Legal Matters

Understanding your legal responsibilities is an essential part of starting and running a business.

The rules that apply will depend on your legal structure, business activities and whether you employ anyone. Responsibilities may include registering with HMRC, maintaining accurate records, submitting tax returns, obtaining appropriate insurance and complying with relevant licensing, consumer protection, data protection, and health and safety requirements.

Meeting important deadlines

Missing important deadlines can be costly. For example, HMRC applies an initial £100 penalty when a required Self Assessment tax return is submitted late. Further penalties can apply when the delay continues.

Limited companies also have responsibilities to Companies House. These include keeping company information up to date and submitting annual accounts and confirmation statements when required.

Businesses that employ staff may have workplace pension responsibilities. Employers must assess their workers, provide relevant information and comply with applicable automatic-enrolment duties.

Reduce unnecessary risks

Starting a business always involves some uncertainty. You can reduce unnecessary risk by understanding which rules apply, what records you need and which organisations you may need to contact.

TfE can help you understand the key issues to consider and where to obtain specialist guidance. Contact TfE to find out more about our self-employment support.

TfE provides general business information and guidance. It does not provide legal, tax or financial advice.