When you own a burnaby motor trade business, it is vital that you declare your income from your business where necessary. What needs declaring to HMRC all depends on your overall income, as well as the matter of whether you need to register for VAT, Corporation Tax and PAYE for employers. Understandably as a business owner, who is setting up shop, it's not a case of making money and having it all to yourself, with the added outgoings of business equipment, employees and tax etc.
It is advised by HMRC that you let them know when you've made money that you may need to pay tax on, as soon as possible. Whether it's because you were unsure about doing so, or couldn't afford it, they may be more lenient if you are honest about why you haven't paid it yet. At the end of the day, the success of your business leads to more income, and in turn, more tax to be paid, so although it may seem blunt and rather negative, they'll want your business to succeed.
In terms of registering for VAT, you need to be making at least 81,000 a year before tax from your business, before you do so. Corporation Tax must be paid when you set up a small business. Within the first three months of setting up, you must let HMRC know about any details of your business so they can calculate the amount of tax you will need to pay. Once you are registered though, HMRC will send you details on how to contact them and let them know all your business information.
When it comes to outgoings, there's not anything that is a necessity to declare as at the end of the day, it's up to you what you what you do with your finances. The only time you will need to keep invoices or at least note down your spending would be for something that is directly purchased for your business it could affect some of the numbers further down the line.
Overall, it's a good idea to keep track of everything that comes in and everything that goes out. Be mindful that anything can change with percentages of taxes and VAT that need to be paid to HMRC so as long as you have your back covered with all of your history, you shouldn't have anything to worry about, as it will all be legitimate.
Source: Mary Knoll