How to register a Small Business in the UK Reading Answers

Sep 9, 2025

How to register a Small Business in the UK Reading Answers contains 6 questions and belongs to the assessment system of the IELTS General Reading test. How to register a Small Business in the UK Reading Answers must be answered within 10 minutes. In this IELTS reading section, question types include: Write NO MORE THAN THREE WORDS from the passage.

How to register a Small Business in the UK Reading Answers offers a comprehensive overview of the steps required to start a small business in the UK, including choosing a business structure, registering with HMRC, obtaining necessary licences, setting up a business bank account, and arranging appropriate insurance for legal compliance and credibility. To practice similar reading tests, candidates can refer to the IELTS Reading Practice Test section.

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Topic:

Starting a small business in the UK involves several key steps to ensure compliance with national laws and regulations. Whether you’re opening a bakery, providing IT services, or selling handmade products online, registration is essential.

The first step is choosing a business structure. The most common for small businesses is a sole trader, which is simple to set up and run. Other options include forming a partnership or registering as a limited company. Each structure has different tax obligations and legal responsibilities.

Once you’ve chosen a structure, you’ll need to register your business with HM Revenue and Customs (HMRC). This can be done online and typically takes just a few minutes. Sole traders must register for self-assessment, which allows them to report their income and expenses annually.

Depending on your business type, you may need additional licenses. For instance, selling food may require a hygiene certificate and registration with your local council. Businesses that play background music in their shop may need a licence from the Performing Rights Society.

You should also set up a dedicated business bank account. While not legally required for sole traders, it’s highly recommended for tracking expenses and keeping finances separate from personal funds.

Finally, consider getting business insurance. Public liability insurance is commonly needed, especially if clients visit your premises. If you employ staff, employer’s liability insurance is mandatory.

All these steps help protect your business, ensure legal compliance, and improve your credibility with customers and suppliers.

Questions 15-20

Choose NO MORE THAN THREE WORDS from the text for each.

15. The most popular structure for small businesses is the ……………….

Answer: sole trader

Supporting statement: "The most common for small businesses is a sole trader, which is simple to set up and run."

Keywords: most common, small businesses, sole trader

Keyword Location: Paragraph 2, line 1

Explanation: The passage highlights that among all possible business structures, the sole trader is the most common for small businesses in the UK. This is because it is the simplest to establish and manage compared to partnerships or limited companies.

16. Business registration is done through …………………. and Customs.

Answer: HM Revenue

Supporting statement: "you’ll need to register your business with HM Revenue and Customs (HMRC)."

Keywords: register, HM Revenue, Customs

Keyword Location: Paragraph 3, line 1

Explanation: The text clearly states that businesses must register with HM Revenue and Customs, which is the official UK government department responsible for taxation and customs.

17. Sole traders must register for …………………. to report finances.

Answer: self-assessment

Supporting statement: "Sole traders must register for self-assessment, which allows them to report their income and expenses annually."

Keywords: sole traders, register, self-assessment

Keyword Location: Paragraph 3, line 3

Explanation: Sole traders in the UK must use the self-assessment system to declare income and expenses each year for tax purposes, as outlined in the passage.

18. Selling food may require a …………………… and council registration.

Answer: hygiene certificate

Supporting statement: "selling food may require a hygiene certificate and registration with your local council."

Keywords: selling food, hygiene certificate, council registration

Keyword Location: Paragraph 4, line 1

Explanation: The text specifies that food businesses must obtain a hygiene certificate and register with the local council, ensuring compliance with safety and hygiene laws.

19. Businesses playing music need a licence from the …………………

Answer: Performing Rights Society

Supporting statement: "Businesses that play background music in their shop may need a licence from the Performing Rights Society."

Keywords: licence, background music, Performing Rights Society

Keyword Location: Paragraph 4, line 2

Explanation: If a business plays background music, they need a licence issued by the Performing Rights Society to avoid legal issues related to music copyright.

20. Employers must get …………………… insurance by law.

Answer: employer’s liability

Supporting statement: "If you employ staff, employer’s liability insurance is mandatory."

Keywords: employ staff, employer’s liability, insurance

Keyword Location: Paragraph 6, line 2

Explanation: By law, UK businesses with employees must have employer’s liability insurance to cover potential claims from staff for workplace-related injuries or illnesses.

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