The benefits of having a virtual office are numerous including having a professional telephonist taking your calls during office hours, having a prestigious postal address and more importantly saving you time and money by letting you concentrate on your business. Should you need to meet with your clients you can ‘rent’ office space at hourly rates ranging from small office seating 2-3 people to conference rooms seating 8-10 people.

If you consider that a virtual office may suit your business needs then Starting My Business can offer virtual office services from as little as £49.95 pcm. For more information visit the website.

VAT is charged on both sales (output tax) and on purchases and expenses (input tax). In order to charge VAT, traders must be registered as only VAT registered traders are allowed to charge VAT on the supply of taxable goods and services. An individual, a partnership, an unincorporated association, e.g. trust or charity or a limited company carrying on a business is defined as Taxable Person for VAT purposes and any one of these with annual sales in excess of £56,00 is obliged to register for VAT. If the company’s turnover is less than £73,000 it is possible to register voluntarily for VAT and in every case it is important monitor the turnover of the business as in addition to the tax payable there is a penalty for late registration To register for VAT, a business must fill in Custom & Excise VAT 1 form which will ask information about the business, its activities and the directors. VAT forms are available form Custom and Excise website http://www.hmce.gov.uk/business/vat/vatregist.htm

VAT law covers all types of supply of goods or services (outputs), whether of a revenue or capital nature. Before VAT can be charged the following conditions must be met:
_ There must be a supply of services or goods within the UK.
_ The supply is made in the course of furtherance of business.
_ The supply must be made by a taxable person.
Most supplies attract VAT at the standard rate of 20% and others (insurance, lotteries and health and welfare etc) are classed as exempt.

VAT paid on services and goods (inputs) by a registered person can be reclaimed in the following circumstances:
_ Services or goods are purchased in order to make taxable supplies.
_ The business has a VAT invoice from the supplier of services or goods.
_ The business receives the benefit of the goods purchased.
Input tax also includes VAT on the acquisition by a taxable person of goods from another EC member state and payable or paid by the same person on the importation of goods from outside the EU. In practice a business will pay Vat on its purchases and charge customers VAT on its sales – the difference between input and out put tax is the amount of VAT due to Custom and Excise. All businesses and organisations registered for Vat are obliged to maintain a VAT account showing all VAT deductibles (input tax) and VAT payable (output tax).

Specific rules are laid down as to the form and content of tax invoices and both supplier and recipient are legally obliged to keep VAT invoices. All registered persons and businesses must issue a VAT invoice unless the supplies are exempt or zero-rated. Copies of all tax invoices issued and received must be retained for at least six years unless a shorter period (normally no less than three years) is agreed with Customs and Excise. A tax invoice must show:
_ Date of issue
_ An identifying number (usually a sales invoice number)
_Tax point (date when services/goods were supplied)
_The name, address, and registration number of the supplier
_The name and address of the person to whom the goods and services are supplied
_The type of supply by reference to categories e.g. sale, hire, rental, purchase, lease, etc
_ A description of quantity and supply
_ VAT rate and VAT chargeable for each supply
_ The rate of tax, and the amount payable, excluding tax
_ The total amount payable excluding tax
_ The rate of any cash discount offered
_ The total VAT payable

Where the tax-inclusive value of supply is not more than £100, the supplier may issue a simplified form of invoice giving only the following details Name, address and registration number of the retailer, Date of supply, A description, adequate to identify the goods or services supplied, The total amount payable including tax, The rate of tax at the time of the supply. VAT invoices are to be issued within 30 days of the supply. Where a credit or debit note is required, it should be issued within one month from the date of error or overcharge. Anyone supplying goods or services direct to the public is not obliged to supply a tax invoice unless the customer requires one.

Every quarter a VAT return (form VAT100) is issued and must be submitted to Customs and Excise. The certificate of registration issued by Custom and Excise will provide the exact dates on which a business must submit a VAT with the first period commencing upon registration. VAT returns are to be submitted to Custom and Excise within one month of the end of the relevant quarter together with any VAT payable. Where a business is not able to pay the VAT due, it must still submit a return together with a written request of a compromise programme of payments. Businesses with regular repayments may make monthly returns and those using the Annual Accounting Scheme need make only one return per year two months after the end of the scheme year.

