Need to register for VAT and start providing your customers or clients with VAT invoices? You must ensure that they contain all of the necessary details if they're to be acceptable to HMRC. You may need to know how to produce VAT invoices for sales to international clients and when to send your VAT invoices.

You can register even if your taxable turnover isn't above the VAT registration threshold of £90,000 a year, which enables you to reclaim VAT on things you buy for your business. The government website GOV.UK explains how to register for VAT.

Here are ten key facts you should know about VAT invoices.

1 You must be registered for VAT to issue VAT invoices

You can only issue VAT invoices once you are registered. They can be in paper or electronic form, but you must retain copies of all VAT invoices you send to your clients or customers – even if you cancel them or make a mistake when you produce one and need to send a replacement. You must retain copies of all purchase VAT invoices that you're given for things you buy for your business. Without these, you are not allowed to claim back the VAT.

2 A VAT invoice is not always needed

You're not required to issue a VAT invoice if:

• your invoice is only for exempt or zero-rated UK sales
• you're gifting goods
• you sell goods under a VAT second-hand margin scheme
• your client or customer operates a self-billing arrangement.

3 To reclaim VAT, you need a VAT invoice

You can't use an invalid invoice, pro-forma invoice, statement or delivery note to try to reclaim VAT, it must be a bona fide VAT invoice provided by your supplier.

4 You don't always have to send a full VAT invoice

For most transactions, you will send a full VAT invoice to your clients or customers. Alternatively, you can send a:

• "modified invoice" for retail supplies costing more than £250 or a
• "simplified invoice" for retail supplies below £250 (and other supplies after 1 January 2013)

5 Full VAT invoices must contain certain information

If you need to send a full VAT Invoice, it must include the following:

• a unique VAT invoice number that follows on from your previous VAT invoice
• your business name and address
• your VAT number (it begins with the letters GB and is followed by nine numbers
• date
• tax point or "time of supply" if this is different to the invoice date
• the customer's name/trading name and address
• description of the goods or services supplied
• total amount excluding VAT
• total amount of VAT in GDP
• price per item excluding VAT
• quantity of each type of item
• discount rate per item if applicable
• VAT rate charged per item (if something is exempt or zero-rated you should make it clear that no VAT has been charged on these items).

A modified invoice is similar to a full invoice, but it also includes the VAT inclusive price of products/services and the total amount including VAT.

6 Simplified invoices need less information

If you issue a simplified VAT invoice, you only need include:

• a unique VAT invoice number that follows on from your previous VAT invoice
• your business name and address
• your VAT number
• tax point or "time of supply" if this is different to the invoice date
• description of the goods or services supplied
• VAT rate charged per item (if something is exempt or zero-rated you should make it clear that no VAT has been charged)
• Total amount including VAT^*.

^*If items are charged at different VAT rates, this should be detailed for each.

7 Payment dates and amounts matter for 'cash accounting'

If you use 'cash accounting' (ie a financial record-keeping/bookkeeping method where revenues and expenses are recorded on the date they're received or paid, not when they were incurred), you must stamp a VAT invoice with the amount of cash paid and the date.

8 There are invoicing time limits

VAT invoices must usually be issued within 30 days of the date of supply or payment (if your business is paid in advance).

9 Rules are different for foreign currency invoices

You do not have to show all amounts on your invoices in sterling. If you issue VAT invoices in a foreign currency or language, you must:

• show the total VAT payable in sterling on your VAT invoice if supplied in the UK
• provide an English translation of any invoice within 30 days if asked to do so by a visiting VAT officer.

10 There are different options when converting foreign currency invoices to sterling

To convert to sterling when producing a VAT invoice you can:

• use the market selling rate at the time of supply
• use the European Central Bank's rate
• use HMRC's period rates of exchange (the rates usually remain the same for each calendar month)
• apply to HMRC to use a different method to account for the VAT.

Whether you set up as a sole trader or a company, registering your business name is a key part of complying with regulations, establishing your brand and protecting your business for the long term

Choosing a business name can be a fun part of setting up a business but it is not without its challenges. Before you commit to a business name, you'll need to check if anyone is already using that name or something very similar. It's also important to do a trade mark check to make sure no-one has trade marked your business name already; even if they are not registered as a company this could cause problems in the future. Finally, you need to ensure that your business name is available as a domain name so you can get the web and email addresses that you need.

Many would-be business owners worry about registering a business name. If you incorporate (ie form a private limited company), you cannot register a business name that is already in use. Furthermore, only private limited companies can use the term Limited or Ltd in their names. You can use the Companies House name availability checker to make sure the company name you have chosen is available.

Before you register a company name with Companies House, you must also ensure that your business name complies with government rules. Some words cannot be used unless you've been granted official permission. These include words suggesting the business is of: national importance (eg British); special status (eg association); a particular function (eg trust) or a specialist activity (eg health centre). Never use swear words or other terms that might offend.

Sole traders or those in partnerships have the option to trade under their personal names or trade under a business name but they don't need to register the name with Companies House. However, if your business name causes customers to confuse your business with another you could be guilty of "passing off", which is an offence. It is far better to make your business name distinct - search for your preferred business name online to see if there are others using a name like yours.

How to register a limited company

You can register your company with Companies House online, by post, using an agent or using third-party software.

