Choosing the right structure for your business in the UK is essential and depends on factors such as ownership, liability, and tax implications. Common options include a sole trader for single owners seeking full control, a partnership for shared ownership and responsibilities, and a limited company (Ltd) which provides liability protection and is often preferred for its credibility and tax efficiency. A limited liability partnership (LLP) offers liability protection while maintaining the flexibility of a partnership. The chosen business structure will affect your tax responsibilities, consulting with an accountant can help decide on the most suitable structure.

The most suitable financing approach depends on your individual circumstances. An accountant can help in evaluating the advantages and drawbacks of each option. For instance, using your own personal finance is typically the simplest method for funding a business, preserving full ownership.

Alternately, you may choose to fund your new business with debt finance, such as a new business start-up loan or a bank overdraft. You may even qualify for a new business grant to help fund the new venture.

It’s advisable to maintain a clear distinction between your business and personal bank accounts.

For a sole trader, ideally, you should have two separate accounts: one dedicated to your regular business transactions and another designated for personal items.

Limited companies should have their own separate bank account in their own name and you should avoid making any personal transactions from this bank account.

As a business owner, it's crucial to maintain records of all transactions. You should keep your bank statements as well as any invoices and receipts for business transactions. Records need to be kept for 6 years so consult your accountant before destroying any records as they may still be needed.

For comprehensive guidelines on record-keeping practices, refer to HMRC's website.

While you don't need to be an accounting expert, having a basic grasp of financial terminology is beneficial for interpreting your financial statements. The three primary financial statements to focus on are the balance sheet, profit and loss statement, and cash flow statement.

The balance sheet provides a snapshot of your business's financial position at a specific point in time.

The profit and loss statement summarises your business's revenues, costs, and expenses over a period of time and shows your net profit or loss.

The cash flow statement tracks the flow of cash in and out of your business over a period of time.

Typically, your VAT number arrives within 2 to 4 weeks after registration through HMRC's online portal. However, occasionally HMRC may request additional information regarding your trading activities, potentially extending the processing time.

Dividends are distributed profits, so you can take one when your company has generated sufficient profit (or retained profit carried forward from previous years). It is important not to take too much money out of the business so it is best to talk to your accountant before taking a dividend as there can be additional taxes to pay if there are not enough reserves in the company to take a dividend.

A broad range of business expenses can be claimed as long as they are wholly and exclusively for the purpose of the trade including travel/transport costs, necessary tools or equipment, and relevant legal fees.

Travel expenses can be claimed for temporary workplaces but not permanent ones. If you've been working at the same place for over 24 months, accounting for more than 40% of your working time, it's deemed a permanent workplace.

Self Assessments can be completed after the tax year ends on April 5th. They need to be filed with HMRC by the following January 31st for online returns, or the earlier deadline of October 31st for paper returns.

A Director's Loan Account (DLA) is an account on the balance sheet of a limited company that tracks the financial transactions between the company and its directors, which are not classified as salary, dividends, or expenses.

The Directors' Loan Account increases when you raise a dividend, run a payroll, personally pay for company expenses, or deposit personal funds into the company account. It decreases when you withdraw personal funds from the company account or receive income from invoices personally. It tracks the amount owed to or from the director of the company.

As the director, it's money that you are borrowing from the company, so you will subsequently have to settle the debt.

Invoices are legal documents and cannot be deleted. You can cancel an invoice by issuing a credit note. This is standard practice in accounting systems.

You can pay yourself whatever you like, provided the company has enough money to cover the salary. However, for tax efficiency, many directors of limited companies take a small salary, topped up with dividends from the company. It is best to speak to your accountant about your salary and dividend policy to make sure you are as tax efficient as possible.

If you're awaiting your VAT number, one option is for clients to pay the owed amount without VAT. Once you receive your VAT number, you can issue a revised invoice. Another option is to reissue invoices within 30 days of obtaining the VAT number.

Eligibility for SMP depends on factors like contract type and length of service. Rules and regulations govern SMP application and duration.