A default occurs if Customs and Excise has not received the return and all the VAT due by the due date. The relevant date is the date that a cheque is received. Should the due date fall on a non-working day, payment must be received on the last preceding working day. A cheque must be correct in all respects and not post-dated for the payment to be considered made. Where a return is sent late or without the full payment a default surcharge arises expect if it is the first time the business is question is in default. Then, if during the following twelve month period VAT due or returns are outstanding, a surcharge of £2% will be imposed. Penalties may also be imposed where there has been a serious under declaration on the VAT return, the business has not registered for VAT or where a trader not registered for VAT has issued unauthorised invoices.

Custom and Excise have a right to enter and inspect a business without search warrant if there is a reasonable belief that taxable supplies are being made and also to make control visit to ensure that sales have been correctly declared. During such visits, Custom and Excise officers can demand documents and information from the business and remove samples of goods to determine their VAT treatment. Custom and Excise can also bring criminal penalty proceedings for production of false statements and documents, failure to provide security for future VAT payments, obstruction and bribery of Custom and Excise officers, fraudulent evasion of VAT and for conduct where there is a knowing intent to evade VAT or which must have involved an offence. Several new measures are being introduced, amongst which are extensions of powers to demand security from a business believed to be involved in false use of VAT registration numbers, missing traders, or deliberate or persistent insolvency. Additionally, for those involved in chain transactions of goods or services, where VAT is evaded by a member or members of the chain, frequently referred to as Carousel fraud, members of the chain may be held jointly and severally liable for unpaid VAT. Both measures come in from 10 April 2003. From 16 April 2003 Customs will require higher standards of evidence for input tax deduction in respect of certain categories of goods such as alcohol, road fuel, telephones and computers. Further measures include the imposition of tax points in respect of continuous supplies of services between connected parties from 1 August 2003, a requirement from 9 April 2003 to carry out apportionment at source of input tax where land and buildings are used both for business and non-business purposes, and additional measures regarding the sale of new freehold commercial buildings.

As VAT is applicable all across EU and is constantly being harmonised, Irish VAT procedures are very similar to the UK ones. In Ireland you are obliged to register for VAT if you are a taxable person and your annual turnover (the amount of your receipts excluding VAT) exceeds or is likely to exceed €50,789 in respect of the supply of goods or €25,394 in respect of the supply of services.

To register for VAT individuals setting up in business with an expected turnover of €127,000 or less must use registration form STR, for individuals or partnership the right form is TR1 and TR2 should be used if you are trading as a company. These forms are availablefrom the Taxes Central Registration Office, Arus Brugha, 9-15 Upper O’Connell Street, Dublin 1 or you can telephone the Revenue Forms & Leaflets Service at 1890 30 67 06 or you can pick them up from any tax office.

The standard rate of VAT in Ireland is 21% and this rate applies to all goods and services that are not exempt or liable at the zero or reduced rates. Reduced rate of VAT (13.5%) applies to, buildings and building services, certain fuels, certain newspapers etc. 4.3 %reduced rate of VAT applies to livestock, live greyhounds and the hire of horses. Zero-rated goods and services include exports, certain food and drink, oral medicine, certain books etc and empted goods and services include financial, medical and educational activities.

Standard VAT returns (VAT 3 form) are to b filed bi-monthly. Each taxable period is a period of 2 months beginning on the 1st day of January, March, May, July, September or November. Any payments due must be filed along with the return between the 10th day and the 19th day of the month following the end of the two-month period. Please note that as of September 1st 2002, 1% interest per month is charged on all outstanding VAT, which is not paid within the statutory time limits (any tax due must be submitted with the return by the due date as stated previously). As in the UK, it is also possible to file one annual return. Completed VAT return forms should be sent to Office of the Collector-General, Sarsfield House, Francis Street, Limerick

For further information and guidance, please visit www.revenue.ie.
If in any doubt with any aspect of VAT, whether in Ireland on in the United Kingdom, please seek professional advice.