You'll need three pieces of personal information about yourself and your shareholders, such as National Insurance number, passport number or mother’s maiden name. You will also need to appoint at least one director and their name and address will be published on the Companies House website.

You need three documents to register a company:

• Prescribed particulars explaining your business structure;
• A memorandum of association, a legal declaration in which all shareholders agree to start the limited company;
• Articles of association, the rules about how the company will run.

Once you’re registered your company, you’ll get a Certificate of Incorporation with your company number on it and the date of its formation. Online registration takes 24 hours and costs £12; postal applications take up to ten days and cost £40. You can use the company registration process to register for Corporation Tax and PAYE at the same time.

How to register your business as a sole trader

There's no need to register your business with Companies House if you are self-employed but you will have to register with HMRC; all you need is your National Insurance number. If you are setting up a partnership, you have to register a nominated partner with HMRC who will be responsible for completing the company tax returns. If you are a contractor or a subcontractor in the building trade, you’ll also need to register for the Construction Industry Scheme (CIS).

How to register your business name as a trade mark

Registering your business name as a trade mark is not a legal requirement, but it’s a good way to protect your business name. When you register your trade mark, you’ll be able to put the R symbol next to your brand - to show that it’s yours and warn others against using it. It also means you can take legal action against anyone who uses your brand without your permission.

You can search for trade marks on the UK Intellectual Property Office’s (UKIPO) website. A trade mark can be a business name, brand name, word, logo or colour or a combination of these.

Registering for a trade mark with the UKIPO can take a few months. You’ll need a unique name for your business; you can’t trade mark generic words, such as plumber or accountant. Making up a brand name - such as Ikea or Google - can be a good way to create a distinct business name that can be trade marked.

When you register your business name as a trade mark you’ll have to choose the class or classes of goods or services you operate in - such as vehicles, alcoholic beverages or education - from a list of 45 classes known as the Nice Classification. Your trade mark will only be protected within the sectors you select.

The trade mark application process allows time for objections. The UKIPO may have concerns about how distinctive your trade mark is. Applications are also published to allow anyone to object, for instance if they have a similar business name. A registered trademark lasts for ten years. If you want to make any changes to your trade mark you’ll have to make a new application.

How to register a domain name for your business

A domain name is the main part of your website address, eg www.yourbusinessname.co.uk. Securing the right domain name will help your business to get established online. A great domain name (like any business name) is easy to remember and easy to spell. If your chosen business name is available as a domain then that’s great news; if it isn’t you may need to find a more distinct business name. Once you’ve found a domain name that works for your business, you’ll be able to use it for both your email and web addresses.

You’ll also need to choose your Top Level Domain (TLD). This is the last part of your web address such as .com (good for businesses that operate internationally) or .co.uk (best for UK businesses with a local customer base).

It’s easy to buy a domain name from a domain name registrar such as 123-Reg, Names.co.uk or GoDaddy. You can check the availability of your chosen domain on these websites and shop around for the best prices. When you buy a domain name you are paying for the rights to use the domain for a fixed period of time. Bear in mind that prices can be extremely reasonable when you first register but may go up over time.

Self-employed workers have to pay income tax and National Insurance contributions on their earnings. Here’s what you need to know about tax if you're self-employed

If you work for yourself as a sole trader or a freelancer then you are self-employed when it comes to paying the tax you owe. Depending on how much you earn, you may have to pay both income tax and National Insurance contributions. If you have just started working for yourself, the first step is to register as self-employed with HMRC.

How much income tax do self-employed workers pay?

Income tax is only paid if you earn over a certain amount (£12,570); this threshold is known as the personal tax allowance.

Rates of income tax are the same for both self-employed workers and employees but if you work for yourself, the way that you calculate and pay the tax you owe is different. While employees pay tax under the PAYE system, self-employed workers must complete an income tax self assessment return in January every year. They must then pay the income tax and Class 4 National Insurance contributions (based on business profits) that they owe to HMRC in two instalments on 31 January and 31 July.

What is the personal tax allowance?

In the UK, you don't pay tax on earnings under the personal tax allowance.

• The personal tax allowance is £12,570.

However, if you earn over £100,000, your income tax personal allowance goes down by £1 for every £2 earned above £100,000.

What are the UK income tax bands?

Tax payers (including the self-employed) pay income tax at specific tax rates on earnings within specific income bands. Income tax bands can change from one year to the next.

UK income tax rates and bands are:

• 0% tax on income up to the tax threshold of £12,570
• 20% tax on earnings between £12,571 and £50,270
• 40% tax on earnings between £50,271 and £125,140
• 45% on earning over £125,141

How much National Insurance do self-employed workers pay?

The amount of National Insurance the self employed have to pay changed on 6 April 2024. The self employed no longer have to pay Class 2 contributions.

Class 4 NICs are payable on yearly profits over £9,569. Class 4 tax rates and thresholds are:

• 6% on profits between £12,570 and £50,270
• 2% on profits over £50,270

National Insurance contributions are paid at the same time as income tax as part of your self assessment tax return.

When do the self-employed pay tax and NICs?

As a self-employed person, you will pay your tax and NICs on the 31 January following the end of your tax year. However, HMRC will ask for payments on account for the following year's estimated tax - on 31 January and 31 July each year. Therefore, after your first year, your tax bill may actually be 150% of the amount you were expecting, with a further 50% due in July.

What happens if I don't pay my tax bills on time?

