Forming a Business

6. Other Legal Requirements

6.1 Find out if you need a licence. For example, running a nursing home requires a licence.

6.2 Check you have adequate insurance.

• Some insurance, such as employers' liability, is compulsory. (See Insurance to protect your business).

6.3 Get advice from your accountant with regard to tax and VAT.

• You must register for VAT if your sales ('taxable supplies') in a 12-month period are, or are expected to be, more than £64,000.
• Notify your Inspector of Taxes and the Department for Work and Pensions when you start trading.

6.4 Register with your PAYE tax office when you are likely to employ people - directors of limited companies are classed as employees too.

Contact the New Employer Helpline (08456 070143).