Regulatory compliance is an important part of running a business. Whether you are self-employed, operating a trading company or investment venture, you are subject to compliance and regulations by statute laws and legislation.

There are number of obligations a business must fulfil. If you don’t, it will cause problems for you and your business. There are tough penalties in place for non-compliance. Some of the obligations are ongoing, while others are one-off.

Registration with HMRC

When you become self-employed, you are mandated by law to inform HM Revenue and Customs. If you fail to do so, you will face a penalty. Self-employed refers to selling something, having a customer for your services or goods, or actively marketing the business.

You can register online, through the HMRC website; call up the Newly Self-employed helpline; or download and fill out the CWF1 form available on the HMRC website and mail it to the address mentioned on the form.

If you register on the HMRC website, the Online Tax Registration Services allows you to register and enrol for Self Assessment. However, for this, you will need the National Insurance number. The good thing is just a single registration process allows you to register for Self Assessment and Class 2 National Insurance contribution.

In case you are a contractor associated with the construction industry, you also will have to call the Construction Industry Scheme helpline to register. In addition, you would have to register for VAT.

Taxation

Have proper record keeping system to show how the money spent on day-to-day operations and capital expenditures. All supporting documents should be maintained carefully to avoid penalties later on.

Also, remember if your business garners profits above a certain value, you may have to pay Class 4 National Insurance.

Taking on Employees

If you are hiring employees, it is important to have the policies and procedures in place from the very beginning. Write down the terms and conditions of employment to avoid disputes later on. Make sure new employees under the contract completely.

In addition, you would also have to set up a PAYE scheme for the employees you have.

Licensing

When starting a business, find out whether your business requires a license. Contact the local authorities, as licensing is handled by them. There are separate guidelines and procedures of each license.

There are several more compliance and regulations you may have to fulfil, depending on the kind of business venture you set up.