along with a backdated bill for that full amount you borrowed from.

You need to to subscribe for sure types of trading activity. By way of example, if your business sells alcohol or perhaps you wish to operate as a street vendor, you’ll need a specific license one which just legally trade.

If you are considering employing any staff members, you’ll have to register as an employer with HMRC. Don’t forget that you’ll should also take out employer’s liability insurance, as this is a legitimate dependence on any organization with one or more employee.

Even though there’s more admin involved, many reasons exist the reason why you might want to register your business like a limited company with Companies House. If you’re looking to make a brand, registering this way means you can reserve and protect your reputation. Operating like a limited company also reduces your personal financial liability, should things go wrong.

If you’re unsure by what is required of your business, it’s worth talking with a financial advisor for guidance.

Is my hobby a small business?
There’s normally a blurred line when it comes to differentiating from your hobby plus a business. Quite simply, should you be making money from your hobby or side hustle, then you’ll should register being a business with HMRC, in case you do business from home and don’t have business premises.

You have to register when:

Any trading or professional business activity takes place
Services or goods are purchased or sold
Income is taken and profit is done
Any items are bought to trade and make a profit
Any interest rates are earned
You’ll definitely must register your small business in case you start employing staff or looking at business insurance, therefore it is smart to get this sorted immediately. Once all of the admin is sorted, you can then move your small business premises or start conducting interviews to defend myself against staff.

However, you won’t should register your organization with HMRC if you’re earning less than ?1,000 per tax year from the business.
For details about business registration services view our web site