Online business, taking it to legal side
Hi everyone, great forum, have been lurking for a while, but finally decide to register, so here’s the story/questions. For several years now I’ve been doing freelancing, however the numbers were not big as I was still in education. However over last year and a bit, everything picked up, went into five figures with invoices issued for a lot of the payments. No tax paid yet tho, getting rather scared of tax man coming after me and would rather set up a company and take care of things! Even tho I did business studies some years back, I have no idea how to do what when it comes to legal side and best set up for me. So here are the questions: 1. Can tax man track paypal payments? I’ve got a personal paypal account that has money coming in and going at all times, can they track this? I also have a paypal card so I try to keep minimal numbers in my bank account, but already went into 5 figures over last year. 2.Whats the difference between VAT and TAX? I just don’t get it, seems like the same sort of a thing? 3.Could anyone recommend a good set up for me? What company type should I register to avoid too much taxing? 4.How can I claim back VAT? I know that you have to register for something, but can I claim back from anything then? OR just things related to my business(web development)? Should I register my business in a more broad category, e.g. web development and printing, so that I could claim on petrol and that sort of expenses? 5.I’ve heard about grants for young people starting a business, anyone could point me in right direction? 6.Now I have a pile of invoices, what happens if I open a company? Do I have to shift them somehow? Do I have to pay tax on them(as that will make me go bankrupt)? 7.A lot of people said to me that you get the first year of opening company tax free, how does that work? Anyone that could help would be my hero, seriously lost in all of this!!!