Chapter 12: Sole Traders and Partnerships

Question 1

Starting Up Business

What Laws Must an Individual Take Into Account When Starting Business?

Answer 1

Employment Law and Contract Law.

Question 2

Starting Up Business

Employers’ Liability Insurance Covers:

Answer 2

• An Employee Being Injured
• An Employee Injuring or Causing Damage to Another

Question 3

Starting Up Business

What Must a Business’s Name Comply With?

Answer 3

Rules in CA2006.

Question 4

Starting Up Business

What VAT Scheme is Available for “Small” Businesses?

Answer 4

The Flat Rate Scheme.

Reduces VAT Due and Lessens Administrative Burden.

Question 5

Starting Up Business

A Business Must Register for the Construction Industry Scheme Where:

Answer 5

Using Independent Contractors.

Must Deduct Income Tax on Thheir Behalf.

Question 6

Business Premises - Working From Home

What is Required for a House to be Used for Business Purposes?

Answer 6

Written Consent of the Bank or Building Society as Secured Lender.

Question 7

Business Premises - Rented

What Did Small Business, Enterprise and Employment Act 2015 Remove?

Answer 7

The Incentive for Landlords to Include a Prohibition Against Business Use in a Tenancy Agreement of a Domestic Property.

Question 8

Business Premises - Restrictive Covenants

What Should be Checked Prior to the Undertaking of a Business Activity?

Answer 8

Title Deeds of the Property and the Land Register.

Question 9

Dissolution of a Partnerships

On Dissolution, Partnership Assets are Distributed in the Following Order:

Answer 9

• External Debts;
• Repayment of Advancess Made Over and Above Capital Contributions;
• Capital Contributions;
• Any Excess Per PSR.

Question 10

Partnership Agreement

What is the Basic Position of a Partnership on Death?

Answer 10

The Partnership is Dissolved.

Winding up and Distribution of Assets

Subject to a Partnership Agreement.