Project 2. Table of Contents INTRODUCTION..............

Project 2

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
LEGAL & FINANCIAL CONSIDERATION FOR A BUSINESS START-UP............................1
Q1) Requirements of pay tax and submit tax returns..................................................................1
Q2) Information and process required to register with HMRC..................................................1
Q3) Consequences of not complying with HRMC and tax requirements...................................2
Q4) Identify.................................................................................................................................2
Q5) Requirement of employment legislation for the business start-up.......................................3
Q6) Requirement of health and safety legislation for business start-up.....................................3
Q7) Requirement of data protection legislation for start-up.......................................................4
Q8) Requirement of digital and copyright legislation.................................................................4
Q9) Structure of cash flow forecast............................................................................................4
Q10) Prepare complete cash flow forecast for business start-ups...............................................5
Q11) Assess the above prepared cash flow:................................................................................5
Q12) Differentiation between cash flow, turnover an profit.......................................................6
Q13) Information required for start-up.......................................................................................6
Q14) Importance of accurate invoices and payment receipts.....................................................6
Q15) Invoice and payment receipts template..............................................................................6
Q16) Options for making and receiving payments.....................................................................8
SECTION 2......................................................................................................................................8
DEVELOPING A BUSINESS PLAN.............................................................................................8
Q17) Discuss about business plan...............................................................................................8
Q18) Benefits of using a business plan.......................................................................................8
Q19) Content and importance of business plan..........................................................................9
Q20) Suitable contingency plan..................................................................................................9
Q21) Create business plan for start-up......................................................................................10
Q22) Reflect on business plan and potentials to be successful.................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is an economic activity that in used by the individual's in order to earn money
and making better livings as well. There are several businesses in which the most significant is
the kind of start-up business that termed as a particular project or idea which is initiated by an
entrepreneur in order to seek and find out the effective development opportunity. In order to start
a new business with innovative and unique idea requires to consider the legal as well as financial
consideration and prepare effective business plan in order to develop successful start-up business
in the market. Under this report discuss about the financial consideration which includes pay tax,
submission tax, registration process, tax requirements, cash flow forecast, profit, turnover,
invoices, payment receipts and so forth questions. In addition, to consider the legal requirements
study about the employment law, health & safety, data protection and digital & copyright
legislation as well. Lastly prepare a business plan for the development of start-ups which
involves meaning, contents, benefits, importance, suitable contingency plans etc. and provide
reflection on complete business plan.
SECTION 1
LEGAL & FINANCIAL CONSIDERATION FOR A BUSINESS START-UP.
Q1) Requirements of pay tax and submit tax returns.
Within the UK some people or businesses have to compile a tax return every year which
is a form that declare the income and capital gains for a tax year (Dee, 2019). For paying taxes in
UK all individual's or businesses need to be registered with HRMC. Self employed: An individual or self employed must file tax returns who were employed
as a sole trader and earned more than £1000.
 Companies: If a person is director and partner of limited company or an employee with
an annual income of £100000 or more. Also, they have a pre tax investment income of
£10000 or more.
Q2) Information and process required to register with HMRC.
HM Revenue and Customer provides a tool which named Employment status indicator
that can assist in establishing start-ups in an effective manner.
The information of registration of start-up with HRMC: