Young people starting a business

Young people starting a business is no longer impossible with today’s technology advancement. Many young kids now have their own smartphones and have access to the internet. They can start their own business using that device. The question is, how a kid can start a business.

Let me give you an example. I took my daughter to a Youth In Business workshop. After the workshop, my daughter told me that she does not have to go out to look for a job during the summer school holiday anymore. She can be her own boss straight away. Last Summer, she tried to look for a job in the local area. She did not get one. She was upset because the feedback she received was that she has no work experience and too young (13 years old).

I run a test to see if it is possible for a child who knows how to use a smartphone and a laptop able to set up an online store herself. The answer is yes. I set up a tortoise t-shirts company from scratch in 3 hours including creating a design for the T-Shirts.

Young people would like to use a limited company for business must be at least 16 years old of age This is because the UK company law says to be a company director, you must be age 16 and older. Using a limited company for business involve yearly continuos legal filings with Companies House such as confirmation statement and company accounts.

Help and support for young entrepreneurs

The UK government provide lots of help and support to young people starting a business aged 18 to 24 helping them to kickstart their businesses. The help includes access to finance like startup loans and one year of mentoring.

An organization called The Prince’s Trust run an Enterprise Programme for young people starting a business too. This program is designed for young people aged 18 to 30 years old. Likewise, you could access a startup loan up to £5000 and also mentorship.

There is nothing to lose for young people to set up their online store to make money for themselves. Go for it.

Contact Companies House

Contact Companies House if you have any questions about UK companies and limited liability partnerships (LLP) incorporation procedure and legal filings requirements. They are the governing body for businesses trading as limited companies and partnerships in the United Kingdom.

Broadly, Companies House administers and maintain the public records of private and public limited companies. In addition, they also administer statutory filing of limited liabilities partnerships.

In other words, they make sure companies and partnerships submit their Confirmation Statement, annual accounts and other compulsory legal documents on time for public record.

Companies House’s contact details are as follows:

Hotline: 03031234500
Mini-com: 02920381245


Companies House Cardiff

Crown way
CF14 3UZ

Companies House Edinburgh

Fourth Floor
Edinburgh Quay 2
139 Fountainbridge

Companies House London

Ground Floor
80 Petty France

Companies House Northern Ireland

Second floor
The Linenhall
32-38 Linenhall street

Documents for Companies House

Generally, your company and limited liability partnership must submit the following documents to the Registrar of Companies. This includes dormant companies and non-trading companies. Additionally, all documents must comply with the Companies Act 2006.

Usually, Companies House would send reminders to your registered office address when your filings become due. For this reason, it is important you update your registered office with Companies House if your existing registered office address no longer valid. For example, you recently moved to a new office. You are required by law to notify Companies House of this event by law. For this purpose, use the form AD01 to update your registered office address.

Normally, you can either file this form online using the web filing service or by post. For online filing, you would require your company’s authentication code. You must keep this code safe and do not disclose to anyone.

If you have lost your authentication code, you may request the code again from Companies House.

On the other hand, if you would like to send your company accounts by post, send it to one of the companies house office listed above. For example, if your company’s registered office is in England, then send your Signed company accounts to either Companies House in Cardiff or London office.

Be prepared for Brexit no deal

Be prepared for Brexit no deal, it is no long to go now. The Brexit date and time is 31 October 2019 at 2300, UK will be officially not part of the EU. This would not change no matter what, according to Prime Minister Boris Johnson. So the only outcome we are waiting for is, whether there is deal or no deal.

While we wait for the Brexit outcome, the UK government has created an online checker tool to help UK businesses to get ready for Brexit on 31 October 2019. The checker tool is very easy to use. You just need to answer the questions and the checker tool will retrieve the relevant information and also recommendations on what to do.

Work permit or Visa for your staff

For example, if you have staff from EU countries working in your UK business, you may need to check if your staff need a work permit or visa to continue to work in your UK business after Brexit. Generally, EU nationals want to continue living in the UK after Brexit, they must either apply for a settled status under the EU settlement scheme or apply to become a British Citizen. The EU settlement application is free. There is an one time application fee for British citizenship application.

Business travel to Europe after Brexit

Besides, if you frequently travel to the EU for business purposes, you must follow the travel to Europe after Brexit rules. For example, make sure your passport has at least six months before expiry.

Another thing, if you travel to Europe by car. You must put a GB sticker on the back of your car, even if your number plate already shows GB with a Euro symbol. You could get a fine if you do not have a GB sticker when you need one. Read more about driving in the EU after Brexit and GB sticker here.

The checker tool make your life very easy to know what you need to do to be prepared for Brexit no deal. Use it, it is a free tool.

Choose your accountants wisely

Concise tips to choose accountants wisely to work with you on your business.

Accountants’ pricing

It is important to obtain couple of quotes from different accounting firms to compare the prices so that you are aware of the market rate and avoid being overcharged. Usually, accountants firm charge their clients by the hour. They will provide you with a quote based on the nature of your business assignment.

Ask the accountants:

  • How many people would be involved in your company’s affairs?
  • What are their charging rate?
  • How often they will issue an invoice to you? monthly or as and when they complete your assignment.
  • Do they give credit terms, say 30 days from invoice date?
  • Would they communicate with you if they foresee the work involved is going to exceed the original quote given? You do not want to be quoted a fee of £1200 then being given a final invoice of £2000 to pay.

Some accountants firm offer fixed fee accounts packages to limited companies. If you are just starting up your business it is best to go for fixed fee accounting package as you know exactly how to pay your accountants. Usually, your accountants would also take care of your confirmation statement filing with Companies House.

Accountant’s response time

Ask the accountants what is their response time within the firm? for example, they would reply to clients in 24 hours is their practice norm.

Would they be anyone else that you could contact if you could not get hold of the person in charge of your assignments?

Accountants’ specialist areas in business

Find out the accountants’ core competency. For example, if you have questions involving international tax affairs, would they be able to handle or how would they able to assist you to get the result?

The size of the accountants’ firm

Ideally, small to medium-sized accountants are suitable for small to medium-sized businesses.

Large companies are best to go for the big accountancy firms like PWC, KPMG, Deloitte and Ernst & Young and many more.

The attitude of Accountant in charge of your company affairs

It is very important that you have a rapport with the accountant that you would be regularly dealing with. Whether you feel comfortable with the person or with the way he/she handles your assignment.

Let take an example, if you are an impulsive person and you like to get things done fast, you would not be compatible to work with an accountant that has an attitude of managing its clients’ affairs on strictly first in first out basis.

If you are a positive thinking person, you may find it frustrating to work with an overly prudent accountant who comes across almost negatives.

We believe in when there is a will, there will be a way in achieving whatever we want in business and in life. In other words, we can make the impossible possible. Choose your accountants wisely is the way to forward.

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