What we can do for you ? – In basic terms, for a relatively small sum we can assess your trademark proposal before committing to a full and expensive TM3 Trademark Application, help design or re-design your trademark and even integrate the trademark into your current printing and advertising materials. To find out more, please telephone or e-mail us enquires@startingmybusiness.biz

There are, of course, more formal advice networks available in the form of professional business advisers. These advisors have either expert general business knowledge or expertise in a particular function of business such as marketing or funding. Your bank and/or accountant can also offer valuable information but do keep in mind that their advice is not necessary impartial and may well be aimed at promoting their own services. Lastly but not least do not forget your family. The fact that you are starting a business will affect them too and you will need their support through good and bad times. Whom ever you seek advise just remember that getting advice from as many people as possible is the best thing to do. Organisations mentioned below will give you a good starting point.

Starting My Business
Offer a full range of online business services ranging from electronic company formation to accountancy, credit card acceptance, virtual offices, domain name registration, e-commerce, website templates and e-mail, business printing etc. However, apart from the actual provision of services Starting My Business also provide a range of ‘Free’ services to their Business Club Members including; Business Consultancy, Comprehensive Company Law information, Legal and Dept Collection Documents plus a monthly Newsletter. Telephone: 0845-1300 060
www.startingmybusiness.biz

Streetcards Design Consultants
Offer a full design service or gallery of designs to choose from online for your business cards, including upload your own if you have a logo already. Need something custom designed such as a unique corporate identity or any leaflets, brochures or stationery? Please contact them directly and speak to the design team. Bespoke website design is also available, including FLASH…
Telephone: 0871 2207470
email: customerservice@streetcards.com
online gallery: www.streetcards.com
The Bag Lady is a business information portal supporting all women business-owners (large or small business) by providing information on where to go for a range of business resources including grants and finance. www.the-bag-lady.co.uk

The British Association of Women Entrepreneurs BAWE is a non-profit professional organisation for UK based women business owners affiliated to the world association of women business owners Les Femmes Chefs d’Entreprises Mondiales. www.bawe-uk.org

Aurora Women’s Network / Busygirl
Aurora (formerly the Busygirl network) is a growing network for the economic advancement of both entrepreneurial and corporate women.
www.busygirl.com

Everywoman
Online network and resource provider for women business owners.

http://www.everywoman.co.uk

Women at Work is an online directory of services offered by women in business with the aim of being a ‘one-stop shop’ for potential clients interested in services offered by women locally or nationally.
www.womenatwork.co.uk

Network Ireland is an organisation for women in business, arts and the professions to exchange ideas and to increase their business contacts. www.networkireland.ie
Prowess is a UK-wide trade association for the promotion of women’s enterprise support aiming to create an environment where equal numbers of women and men are starting and growing businesses.
www.prowess.org.uk

Get Started For Women
BT website offering helpful and relevant information to women starting up their own businesses.
www.btconnect.com/public/getstarted/conlinks/womenhome.htm

Business Link can give advice and guidance on setting up a business and are happy to have face-to-face meeting with you. They have plenty of information and resources and also links to other organisations which could be of assistance. Advice line:0845 600 9006; minicom 0845 606 2666
www.businesslink.org

The National Business Angels Network (NBAN) Business angels are wealthy individuals who invest in start-ups and growing companies in return for equity in the company. The investment can involve both time and money depending upon the investor www. nationalbusangels.co.uk.

The New Entrepreneur Scholarship (NES) scheme provides new entrepreneurs in disadvantaged areas with business support, training and start-up funding. An individual or ‘scholar’ on the scheme first gets a skills need assessment and personal development plan and then 90 hours of business support When it is decided by the scholar and their advisor that the time is right to start a business, up to £3,500 is available to help – the money can be used for start up expenses like machinery, stationery and office supplies. www.nfea.com

Shell LiveWIRE was launched in 1982 and is sponsored by Shell UK Ltd. It promotes enterprise amongst 16-30 year olds by encouraging them, and their advisors, to see starting a business as a viable career option. The Shell LiveWIRE hotline is 0845 757 9252 is www.shell-livewire.org

The Dublin Business Innovation Centre offers a helping hand for enterprise and innovation by providing assistance, on a selective basis though, to prospective entrepreneurs, start-up businesses and established small businesses with potential for growth, exports and employment creation. www.dbic.ie

