Should you incorporate your business?

For many of the 4.7 million Britons now in self-employment more than ever before January is the month in which the annual tax return must be filed, declaring their income for the previous tax year. If you're in that boat, now is the time to ask yourself whether your business whatever it is is set up in the best way possible.

Most self-employed workers are "sole traders" in the jargon of HM Revenue & Customs, which means that the business doesn't have a separate legal existence to the person behind it. Sole traders operate as sole and personal owners of their businesses, declaring their income to the taxman each year through the self-assessment tax system.

The alternative is to set yourself up as a "limited company". Limited companies, by contrast, have their own legal identity that is separate from its shareholders and directors even if there is only one of each. The company must be registered with Companies House and file details of its accounts each year, as well as making an annual tax return for the business.

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The big question for many business owners is which set-up generates a smaller tax bill. As a sole trader, you pay income tax on your earnings at the same marginal rates as people in employment so 20%, 40% or 45%, depending on your tax band as well as national insurance. By contrast, limited companies pay corporation tax on their profits, which is currently 20%. They can then pay dividends to shareholders, on which tax rates are lower 7.5%, 32.5%, or 38.1% respectively (plus the first £5,000 of dividends each year are tax free) and with no national insurance bill.

For many business owners, this makes the limited company route more attractive, though the choice is much less clear-cut than in the past, since tax on dividends was raised significantly last April. It's often possible to minimise tax by keeping dividend payments within shareholders' tax allowances, particularly where the limited company is owned by a married couple.

Not all sole traders will make a saving, particularly once you take into account the additional costs of the limited company route. While it's entirely possible to do your own accounts as a sole trader, you'll almost certainly need professional advice when filing accounts and tax returns for a limited company. You may also simply decide the extra hassle is not for you. Still, the limited company set-up becomes more attractive as businesses grow in size, particularly if you want to take staff on, or raise finance. You'll also be protected from liability for the company's debts, because you'll only be liable for what you put into the company.

Cut the cost of business telecoms

Could your business get a better deal by switching telecoms provider? If you're using one of the UK's dominant suppliers such as BT, Sky or Virgin for services such as broadband, the answer is almost certainly yes. Hundreds of thousands of small businesses still aren't getting access to the best broadband services, according to research from Ofcom, the telecoms industry regulator. It has found that super-fast broadband coverage rates remain much higher among larger firms and even households.

Other research suggests that smaller providers, including several that specialise in the small-business market, frequently undercut the big names, while also offering better standards of customer service. In one report, almost a third of small firms surveyed complained that the large providers offered poor levels of service, with only 42% happy with their supplier. The satisfaction level with smaller providers, by contrast, was 55%. When it comes to costs, price comparison service uSwitch reports that less well-known providers, including Xln Telecom, Toople, bOnline and Onebill, undercut big-name firms on broadband and other telecoms services.

Five questions for Olly Culverhouse, founder and CEO, Signable

Sum up your business in 75 words

Signable is an electronic signature platform that allows our customers to get their documents signed, anywhere in the world, on any device, at any time, without the need for pen and paper. All signed and legally binding in minutes.

What is your greatest success so far?

We have tripled the size of our team in 2016 and have grown to more than 2,500 customers throughout the UK and Europe.We're aiming to double the size of the team again in 2017 and to reach 5,000 customers.

What have been your biggest challenges?

We've had to think hard about how we handle fast growth and how it affects the culture and team dynamics of our organisation. At the beginning of the year, we thought about what it should mean to be part of "Team Signable" and how we might preserve that as we grew. We do weekly catch-ups with everyone, focusing on their personal development and their development within the company. We aim to give people full autonomy around their role, so they've got control over how they spend their day. We've also attempted to remove technology or process barriers that get in the way of the team.

What are your plans for hitting your targets?

The main obstacle is going to be finding the right people the personality of our recruits is much more important than their technical skills. As for customer numbers, our challenge is to spread the word we need to educate as many people as possible about the benefits of signing documents electronically, and work to clear up any misunderstandings and lack of knowledge.

What advice would you give fellow entrepreneurs?

Don't worry if you feel like you don't know enough to be doing what you do the truth is that everyone feels that way, even if they're not admitting to it.