Business compliance

By Tolley
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The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Business compliance
  • Self assessment and NICs for self-employed individuals
  • Self assessment and NICs for partnerships and limited liability partnerships (LLPs)
  • Corporation tax self assessment
  • New employers
  • Construction Industry Scheme (CIS)
  • VAT registration
  • Voluntary registration
  • Form 64-8 ― tax agent authorisation
  • Ongoing tax compliance obligations

Business must consider both their one-off compliance obligations when the business commences, and their ongoing requirements. The extent of a business’s tax compliance obligations depends on many factors, including:

  • the type of entity
  • the size of the business
  • how many employees (if any)
  • in some circumstances, the type of work undertaken, eg construction
  • the type of assets in the business
  • existence of any share reward schemes

This guidance note summarises the main tax compliance obligations for new businesses. There is also an HMRC online tax forum and dedicated webchat service  for small businesses and the self-employed which may be useful for initial HMRC help.

Self assessment and NICs for self-employed individuals

A sole trader must notify HMRC that he has started in business as soon as the business commences, at Register your new business with HMRC .

There are a number of types of taxpayer and organisation which cannot register using this service. Instructions for these groups to register are found as you progress through the screens.

Self assessment and NICs for partnerships and limited liability partnerships (LLPs)

The following forms should be used to register the members of an LLP / partners of a partnership with HMRC who are not the nominated partner:

  • Self Assessment: Register a partner for Self Assessment and Class 2 NICs (SA401) 
  • Self Assessment: register a partner for Self Assessment if they’re not an individual (SA402)  (this form is still available to print and post)

Members / partners need to complete these forms when registering a new partnership or as partners of a partnership, regardless of whether

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