You will have to pay penalty charges. As well as failing to complete your returns on time, you can be fined for failing to register your business when you start up (you could be fined up to 100% of the tax due in addition to any unpaid tax). It's best to register as soon as you can - it's such an easy process. You can register online using the HMRC Online Service or by calling the HMRC on 0300 200 3500.

What if self-employment is not your only income?

You have to pay tax on all kinds of income earned during the tax year. That includes any wages earned as an employee as well as any profits you make from self-employment. You also need to declare any income from pensions, rental income, trust income and interest from savings on your self assessment tax return.

What happens if I don't pay my tax bills on time?

You will have to pay penalty charges. As well as failing to complete your returns on time, you can be fined for failing to register your business when you start up (you could be fined up to 100% of the tax due in addition to any unpaid tax). It's best to register as soon as you can - it's such an easy process. You can register online using the HMRC Online Service or by calling the HMRC on 0300 200 3500.

How to pay less tax if you're self-employed

As a self-employed worker, you only pay tax on your profits - not on your total earnings. It means that you can deduct allowable business expenses from your income before you pay tax. These costs must be business-related. Making sure you claim for all your allowable expenses, will help you minimise the amount of tax you pay.

What are allowable business expenses?

Allowable business expenses include:

• Office expenses such as phone and internet, software, stationery and postage;
• Stock and materials;
• Marketing costs;
• Costs associated with running a business from your home such as a share of utility bills;
• Business premises, including rent, building insurance and utility bills;
• Business travel costs including car insurance and fuel as well as train, plane and bus tickets and taxi costs. Business travel does not include costs associated with getting from home to work and back;
• Accountancy costs, bank fees, overdraft charges and legal bills;
• Business insurance.

The government publishes guidance on business expenses; it also offers simplified expenses schemes for self-employed workers if you work from home, run a vehicle for your business or live in your business premises.

Want to start or expand your business but don’t have enough funds? A business loan could be the answer but it’s important to find the right loan for you. Here are some of the main options

There are many ways for a small business or sole trader to borrow money. It’s important to find an appropriate lending solution that does not become a burden that you can’t manage. Never forget that borrowing could put your business or personal assets at risk.

What is a business loan?

A business loan is a way of borrowing money to help your business grow or to get a start-up off the ground. Potential lenders include high street banks, online lenders and peer-to-peer lending platforms. Business loans typically start at £1,000 and can be several million pounds. Loans can be short-term (from just a few months) or long-term (up to 25 years). Interest rates are likely to be lower if the loan is long-term but as you are repaying the loan for longer you could end up paying more.

No matter what kind of business loan you are looking for, lenders will want to know what the loan is for; they will ask to see evidence of your income as well as details of how you plan to repay the loan.

Most loans work on the basis that you will repay the loan with a fixed interest rate over a fixed period of time. However, there could be penalties for missed payments or for repaying early. You can use a business loan calculator to work out the final cost of a loan before you agree to the terms.

How can a business loan help your business?

It’s often said that you need to spend money to make money. Of course, that is not always the case - many entrepreneurs start a business with little or no money. However, many others have to borrow to get the funds they need to create a viable business or to invest in a business that has potential for growth.

Common reasons to take out a business loan include:

• to get a new business off the ground;
• to expand a business;
• to buy more stock;
• to take on new employees;
• to move premises or invest in new equipment;
• to invest in new technology or a marketing campaign;
• to help with cashflow.

How do business loans work?

Most business loans work on the basis that you borrow an agreed amount of cash and pay it back over an agreed term with interest. This arrangement is what’s known as a “term loan”.

Another option for businesses is to agree a “line of credit” with your bank which allows you to borrow cash when needed (up to an agreed amount) so you only pay interest on the money you take out. However, if you go over your limit or repay late, extra fees could apply.

When you’re shopping around for a business loan, you’ll need to compare the interest rates and repayment terms offered by different lenders. Interest rates can be fixed or variable. There are pros and cons with each. A fixed interest rate can give you certainty but there may be fees for early repayment. Loans based on variable rates can be more flexible but there’s a danger that rising interest rates will make it harder to repay the loan.

Another important factor is security. Business loans are usually either “secured” or “unsecured”. A secured loan often uses assets as security. If you can’t make the loan repayments, the lender can sell the asset to get their money back. Business assets could include property, stock and machinery. Secured loans typically have lower interest rates than unsecured loans.

Unsecured loans are much harder to get and they are usually more expensive. Banks can also ask for a director’s personal guarantee - if your business is unable to repay the loan, you will be personally responsible for it.

If your business is struggling to get a loan, the government’s Enterprise Finance Guarantee scheme (EFG) could be the answer. EFG facilitates lending to viable businesses that have been turned down for a normal commercial loan due to a lack of security or a proven track record. However, participating lenders will still want to be satisfied that your business can afford the loan repayments.

What happens if you can’t pay back a business loan?

If you are struggling to repay a business loan and you miss some payments you will almost certainly have to pay late payment fees; you could also be liable for extra interest or administration fees. In the longer term, missing payments could damage your credit rating and make it harder to borrow in the future. If you fail to make a number of payments over several months, you will be seen to have defaulted on your loan. If your loan was agreed with a director’s guarantee, you will be personally responsible for paying back the loan. If you took out a secured loan, then your assets could be seized.

Where can I get a business loan?

There are more options than ever when it comes to business borrowing. It’s always worth approaching your business bank first as you already have a relationship with them.

