Are you thinking of taking the plunge and starting your own business? If yes, make sure you are aware of what you must do.
First of all decide the entity in which you will trade. The most common business structures are sole-trader, partnership and limited company and I would urge you seek professional advice as to which one will suit you best in order to avoid any costly mistakes in the future.
Your must register with HM Revenue & Customs for taxes straight away in order to avoid incurring any penalties. If you are thinking of employing someone you will also require a PAYE scheme. Registering for VAT may also be something you have to consider although during the 2016/17 tax year the compulsory registration threshold is £83,000.
Whichever entity you choose you will be expected to maintain proper records of all your trading activities and prepare a set of accounts after each accounting year end upon which your tax and national insurance liability will be calculated.