The financial side of running a business can be very scary to those just starting out. Entrepreneurs coming from the security of an employer who sorted all the tax and national insurance are often daunted by the prospect of taking on these tasks. This is an important topic, which any business owner must take very seriously.
I have heard stories of accountants coming up with figures that would make the taxman choke (and not in a good way) and people seeing all this money coming in and 'forgetting' that the Mr. Taxman is going to want his share. When the tax bill comes they have no cash to pay it. Then there's the question of how much to put aside, how to keep your records, what you should be recording.
So Vince Cable, the Business Secretary no less, has been fined £500 for not registering for VAT on his freelance income which, according to The Sun, was between £127,000 - £192,000 in 2009 -2010. So, the man known for campaigning against tax evasion has himself now been found to have evaded tax, although Mr Cable's aides have said it was not done intentionally and was reported by his personal accountants as soon as it was found.