Another option is peer-to-peer lending platforms (P2P) that match businesses that need funding with private investors looking to invest. Applications are made online and the process can be quicker than a traditional bank; lending could come from one person on the platform or from a pool of people. In other respects, P2P lending is no different from a bank loan - the lender earns interest on the loan and the small business pays it back within the agreed timeframe.

How can I maximise the chances of being accepted for a business loan?

A detailed business plan is absolutely key - backed up by evidence including company accounts, cash flow projections and realistic sales forecasts. If you use accounting software it’s easy to share financial reports with potential lenders. You may also need to show bank statements and tax returns.

You’ll have to explain why you want the loan and show how you intend to pay it back. Lenders will also ask about you and your management team, as well as investors. They will want to know how much equity you have in the business. Above all, remember that lenders are looking for a solid business that will deliver steady income.

Do I need a good credit rating to get a business loan?

Yes, lenders will look at your personal credit score to see if you have a good track record on managing finances. In fact, every member of your leadership team will need to have a rock-solid credit history. Your track record in business will also be a key deciding factor. If you run a limited company, your personal credit record will include the company accounts filed at Companies House.

How can I get a business loan as a start-up?

It can be difficult to get a loan for a new business because most lenders want to see at least two years’ of business accounts. One option is to take out a personal loan to start a business. A personal loan will be in your name; if you have difficulties paying it back it will affect your personal credit rating.

You can also apply for a government-backed Start-Up loan. The government start-up loan scheme offers loans of £500 to £25,000 to start or grow a business. It is not a business loan, but an unsecured personal loan. However, it comes with free guidance to help you write a business plan, and successful applicants get 12 months of free mentoring. Applicants must be over 18 and have (or plan to start) a UK-based business that’s been fully trading for less than 24 months. Start Up Loans charge a fixed interest rate of 6% per year. You can repay the loan over a period of one to five years; there’s no application fee and no early repayment fee.

The Growth Guarantee Scheme was launched 1 July 2024. It helps small businesses access a wide range of products from different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending. The government backs up to 70% of any facility and payment terms can be up to six years. The rate of interest, fees payable and any personal guarantees will vary by facility and lender. To qualify, you must be based in the UK,have a turnover less than £45 million and be able to present a viable business plan to lenders.

What do Apple, Subway, Virgin and Dell have in common? These businesses were all started with next to no money. If you've got an idea for a business but no spare cash, here's how you can get it off the ground

Starting a business with little or no money may not be easy but if you can find a way to create a revenue stream without start-up funding then you'll know you've found a business model that works. Here are five ways to get started.

1. Start slow with a side hustle

Starting small and scaling up is a tried and tested way to start a successful business. A side hustle allows you to keep your day job so you're not reliant on your new venture for an income. It means working evenings and weekends but it takes the pressure off while you find out if there's a market for your business idea. It also allows you to find out if you enjoy running a business. You could even try out a couple of different business ideas before you take the plunge and leave your day job.

2. Take advantage of freebies

You can find office furniture, computer supplies and other business equipment on sites like FreeCycle or look in the Freebies section of Gumtree. When it comes to building a website, sites such as Wix, Squarespace, Weebly, WordPress and GoDaddy and HubSpot offer free templates and you don't need to be an expert to create a professional website.

Market research is another important step on the road to starting a business. Desk research can cost nothing - analyse your competitors' websites, check them out on social media and see if there is a gap in the market for your idea. You can ask friends and family to try out your product and give you feedback.

Your friends and family can also be a good source of skilled labour; ask around to see if anyone can help with photography for your website or creating a logo. If you do need you pay for professional help, freelancer sites such as PeoplePerHour, Fiverr and Upwork allow you to keep costs to a minimum.

3. Choose the right business model

There are lots of businesses, especially services, that are easy to set up and have low start-up costs. These include: gardening, cleaning, tutoring, dog walking, writing and graphic design. Just about any professional consultancy - such as marketing or IT - can be established for very little outlay. And if you already have a hobby that you are passionate about such as photography, or a trade that you work in such as plumbing, then you're halfway there. You've already got the expertise and the equipment that you need to start working for yourself. What's more, the majority of these business ideas can be run from home, so you can keep your overheads to a minimum.

4. Sell online

If you want to start a business selling products, and you don't have the money for premises or to build your own ecommerce website, then your best bet is to start selling on platforms like Amazon, eBay and Etsy. These massive online marketplaces do a lot of the work for you by getting your products in front of their considerable audiences.

You don't even have to make your own products - dropshipping allows you to sell goods which come directly from the manufacturer or the wholesaler. With dropshipping, you can launch an ecommerce business without having to pay for lots of inventory; you only pay the manufacturer when the item is sold. It means you can also test out different products with no risk. Another option is to use Fulfilment By Amazon where Amazon takes care of storing and sending out your stock as orders come in.

5. Market your business for free

There are lots of ways to market your business for free using online tools and social media as well as good old-fashioned networking. It's worth using every tool at your disposal when you are starting out to get your business in front of your target audience.

Social media is a great place to start. If you're starting a professional consultancy business, you'll want to sign up for LinkedIn and use it to reach out to prospective clients. Instagram, Twitter and Facebook are all fantastic tools to help you spread the word about your business - whether you are selling to consumers or businesses. The key is to make connections with influencers as well as potential customers.

