Start-ups often worry about where to start and getting everything right. This is something we frequently get asked but also something we see others receive incorrect information on. It is for this reason we wanted to clarify a few things in relation to starting out in business. It doesn’t matter whether you have already formed your company, or are just starting up, this information can be used as a referral. We encourage you to go over this information and ensure you have everything in order.
When it comes to setting up whether you are a company or a sole trader there are certain steps you must follow. It is here we also caution you on listening to non-experts. There is a common trend in some social media groups for people to provide inaccurate information. Ask yourself this – would you trust someone who wasn’t a surgeon to operate on you? No. So why listen to ‘Joe public’ giving you legal or accountancy advice.
Start-ups – registering with HMRC and/or Companies House
All start-ups in the UK have obligations to HMRC. So whether you are a company or self-employed you must look into your legal obligations.
In the case of self-employed individuals, the deadline to register with HMRC is 5 October in your second year. Although this may seem like a long time-frame it is far better to do it at the outset. The process is relatively straightforward and something most people should be able to do themselves. You can do this directly on the government’s website.
If you are setting up as a company it is important you understand the obligations and benefits. As an example, there can be tax benefits of going with a particular company structure. It is for this reason we recommend you seek advice from a qualified Accountant. Remember that having the right Accountant can also help you save money in the long run.
Information Commissioner’s Office (ICO) and Data Protection
Most start-ups will need to register with them. This isn’t a matter of choice – it’s an obligation. If you receive, use or process personal data you need to register. There may also be additional situations where you have an obligation to register with them. To find out whether you need to register visit the ICO’s website: https://ico.org.uk/registration/new
Simply registering with the ICO doesn’t mean you have fulfilled your obligations in being compliant. Steps must be in place to protect people’s data. You should also be aware that personal data isn’t just a name or date of birth. It includes all electronic data collected to track website visitors and so on.
There are steps you must put in place to protect this data. You can read more about your obligations on our GDPR compliance blog written earlier this month.
Even website developers get it wrong
Website developers are excellent at what they do but they aren’t experts at compliance. Did you know even some of the leading “build a website” platforms out there aren’t compliant? We checked a number of websites built on those platforms and not one cookie pop-up was compliant.
When it comes to cookies it is not enough to simply have a pop-up. Consent must be given to track any personal information collected.
As a start-up it isn’t just cookies you should be worried about. You also need to consider your privacy policy and how you process and collect data. Obligations include being transparent, keeping people’s information confidential and secure. Also, be prepared to securely delete personal information when asked to do.
Did you know that when it comes to data protection and GDPR ignorance is no excuse? Some offences under GDPR are what’s called strict liability offences. This means that there is no defence for not doing what is required. So why take the risk!
We offer a GDPR compliance check and we can also assist in advising what steps you need to take to be compliant.
Contracts, Terms and Conditions
We understand that quite often as a start-up you will want to do things “on the cheap”. But ask yourself this – what is protecting your company worth to you? If you download a template contract how do you know it protects your business? The answer is you don’t because no one has taken the time to understand your business and listen to your needs. So, whilst that template option might seem like a good idea now it could turn into a nightmare. You could be signing away your intellectual property rights, giving up your right to sue someone, agreeing to longer payment terms or even being sued in another country. We can guarantee dealing with those problems when they occur will cost you a lot more money than getting the documents right in the first place.
You should also take the time to know who is providing those documents. We surveyed a number of companies proving template documents and came across an alarming amount of issues. Contracts being drafted by foreign lawyers who had no UK legal qualifications; privacy policies failing to do the job and incorrect advice on GDPR including cookies.
Start-ups – bank accounts
As start-ups you can sometimes struggle to find the right account for you. Sadly there are a lot of banks that will also expect you to jump over houses to have an account with them. We can tell you this from experience but there are banks out there who can help. Whilst we don’t have personal experience of them we understand Revolt and Starling are some of the easier ones to apply to. We also understand they have excellent customer service. If you are looking at working with international client’s we can recommend Transferwise. If you sign up with this link you can also receive a free transfer.
Insurance
This might seem like one of the most obvious choices but many forget about it. As a start-up insurance isn’t something you should think about later.
Like most start-ups you have worked incredibly hard to get where you are now. So take the time at the outset to protect your business, now and for the future. If you are looking for insurance we have teamed up with PolicyBee to be able to offer you a 10% discount. Click here to see how they can help you.
If you are a regular follower of our blogs you will have no doubt seen our other blogs dedicated to start-ups. You can read more of our blogs here.
If you have any questions or require assistant please do not hesitate to contact us.
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