Starting new business

Want to start a dropshipping business (i assume its what its called). The product will be manufactured in china and shiped to and sold in south asia and middle east with the brand and business registered in UK. I want to know: 1) how to register and should it be registered as ltd company as for the time being i will be the sole owner of the company 2) what kind of taxes do I have to pay (eg VAT etc) Basically I need to know how to do things related to tax the right way before I start such sort of business

Hi,

If you choose to register your business as a limited company, you will need to do so through Companies House, declaring your gross profits and expenses in a corporateion tax return and paying corporation tax on your business profits.

Set up a limited company: step by step

If you choose to be a sole trader, then you need to register for self assessment, as self employed, declaring your gross turnover and expenses in your personal Self Assessment Tax Return (SA100) and SA103 (self employment).

Set up as self-employed (a 'sole trader'): step by step

If your gross turnover is likley to exceed £85000, you will need to register for a VAT account at:

Register for VAT

Please also have a look at making tax digital, as whatever way you choose to run your business, this new guidance will be relevant.

Overview of Making Tax Digital

Thank you.