Enterprise Ireland, the government organisation charged with assisting the development of Irish enterprise, offers comprehensive online resources including news, a discussion list, grants information, events guide, newsletters and lots of useful Irish

The Prince’s Trust (www.princes-trust.org.uk) aims of self-sufficiency, enterprise, and community participation. Through the Business Programme, a young person with a sound plan and motivation but no funding can receive a range of support during the critical early stages of business. The programme is aimed at those between the ages of 18 and 30 who are under-employed, unemployed and have not been able to secure financing through banks and provides business mentoring support, low-interest start-up loans, test marketing grants, and other support (self-help kits, seminars, and free advice lines). In Scotland, business start-up support is through the Prince’s Scottish Youth Business Trust which is aimed at 18-25 year olds. For more information, please visit www.psybt.org.uk.

Get Finance is an Internet service designed to match borrowers to the right funding sources. It has a comprehensive Directory of UK finance companies and web sites including government grants for business start-ups in different regions of the United Kingdom.
www.getfinance.co.uk

Business Funding
Financial information
www.business-funding-uk.org.uk

ADVANTAGES
1. Owner has complete control over all business affairs. Simple to administer and operate.

2. Long established business mechanism

DISADVANTAGES
1. No distinction between personal and business entities and therefore, no protection for one’s own personal assets. There is no tax distinction between personal and business income, often leading to an inefficient use of potential tax savings.

2. A Sole Proprietor is directly liable for the actions of his employees.

3. Action taken by creditors is often quicker against an individual than against a corporate entity.

4. The physical movement of the entity will always correlate with the physical movement of the owner. Generally, most tax benefits are, particularly where ‘foreign’ transactions are involved, accrued from distinguishing between a person and his business.

5. Save where the individual’s reputation is established such entities are not considered as’ reputable’ despite the increased exposure.

6. They cannot avail of the 12.5% corporate tax rate being universally introduced in 2003, which is already available to smaller limited liability companies.

Approval by the Secretary of State is confined to the use of certain words or expressions in the company name. Approval does not imply approval of a company’s aims and objectives.

The following words imply national or international pre-eminence:
British – approval of this word in your company name will depend on how it is used. Normally the Secretary of State would expect the company to be British owned. You would need to show that the company is pre-eminent in its field by providing supporting evidence from an independent source such as a Government department or a trade association.

If the word ‘British’ is qualified by words that do not describe an activity or product, for example by using a ‘made-up’ word, then evidence of pre-eminence is not necessarily essential. But you would be expected to show that your company is substantial in relation to its activity or product and that it is eminent in its own field.

England, English, Scotland, Scottish, Wales, Welsh, Ireland or Irish – if you wish to use these words as a prefix to your company name, the rules are similar to those for ‘British’. You will usually be given approval to use any of these words as a suffix if you show that the company has its main place of business in the country concerned. If you want to use one of these words because it is a surname, you will usually be given approval if the company name includes forenames or initials.

European – names, which include this word, will not be approved if they unjustifiably imply a connection with official bodies of the European Union. If there is a genuine connection with an official body, the name may be allowed if the appropriate body supports the application.

Great Britain or United Kingdom – if you wish to use these expressions as a prefix, or to use ‘of Great Britain’ or ‘of the United Kingdom’ as a suffix, then the criteria are the same as for ‘British’. If the words are used as a suffix to the name, they are normally allowed without difficulty. Using the initials ‘GB’ or ‘UK’ in your company name does not require approval.

International – if you wish to use this word as a prefix, you need to show that the major part of the company’s activities is in trading overseas. If you wish to use it as a suffix, then approval will usually be given if you can show that the company operates in two or more overseas countries.
National – the criteria for use of this word are the same as for ‘British’.

