Over 200,000 small businesses have taken advantage of being able to register their status as limited companies and for tax with a new service, introduced only last year.
The Streamlined Company Registration Service, was set up in a collaboration between HMRC and Companies House, is designed to ease the administrative burdens on new businesses and let them get on with the practical running of their business.
When registering with Companies House, companies can also register for corporation tax and HMRC’s digital services and as an employer for PAYE tax, making it easier for new start-ups to fulfil all their legal obligations in one go. The change removes the need for businesses to send duplicate information to both Companies House and HMRC.
Mel Stride MP, Financial Secretary to the Treasury, said: “It’s never been easier to set up a business in the UK. Reducing the administrative burden on small businesses is all part of this government’s commitment to support small business growth.
“HMRC and Companies House are working hard to make business registration and tax easier. Previously, the same information would need to be entered into a number of different platforms to register a company and register for tax, we have simplified that process.
“The Government is committed to ensuring we can deliver a modern, digital tax system for all businesses and their agents, supporting them to get their tax right and reducing the amount of tax lost through avoidable error.”
The Government sees the move as part of its Industrial Strategy programme, the aim of which is help businesses to be more productive backing them to’ create good jobs and increase the earning power of people throughout the UK with investment in skills, industries and infrastructure’.
Kelly Tolhurst, MP, Small Business Minister said: “British small businesses, and the entrepreneurial spirit behind them, are the backbone of the UK economy employing over 16 million people up and down the country.
Through our modern Industrial Strategy we are making it easier for small businesses to grow and flourish by investing in modern industries, infrastructure and skills, and making it easier to access finance. Anyone thinking of starting a new business in 2019 should check out the huge wealth of Government advice and support available and go for it.”
This article first appeared on Tax Guide on 10 January 2018