There are lots of other ways to improve your visibility online for free. Start by making sure you're listed in all the free online directories as well as Google listings. Search engine optimisation (SEO) is also vital if you want to get your website close to the top of the rankings. Make sure your web copy includes the keywords and phrases that people use when they are searching for a business like yours. It's also worth reaching out to journalists on your local newspaper, radio or TV station to tell them about your business - if you can suggest a good angle, an interesting story or a photo opportunity, you have a good chance of getting some free publicity.

If you want to start a business - whether you’re operating as a sole trader or setting up a limited company - you'll need to register your business. We explain the steps you need to take to comply with government regulations

How to register a limited company

The first thing to do is choose your company name. Before you register your business, you’ll first need to check your company name is available with Companies House. It’s easy to do this by using the Companies House name availability checker. You must also ensure that your business name complies with government rules. Your company name cannot be too similar to another company name or a trade mark and it must not be offensive or contain sensitive words or phrases.

The next step is to register your company online with Companies House - this applies to limited companies as well as limited liability partnerships (LLPs). You can do this yourself on the government website. You also have the options of registering by post, using an agent or using third-party software.

In order to register, you’ll need three pieces of personal information about yourself and your shareholders, such as National Insurance number, passport number, mother’s maiden name or town of birth. You will have to appoint at least one director; their name and address will be published on the Companies House website.

In order to set up your company, you will need to create three key documents:

• Prescribed particulars explaining your business structure and what each shareholder is entitled to;
• A memorandum of association, a legal declaration in which all shareholders agree to start the limited company;
• Articles of association, the rules about how the company will run, as agreed by all the shareholders and directors.

Once you’ve registered your company, you’ll be given a Certificate of Incorporation which has your company number on it and the date of its formation.

You can also use the company registration process to register for Corporation Tax and PAYE at the same time. You’ll need to register for PAYE if you’re employing staff, including yourself. If you’ve registered with Companies House by post, via an agent or using third-party software, then you’ll need to register for Corporation Tax separately. You must register for Corporation Tax within three months of registering your company.

As a taxpayer, you’ll already have a Government Gateway ID but you will need to create a specific Government Gateway user ID and password for your company when you register it.

How much does it cost to register a company with Companies House?

The cost of registering your company depends on how you register your business (digital, software or paper) and how quickly you want the service. For example, if you register online you’ll be registered within 24 hours. Postal applications using form IN01 take up to ten days. There are also different fees for registering using software or for same-day registration.

How to register your business as a sole trader

To get started as a sole trader, you need to tell HMRC that you are self-employed so that you can pay tax through self assessment. All you need is your National Insurance number. As a sole trader, you’ll need to keep records of your expenses and income and complete a tax return every year. You will have to pay income tax on your profits as well as National Insurance contributions.

You do not need a business name to trade as a sole trader although you can trade under a business name if you want to - but you cannot use the term limited in your business name unless you are registered as a limited company with Companies House. You’ll also need to make sure no-one else is trading under the business name you choose.

Sole traders are encouraged by HMRC to register as soon as possible after they start trading, but you can actually register at any time before October 5 in the second tax year after you started trading.

How to register as a partnership

A partnership business structure is similar to a sole trader set-up but with the profits shared as well as the responsibility for losses. If you’re registering a partnership you’ll need to register a nominated partner who will be responsible for completing the company tax returns. Individual partners must pay tax on their personal share of the profits. Business partnerships must be registered by 5 October in the second tax year after the partnership started trading.

How to register for VAT

Registering for VAT is mandatory if your turnover is over £90,000 a year. However, you can voluntarily register for VAT if your turnover is below this, allowing you to reclaim VAT on your purchases. When you register for VAT, you’ll be sent a VAT registration certificate which includes your VAT number and details of when to file your first VAT return and make your first payment.

How to register for the Construction Industry Scheme

You must register for the Construction Industry Scheme (CIS) if you’re working in the construction industry as a subcontractor or a contractor and you’re operating as a sole trader, the owner of a limited company or a partner in a partnership or trust. You’ll need your legal business name or the name you’re trading under, your National Insurance number, your Unique Taxpayer Reference Number (UTR) and your VAT registration number (if applicable). If you are both a subcontractor and a contractor, you’ll need to register for CIS as both.

How to register your business name as a trade mark

Registering your business name as a trade mark is not a legal requirement, but it can be a good idea if you want to stop other people from trading under the same name. When you register your trade mark, you’ll be able to put the ® symbol next to your brand - to show that it’s yours and warn others against using it. It also means you can take legal action against anyone who uses your brand without your permission.

Starting a business is exciting but it can also be daunting. Turn your entrepreneurial dreams into reality by following our guide to the practical steps you’ll need to take.

So, you’ve got an idea for a business and you’re ready to make it happen. Congratulations! It doesn’t matter if this is a side hustle or a bigger venture, there are some important jobs you need to do to ensure your new business meets all of the key legal and administrative requirements.

Of course, ticking these boxes is no guarantee of start-up success. So we’ve also highlighted some other key tasks that will ensure that your new venture gets off to a flying start.

Decide on a business name

A good business name should be original, distinctive, easy to remember and it should encapsulate what you offer. Start by brainstorming a long list of contenders, then test each one against these criteria:

• Is the name already listed at Companies House?
• Is the online domain name available?
• Is someone using that business name on social media?
• Is the name too restrictive if your business diversifies over time?
• Is it easy to read, say and remember?
• Does it stand out from the crowd in your marketplace?