The following words imply business pre-eminence or representative or authoritative status:

association, federation or society – if you wish to use one of these words, your company would normally be limited by guarantee. Each member should have one vote and the constitution should contain a non-profit distribution clause. This provides that any profits should be used to further the objects of the company and not be paid to the members as dividends.

authority, board or council – if you want to use any of these words, you should ask us for advice. If the company is to be registered in Scotland, contact Companies House in Edinburgh.

institute or institution – approval for use of these words is normally given only to those organisations which are carrying out research at the highest level or to professional bodies of the highest standing. You will need to show us that there is a need for the proposed institute and that it has appropriate regulations or examination standards. You will need evidence of support from other representative and independent bodies. The criteria are fully explained in the questionnaire you will receive when you apply for a company name that includes one of these words.

The following words imply specific objects or functions:

assurance, assurer, insurance, insurer, re-assurance, re-assurer, re-insurance or re-insurer – if the name is needed for an underwriting company, we will normally seek further advice. However, if you want to use the name for a company that will only provide insurance services, then you should include the appropriate qualification, for example ‘agents’, ‘consultants’ or ‘services’, in the name.

benevolent, foundation or fund – names that include any of these words will normally be refused if they imply that the company has charitable status. If the company is limited by guarantee and has a non-profit distribution clause in the memorandum & articles , then the name will normally be approved.

charter or chartered – names that include these words will be refused if they unjustifiably give the impression that the company has a Royal Charter. If the words are used to qualify a profession, we will seek the advice of the appropriate governing body before considering whether to give approval.

charity – approval for a name including this word normally depends on the company being registered with the Charity Commission. A company’s objects should be charitable and the memorandum should contain a non-profit distribution clause.

co-operative – any company wanting to use this word should normally be limited by guarantee with each member having one vote, and include a non-profit distribution clause in the memorandums & articles. However, a company limited by shares may also be permitted to use ‘co-operative’ in its name in some circumstances. In either case, we may ask you to provide more detailed information before giving approval.

group – if use of this word implies several companies under one corporate ownership, then you will need to provide evidence of association with two or more other British or overseas companies. If the name clearly shows that the company is to promote the interests of a group of individuals, then the name will normally be approved.

holding(s) – a company wishing to use this word must be a holding company as defined under section 736 of the Companies Act 1985.

patent or patentee – a name including either word will only be approved if it does not contravene the Copyright, Designs and Patent Act 1988.

post office – we are likely to seek advice on applications that include these words.

register or registered – we treat every application for use of these words on its merits. Generally, we will seek advice from the appropriate governing body if names that include these words are linked with a professional qualification. The name will not be registered if it unjustifiably implies a connection with HM Government or a local authority. If such a connection actually exists, the name may be allowed if the appropriate body supports the application.

Sheffield – if you wish to use a name that includes the word ‘Sheffield’, we will need to establish details of the company’s location and its business activities. We will also consult the Company of Cutlers in Hallamshire.

stock exchange – names including this expression will normally be refused unless there are special circumstances.

trade union – names including this expression will normally be refused unless they conform to legislation relating to trade unions.

trust – the word ‘trust’ can be used in many different senses. Each application is dealt with on its merits but the main uses of this word are as follows:

charitable trust – these companies need to have charitable objects and a non-profit distribution clause in the memorandum & articles of association. You will be asked for confirmation that you have made, or will make, an application for registration as a charity with the Charity Commission. Scottish companies wishing to use the expression ‘charitable trust’ will need to apply to the Inland Revenue in Edinburgh as the Charity Commission has no jurisdiction in Scotland.

educational trust or artistic trust – such companies should have a non-profit distribution clause in the memorandum & articles of association and the name should reflect the nature of the trust. The promoters should be of high standing in the field.

family trust – such companies must be non-profit distributing and the objects must reflect the nature of the trust. Names of family trusts will usually be approved if the name as a whole identifies the company as such.

financial trust or investment trust – if you wish to use these expressions, you will need to provide a written assurance that substantial paid up share capital or other funds will be achieved within a reasonable period after incorporation.

pensions or staff trust – the names of such companies must include the name of the parent company, and the objects of the company must include the operation of pension funds.

Companies House Link
This information has been extracted from the Companies House website for your convenience – For more detailed information please click on the link above. Please also note that certain sensitive words and expressions may incur an additional charge as special wording is often required together with additional electronic file submissions. Where you have reason to believe that you will be using a sensitive word please contact a “Starting My Business” Consultant for further advice.

