Pay Tax or not to pay Tax, that is the question...lol

We are starting out in the business very soon, have received the pitch, got a trailer in mind, food hygiene courses completed and the money available (luckily) to start up without to much of an initial risk.

However the question is, as long as we pay our NI contributions annually(our choice) are we breaking the law if we set up and sell our food without either filling out a self assessment tax form, or register as a business etc.

As im sure all of us would prefer not to declare our earnings but how would they find out if we just set up and sell?

Possibly a very bone question and apologies if i sound a bit stupid, but, have you ever been on the Government Tax website....you need to be a rocket scientist to understand it.

Thanks in advance

Leigh

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Mar 19, 2009
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Get a Good Accountant to Save You Money
by: Anonymous

Hi Leigh,

This is a grey area as many people starting this and similar cash business either do or don?t pay their taxes. But the way I see it you want to create legitimate credible business which you can grow into an asset, that one day you may want to sell.

Paying taxes and keeping accounts is an important factor and is part and parcel of the business. Also will you a better chance to either sell or raise funds for your current business if nee be.

Not to mention the experience you will gain which could be used in future businesses

Also when you keep accounts you will know exactly what profit your making and where the money is going. So that you can do something about it, and hopefully make your business more profitable.

It sounds like a pain and most people do struggle with it, but long term you will actually benefit from paying taxes and having financial accounts.

If you get a good accountant they can actually save you money and take care of the accounts side for you - which what I did when I first started out.


A lot of people choose not to bother with any of the above and spend a lot of time worry about the tax man, but again it?s up to the individual.

Anyway congratulations on getting this far with your business and I wish you the best of luck


Regards
David

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