Choose your business structure

The next step is to decide how you want to structure your business. These are the options:

Sole trader: If you’re self-employed and you don’t employ any staff you can operate as a sole trader. This business structure is easy to establish and you can keep all your profits after you’ve paid tax on them. However, you are personally responsible for any losses your business makes.

Partnership: If you set up a business with another person you can structure it as a partnership. This is similar to a sole trader set-up but the partnership, as well as the individuals, must be registered for tax self-assessment.

Limited company: Setting up a limited company is more complex but it can offer advantages. The company has a legal identity, separate from the owners and directors, which can protect you if your business gets into debt. A company can also offer tax efficiencies - money earned is taken out of the company as a salary and/or dividends. You are likely to need a good accountant to help you manage the company finances, including corporation tax.

Limited liability partnership: This is similar to a private limited company but responsibility is shared between partners.

Register your business

You must register a company or limited partnership with Companies House. You also have specific reporting and management responsibilities.

You don’t need to register your business if you are self-employed but you do need to tell HMRC that you are working as a sole trader and sign up for tax self assessment. As a sole trader, you can trade under a business name but you don’t need to register that name.

Get insurance

Every business needs some kind of insurance. The kind of cover you need will depend on your specific requirements. You’ll need specific contents insurance to protect stock and materials, even if you work from home. If you have premises that your customers can visit, you’ll need commercial property insurance as well as public liability cover. If you provide services, it is also worth getting professional indemnity insurance which will protect you if a customer is not happy with the service you have provided. Employers’ liability insurance is essential if you employ staff.

Apply for licences and permits

Lots of businesses require a licence or a permit before they can legally trade. These include: food businesses, taxi firms, child care providers, manufacturers, import and export businesses, hairdressers, tobacco or alcohol retailers, farms and many more. The government Licence Finder tool can help you find out what kind of licence you need for your business.

There are also government regulations that cover everything from storing customer data and selling goods online to disposing of waste. It’s up to you to make sure you are aware of the regulations that apply to your business and that you adhere to them.

Getting your business ready for launch

There are some other key steps you’ll need to take in order to give your business the best chance of success.

Do a SWOT analysis

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a useful exercise to help you understand what makes your business special and to identify the areas that you’ll need to improve on. Strengths and weaknesses will be specific to your business, while opportunities and threats relate to outside factors such as competitors and market conditions.

Write a business plan

A business plan can help you set goals and achieve them. It’s also an important tool to help bring others on board, especially if you are looking for funding.

A good business plan should include:

• A summary of what your business does
• Where it sits in the market and what makes it different
• The management structure of the business
• Marketing and sales plans
• Finances including sales projections and cashflow forecasts

Get funding

Lots of successful businesses are started on a shoestring or with a bit of help from friends and family but if you need more money to get your business off the ground there are a number of funding options.

Your high street bank may offer loans for small businesses like yours. Another option is the government-backed Start Up Loan - an unsecured personal loan of up to £25,000, with a fixed interest rate of 6% per year. The loan can be repaid over one to five years and there is no early repayment fee. If your application is successful, you’ll also get up to 12 months of free mentoring. Other funding options include grants, crowdfunding and angel investment.

Create a brand

Every business has its own unique identity that helps it stand out from the crowd. This is your brand. It’s not just important to look good as a business – you also need to be consistent in your branding to create recognition and grow a following. Key branding elements to focus on before launch include: a logo, your company colours, the typeface you use on your website, the style of photography you use, the tone of voice you use in all your communications and the words and phrases that best describe what makes your business special.

Organise your business finances

Every business needs a system for keeping records, paying tax and managing finance. One of the first things to organise is a bank account. You can use your personal account for payments if you are a sole trader although it’s a good idea to keep business and personal finances separate. If you are working through a limited company you have to set up a business bank account. Most charge a fee so it is worth shopping around. Start as you mean to go on by creating a system for recording all your income and business expenses. Subscribing to an accounting app like Xero or FreeAgent will make it much easier to send invoices and manage cashflow. If you are registered for VAT, you’ll need to use an app to submit VAT returns under Making Tax Digital. A good accountant could well save you money in the long run and will be able to advise you on how to keep business records.

Build a website

Almost every customer begins their buying journey online so a website is essential. No matter how your business operates, your customers will expect to find you online and they’ll want to get information about who you are, what you do, where you’re based, your opening times and other essential information. If you can sell your products or take bookings online, you should. A good website doesn’t have to be full of bells and whistles though. Make it simple to navigate, include calls to action and provide all the necessary information and images. Your websites can give shoppers the confidence to buy - use it to show people who you are, tell your story and share positive feedback from happy customers. Once you have a website up and running you can create social media accounts on Facebook, Instagram, Twitter and others.

And finally, don’t go it alone

There’s a wealth of free advice, help and support out there for would-be entrepreneurs:

• Find everything you need to know about starting a business on the Donut websites;
• Call the government Business Support Helpline;
• Contact your local Growth Hub - there are 38 in England. There are also business support services in Scotland (Business Gateway), Wales (Business Wales) and Northern Ireland (Invest Northern Ireland).
• Join the a small business body like the British Chambers of Commerce (BCC) or the Federation of Small Businesses (FSB);
• Connect with small business owners on Facebook or find a mentor that has experience in your sector.