Whichever bank you go to, they are likely to advise all businesses – including sole traders – to run a business account separate from a personal account and to entice new businesses many banks offer free use of a business account for a specific period of time. In most cases you will also be able to take advantage of free telephone or Internet banking, discounts from certain suppliers or free legal advice. Apart from the fact that running your business accounts separately makes sense, the main benefit of a business account is the relationship manager based at the local branch together with access to a range of extra services. You should however remember that bank charges for business accounts are likely to be higher than personal account charges. For more information, please click on the bank logos to visit their websites or use the numbers below:

◊Abbey National – Free banking for 18 months, (terms apply)
Telephone: 0845 607 0666

◊Alliance Leicester – Free banking for 12 months plus business planner software and access to a business advisor (terms apply) Telephone: 0800 587 0800

◊Barclays – Free business banking for 18 months if a personal account is also opened otherwise 12 months applies (terms apply) Telephone: 0800 515462

◊The Co-Operative Bank – Free banking for 18 months (terms apply) Telephone: 0845 721 5215

◊NatWest – Free business banking for 18 months if a personal account is also opened otherwise 12 months applies (terms apply) Telephone: 0800 028 2677

◊Bank Of Ireland – Whole range of services available for start-ups free for the first two years (terms apply) Telephone: 01 618 7430

There are also some banks that are promoting information and launching exercises specifically tailored to the needs of women in business including Bank of Scotland, Barclays and Royal Bank of Scotland. These banks have special sections of their websites dedicated to women in business offering information, advise, research results and resources.

Besides general industry and geographical research it is important to find out as much as you can about your potential clients/customers – Who are they? How many? Where are they? What do they currently spend and what are they willing to spend? How often are they likely to buy your product or service? What do they earn? Who do they buy for and how do they make that decision? When do they buy? What is the preferred method of payment? Why do they buy? What would make them loyal to one provider (you)? You also need to analyse your competitors, find out their weaknesses and strengths and then compare them with your business. Find out the identity of your competitors, where they are based, what kind of products and services they offer, what their prices are and obviously who their customers are.

Whereas you are not required to have any specific qualifications to start in business and your experience might well be all you need to be successful, the environment in which you do business in constantly changing which means that the knowledge and skills you need are changing too. Having accounting and management knowledge will definitely give you an edge and most likely will in the long term also save you money. The following will give you a quick overview of some of the different general qualifications and training routes available to entrepreneurs.

The Institute of Directors arranges courses ranging from 1 to 3 days. They are designed from a director’ viewpoint and attending, besides adding to your knowledge, is an ideal forum for expanding your personal network. It is also possible to qualify as a Chartered Director through Institute of Directors. For more information, please visit www.iod.com.

The Confederation of British Industry in conjunction with CLT Professional Training has also developed a range of training seminars designed to provide practical solutions and to help businesses with the challenges they face. CBI’s courses are aimed at board members, senior executives, directors and managers. For more information, please visit www.cbi.org.uk

Those of you who already have a degree might want to consider a postgraduate degree in business. The MBA (Master of Business Administration) degree is probably the worlds best-known and most widely recognised postgraduate degree. It is a professional degree intended for those who work in business and management. The MBA opens doors and provides the modern manager with the tools needed to identify new business opportunities and threats. There are number of different MBA programs and as their content differs a great deal it is important to fully consider the type of experience they provide, their cost, accessibility, duration etc and plenty of careful research will be needed in order to make the right choice. For more information about MBA courses and course providers, please visit http://www.mbainfo.com.

It is good to keep in mind that whereas the general entrepreneur does not necessarily need any special training, the more specialist your services or products offered are, the more stringent the training and experience requirements and your customers expectations will be. If, for example, you are planning on operating as a solicitor, doctor or architect you and your staff are expected to have professional expertise to deal with your customers requirements and to be able to offer professional advise. The same would apply if, for example, you were to practise as a tailor or were to open a pharmacy or a specialist cheese and wine shop. Business Link provides a Training Directory and whereas it won’t help you gain a professional qualification, it is designed to provide information about business related courses and events. Please visit www.businesslink.gov.uk for information about on-line courses, seminars and events in your area or just to search their national database of courses.

* Startups.co.uk