bUSINESS CUSTOMER BASICS

Updated: May 2023

With around 5.5 million businesses in the UK today, the B2B market offers great opportunities to increase sales. With 50% of new vehicle registrations coming from the business market, use this guide to give your B2B customers confidence that you understand their:

  • Business structure
  • VAT (Value Added Tax) Status
  • Accounting/Reporting schedules

There are 4 main key business structures in the UK:

Sole Trader
Ordinary Partnership
Limited Partnership
Limited Company
Essentials Tip: WHAT’S THE DIFFERENCE?

Incorporated businesses have their own legal identity OUTSIDE of the people running it and contracts/agreements can be entered in their name. Members of an incorporated business are not generally liable for the business’s actions.
 
Unincorporated businesses have no legal identity outside of the person or people who run them. They are personally liable for the business’s actions.

SOLE TRADERS

The simplest – and most popular – business structure in the UK is Sole Traders who are their own bosses and have complete control over all decisions.

Ordinary Partnerships Guide

ORDINARY PARTNERSHIPS

Ordinary Partnerships allow two or more people to work together towards their common business goal, sharing the workload, risks and rewards.

Limited Liability Partnership

LIMITED LIABILITY PARTNERSHIPS (LLPS)

The flexibility of an Ordinary Partnership with the limited personal liability and separate legal identity of a Ltd Company.

LIMITED COMPANIES

Legally distinct bodies that can own assets and sign contracts, Limited Companies keep a business’ finances separate from the owner and shareholders’ finances.

BUSINESS ACCOUNTING

Use this guide to discover how Balance Sheets, Profit & Loss Accounts and Cashflow Statements are used to map a company’s progress. 

VAT Calculator

VAT

VAT-registered or not, it can make a difference to how a company acquires business vehicles. Understand how it works for cars, LCVs and HGVs.