5 Boring But Important Things You Need To Know About Running A Business

So you’ve started a business! Congrats by the way… but now it’s time to think about the important but boring things that will make sure you are staying on the right side of the law. 

Here’s 5 boring, but oh so important things you need to know about running a business..

Register With HMRC

Our friends at the HMRC say you should register at the earliest opportunity. But, there is a deadline. Legally you must register by the 5th October after the tax year you became self-employed. So if you started your business in August 2021, you need to register with HMRC by 5th October 2022.
 

It’s pretty easy and can all be done online over at https://www.gov.uk/register-for-self-assessment/self-employed. You’ll need your government gateway details and some information about your business.

What Kind Of Company Are You?

 You’ll need to decide what kind of company you are and then tell the government… Being self employed doesn’t necessarily mean you’re a sole trader. But chances are, if you work for yourself, by yourself… you’re probably a sole trader. But there’s a few other options to choose from.

If you work with someone else… you’ll need to register as self employed but not as a sole trader. You’re probably in a partnership.

But then there’s also limited companies.. these are a little more complicated and it means that as well as being the owner of a company, you’ll be an employee too. Your tax and national insurance will be different and you’ll need an accountant.

Business Insurance

You might think you can get away with not having it… but let me tell you. Business insurance is important to have whatever size your business is. Business insurance will protect you against the everyday risks that come with running a business. It can cover you against theft, accidents, damage legal fees and so much more. There’s loads of different types of business insurance depending on your needs. One of my favourite places for business insurance is Dinghy.

Tax, VAT and other fun stuff

The type of company you are will dictate what taxes you pay. But as a good rule of thumb, you should be putting away 20% of your revenue for taxes. So make sure you take this into account when you price your products and services.

Paying Into A Pension

This is so easy to forget, but you gotta look after future you! So it’s super important. When you start out it might seem crazy to put money into a pension when you can barely afford to live now. But even if it’s just £10 a month to begin with, then that’s a start. My favourite way to pay into my pension is through PenFold. They offer flexible options for freelancers and you can easily transfer old workplace pensions to them so everything is in one place.

So there you have it.. 5 painfully boring but extremely important things you need to know about running a business.

If you aren’t bored yet, read more of my blogs. I have lots of content that will help you grow your business.