If you're ready to take the plunge and start your own business in Rochdale, congratulations! But before you order your business cards or open the doors, there are a few important steps to take. Here's a quick guide which covers the factors you have to consider when starting your own business.
Do I need to register my business?
Yes. If you're setting up as a self-employed individual or sole trader, you'll need to register with HMRC. If you're forming a limited company, you'll also need to register with Companies House. It's a good idea to get this sorted early, so you're operating legally and keeping the tax man happy.
How do I keep track of money coming in and going out?
Keeping on top of your income and expenses is vital. Even if you're starting small, setting up proper bookkeeping systems will save you headaches later. You can use accounting software such as Xero or QuickBooks or even a spreadsheet if things are simple at first. Just ensure that everything is logged and easily accessible.
What about tax?
If you're self-employed you'll need to submit a Self Assessment tax return each year (or corporation tax if you're a limited company). This includes tracking your income and claiming any allowable expenses. You might also need to make payments on account, so it's worth speaking to an accountant to understand how the tax system works before you get started.
If you intend to run your business as a self-employed individual, you may have to comply with HMRC's new tax initiative, Making Tax Digital (MTD) for Income Tax. These new rules are dependent on your gross annual income and will take effect in April 2026. You can read our online guide to these changes here.
Do I need to register for VAT?
Not straight away. However, if your sales exceed £90,000 in any 12-month period, VAT registration with HMRC becomes a legal requirement. Some businesses choose to register voluntarily to reclaim VAT on purchases. Either way, it's something to keep an eye on as you grow.
I'm hiring staff - what do I need to do?
You'll need to register as an employer with HMRC, set up a payroll system, and manage tasks such as National Insurance, income tax, and workplace pensions. It takes a bit of admin time, but it's all manageable with the right help or payroll software. Or you can outsource all your payroll tasks to an accountant.
How do I choose the right business structure?
There's no one-size-fits-all. You might start as a sole trader because it's simpler, but move to a limited company as you grow. Each has its pros and cons in terms of tax, liability, and paperwork. It's worth getting advice from an accountant before making a decision.
What else should I consider when starting a business?
Here are a few more things to get on your radar:
• Business insurance (public liability, employers' liability, professional indemnity, etc.)
• Registering and complying with data protection (if you handle customer data)
• Creating a simple business plan to map out your goals and finances
• Keeping an eye on your cash flow is vital to the success of your business and can make or break you
• Marketing - getting your name out there, even if it's just a basic website and a presence on social media
Still excited about starting a business?
Starting a business is exciting, but it also takes planning and organisation. The good news? You don't have to do it all at once. Get the basics in place, build steadily, and don't be afraid to ask for advice. If you're based in Rochdale and thinking about starting up, give DWilkinson&Company a call. We've helped hundreds of entrepreneurs establish their businesses and supported them in growing into thriving companies.
How can DWilkinson&Company help?
The first thing we will do is listen to your business idea. We'll ask you relevant questions about what you want to do, why, and how you intend to get started. Based on our experience, we can offer you personalised advice tailored to your specific needs and goals.
We can also provide practical support, whether that involves training on accounting software or handling your bookkeeping needs. If you're employing staff, we can handle your payroll for you, ensuring everything is done correctly, and your employees get paid on time.
For more information about our support for business start-ups, including a detailed breakdown of our services, please visit this link.
Book a free consultation
To help you get started, we offer a free consultation meeting. This allows you to discuss your business ideas with us initially and determine if we are the right fit for you. To book a free consultation, please call us at 01706 249058 or email office@dwco.co.uk.