It's well known that it's cheaper to keep an existing customer than to win a new one. Keeping customers engaged with your business and happy with your products and the service you provide is made simpler with CRM (customer relationship management) software. CRM can also make it much easier to find potential new customers and move them through your sales funnel and convert them into loyal, repeat customers

Simple software packages offer small businesses easy sales pipeline and customer management, while more powerful solutions add increasingly sophisticated functionality.

Here's our guide to small business CRM software and our review of some of the UK's most popular CRM software packages.

**Prices correct on 03/02/25 (limited-time offers may be available)

 

Find out more about these popular CRM software packages:

• HubSpot
• Salesforce
• Monday
• Pipedrive
• Zendesk
• Freshsales
• Insightly
• Keap
• Microsoft Dynamics 365 Sales Professional
• Zoho CRM
• Capsule

HubSpot

HubSpot offers a wide array of marketing, sales, customer service, content management and operations tools. Their Starter bundle has been designed for start ups and small businesses – but their other paid packages may be too complex and expensive for many small businesses.

Key benefits:

• free plan offers useful tools – provided you can work within the 1,000 contact limit
• 'starter' bundle offers more than enough CRM functionality for most small businesses

Disadvantages:

• quickly becomes expensive if you move beyond free or 'starter' levels

Pricing:

• free plan offering limited use of 'lite' versions of many tools
• starter customer platform from £14 per user per month
• discounted plans available for start-ups working with approved HubSpot partners (eg incubators/accelerators)

Find out more about HubSpot inbound marketing, sales and service software.

Salesforce

Possibly the world's leading CRM software, Salesforce has got it all.

Key benefits:

• small business package offers good capabilities across sales and service
• easy upgrade to more powerful versions for fast-growth businesses
• excellent analytics and customisable dashboards make it easy to track the things that matter to your business
• multiple third-party integrations
• guidance centre offers helpful tips and guidance as you go

Disadvantages:

• more complicated for beginners
• more expensive than some similar small business offerings 
• lacks lead tracking tools available in other packages

Pricing:

• 30-day free trial
• starter suite from £20 per user per month, maximum 10 users
• pro suite from £80 per user per month

Find out more about Salesforce small business CRM and contact management software.

monday.com

For small businesses with relatively simple CRM requirements, monday.com is both affordable and easy to set up and use.

Key benefits:

• easy to set up and use
• simple automation tools
• straightforward tracking of individual contacts and overall progress

Disadvantages:

• lacks the advanced tools offered by more sophisticated packages

Pricing:

• £10 - £24 per user per month, discounts for annual billing
• Free package for up to two seats (coming soon)

Read about monday.com sales CRM.

Pipedrive

Pipedrive's sales focus will appeal to many, but you'll need to integrate other tools to help you manage existing customer relationships and marketing activity.

Key benefits:

• great for results-driven sales teams
• optional lead generation tools with B2B database and online lead capturing tools
• 24-hour online support

Disadvantages:

• little support for managing existing customers

Pricing:

• £14 - £64 per user per month, discounts for annual billing
• optional lead generation tools from £32.50 per month

Read about Pipedrive sales CRM and pipeline management software.

Zendesk

If customer service is a priority, Zendesk is well worth a look – particularly if you've raised outside funding.

Key benefits:

• strong customer service functionality across multiple communication channels
• fully scalable for larger businesses but sometimes at the expense of complexity

Disadvantages:

• less well-established sales and marketing packages
• packages offering full CRM functionality relatively expensive

Pricing:

• Zendesk sales £15 - £89 per user per month, billed annually
• Zendesk service £15 - £89 per agent per month, billed annually
• Zendesk start ups customers that have raised outside funding may qualify for six months' free credit and support

Read about Zendesk customer service software and sales CRM.

Freshsales

The Freshworks family of powerful products – sales-oriented Freshsales, Freshmarketer for marketing automation, and Freshdesk for customer support – can be a good option for medium-sized businesses.

Key benefits:

• relatively easy implementation compared to some other higher-end CRM software
• nice integration across the product range
• AI-powered insights (in more expensive plans)

Disadvantages:

• can be difficult to work out which product will best suit your business

Pricing:

• free plan for basic contact management
• £7 - £49 per user per month (billed annually), discounts for annual billing

Find out more about Freshsales, Freshmarketer and Freshdesk support.

Insightly

It is quick to get up and running with Insightly, thanks to its simple setup process. It also comes packed with handy integrations.

Key benefits:

• simple setup and onboarding 
• offers all the tools you need to manage the sales process
• comes with a detailed knowledge base and comprehensive tutorials
• 24-hour support

Disadvantages:

• more expensive than other providers
• its AI capabilities lag behind rivals

Pricing:

• 14-day free trial
• prices start at $29 per user/month

Find out more about Insightly

Keap

A fully-featured CRM, sales and marketing platform – but at a price.

Key benefits:

• ease of use and time-saving automation
• integrated invoicing

Disadvantages:

• steep learning curve requiring onboarding support
• aggressive pricing

Pricing:

• 14-day free trial
• UK pricing starts from $249 per month (discounts for annual subscriptions)
• higher monthly charges for more contacts or extra users
• additional charge for onboarding coaching service

Read about Keap CRM, sales and marketing automation.

Microsoft Dynamics 365 Sales Professional

Part of the Microsoft Dynamics portfolio of business applications, this will appeal to mid-sized businesses that want to work with an integrated set of Microsoft applications.

Key benefits:

• integration with Office 365 and other Microsoft tools
• relatively easy setup for a higher end CRM solution

Disadvantages:

• need to invest time and effort in initial set-up / training
• small business version lacks data insights of higher-cost enterprise products

Pricing:

• 30-day free trial
• £65 per user per month

Find out more about Microsoft Dynamics 365 Sales Professional.

Zoho CRM

Zoho CRM offers comprehensive customer management, while the cut-down, more sales-focused Bigin will be attractive to many smaller businesses.

Key benefits:

• competitively priced Bigin offers attractive sales pipeline management functionality for smaller businesses
• customisable interface to suit your business in Zoho CRM
• easy integration with other Zoho tools

Disadvantages:

• limited integrations with third party tools, particularly in Bigin and lower-priced Zoho plans

Pricing:

• Free editions of both Zoho CRM and Bigin offering reduced functionality
• Bigin free basic plan for a single user. Paid plans £7 - £17 per user per month (billed annually)
• Zoho CRM £12 - £42 per user per month, discounts for annual billing

Read more about Bigin for small businesses and Zoho CRM sales CRM software.

Capsule

Modern, simple online CRM with competitive pricing make this a particularly attractive package for smaller businesses.

Key benefits:

• stands out for ease of use by avoiding unnecessary complexity
• good range of integrations with other software tools

Disadvantages:

• not as powerful as more sophisticated alternatives
• online only support

Pricing:

• £14 - £60 per user per month; optional marketing add-on from £7 per month

Find out more about Capsule.

It's worth checking up-to-date information on pricing and features for individual CRM software packages before making your choice. If you are looking for a higher-end solution, you may want to speak to individual providers about what they can offer to meet your particular needs.

The pricing details in this guide do not include VAT, any introductory discounts or free trials, or the more expensive 'enterprise' plans for large businesses.

What CRM software can do for your business

CRM software recognises that the more you know about your customers, the easier it is to sell to them and strengthen the relationship. CRM software does this by helping you keep track of every contact you have with the customer (or potential customer) and everything you know about them.

CRM software can be particularly helpful for larger businesses - where many different employees come into contact with each customer - and for small businesses which need to keep track of large numbers of customers and prospects.

To help you choose the right CRM software for your business, identify what you want the software to be able to do and how you plan to use it. For example:

• Which employees will use the CRM software?
• Is your focus on prospecting for new leads, managing existing customer relationships, dealing with service requests - or all three?
• What processes do you want the CRM to help with - for example, automating and personalising mailshots or analysing customer behaviour?
• How will your CRM link in with your existing customer data and IT systems?

The larger your business, the more sophisticated your requirements are likely to be: for example, you may want to be able to automate various processes. Smaller businesses may prefer a simpler solution rather than unnecessary advanced functionality and higher complexity and costs.

Running a small business can feel lonely at times. Combat the isolation and connect with other small business owners in our friendly Facebook group, the Donut Small Business Collective. 

What is the Donut Small Business Collective?

The Donut Small Business Collective is the friendly and supportive Facebook group created by the team behind the Donut websites including the Start Up Donut.

The Donut team have been passionate about helping other small UK-based businesses to succeed for more than 20 years. Our websites attract more than 3.5 million users a year. 

Who are the Donut Small Business Collective members?

Our members are UK-based start-ups, small businesses and people with a spark of a business idea - they are all welcome in the Donut Small Business Collective. Our members come from a wide range of backgrounds and their businesses cover a plethora of business sectors. Some are still in the pre-start phase and others are established firms with years of experience behind them.

What they all have in common is a desire to learn from and share experience and knowledge with other small businesses.

How will I benefit?

We’re dedicated to building a supportive and non-judgemental community where people like you can share tips and experience, ask questions and be inspired by other small business success stories.

Members get access to exclusive Q&As with our Donut experts, an offer of the week, sneak peeks of our podcasts before everyone else, the opportunity to feature as a 'business of the week' (where we go behind the scenes to learn a bit more about one of our members) and join our Friday networking.

Above all, you can join a group of entrepreneurs who are navigating the same business challenges as you. Share your problems, ask questions, and make new connections with peers who might just be able to help your business take the next step. Who knows, you might find new customers, suppliers or the answer to that burning question.

How do I join the Donut Small Business Collective?

Simple! You can join here. All you need to do is answer a couple of quick questions so we can check our group is right for you.

Are there any rules?

We want to make sure the group is a positive and supportive place for all our members. For everyone's benefit we simply ask that don't:

• Post any adverts or anything spammy. If you want to advertise your business, we have a Friday networking opportunity where you can tell everyone what you do.
• Be rude or disrespectful to other members.
• Contact group members without their permission.

Do I have to take part?

We encourage members to get involved. You're welcome to ask questions, create polls and chip in with help and advice if you think you can help another group member.

Like any networking group, you will get out as much as you put in. Some members are simply looking for the answer to a quick question from someone who has been there, seen it and done it. Others regularly contribute by answering others' questions, passing on interesting news, leads or advice or by featuring as a 'business of the week'.

There are no hard and fast rules. The group exists to be useful to all members.

So, if you have a burning question or want some advice from like-minded business owners, join us and start making connections today.