1. Banners
    Dismiss Notice

Business starter advice

Discussion in 'General Discussion' started by trance_fan, May 19, 2007.

Users Viewing Thread (Users: 0, Guests: 1)

Page 1 of 2
  1. trance_fan

    trance_fan Registered User

    Joined:
    Nov 7, 2002
    Messages:
    9,022
    Likes Received:
    0
    Business starter advice

    the websites for this that i have looked at so far, are just babble!

    My main question is, do I immediately need to register as a business and register with the inland revenue etc? or is there a certain time period where you don't have to?

    would be small business, sole trader
    trance_fan, May 19, 2007
    #1
  2. 1615634792921.png
  3. Mr. Revel

    Mr. Revel Registered User

    Joined:
    Nov 12, 2001
    Messages:
    9,884
    Likes Received:
    0
    you would need to call the inland revenue, and declare yourself as a sole trader. You then need to set up paying your national insurance etc. They will issue you with a UTR code, and you will need to fill in your personal and business tax returns in the future etc (or your accountant will).

    I would suggest VAT registering if you planning on actually making some cash...
    Mr. Revel, May 19, 2007
    #2
  4. Stephen

    Stephen the reel master

    Joined:
    Aug 16, 2005
    Messages:
    4,625
    Likes Received:
    0
    Location:
    the old fold
    But don't have to be taking £62,000 + to turn VAT regt?
    Stephen, May 19, 2007
    #3
  5. trance_fan

    trance_fan Registered User

    Joined:
    Nov 7, 2002
    Messages:
    9,022
    Likes Received:
    0
    thanks so far!

    yeah to be VAT registered you need there is a minimum turnover limit

    I can't see me makin that kind of money straight away!
    trance_fan, May 19, 2007
    #4
  6. BRID

    BRID Has name in red. Staff

    Joined:
    Jan 31, 2003
    Messages:
    8,239
    Likes Received:
    218
    Location:
    Ever changing
    you have three months to notify the inland revenue for corporation tax, or you get fined (assuming your starting a Ltd.)
    BRID, May 19, 2007
    #5
  7. Mr. Revel

    Mr. Revel Registered User

    Joined:
    Nov 12, 2001
    Messages:
    9,884
    Likes Received:
    0
    no, you can register before, and claim back on your inputs, but you will have to pay VAT on your outputs.

    Its compulsary if your revenue is 64K+, but you can register below that turnover.

    If your doing a service, then dont bother at all....
    Mr. Revel, May 19, 2007
    #6
  8. Oasis

    Oasis Peter North-east

    Joined:
    Jun 22, 2004
    Messages:
    8,023
    Likes Received:
    0
    Location:
    Seaham
    Re: Business starter advice

    Are you thinking of opening a shoe shop like?
    Oasis, May 19, 2007
    #7
  9. Wot

    Wot Registered User

    Joined:
    Jan 3, 2002
    Messages:
    1,390
    Likes Received:
    0
    Location:
    ?
    Re: Business starter advice


    you can also register as a limted company and make yourself director, that way if it go's tits up all debt is limted to the company. but for a new business its harder to get lines of credit if you start as a limted company
    Wot, May 19, 2007
    #8
  10. BRID

    BRID Has name in red. Staff

    Joined:
    Jan 31, 2003
    Messages:
    8,239
    Likes Received:
    218
    Location:
    Ever changing
    I'd recommend the last thing you do is set up as a sole trader.

    the tax is horrific.

    Ive been sole trader before, and now have a limted company (cost 80 quid to set up) ..... its great being able to spend money on things like petrol, hotels etc etc (im an IT contractor) BEFORE you think about paying yourself, and being taxed to kingdom come.

    One thing you need to be able to do is file some paperwork and nominate someone as a company secretary - but then again if your a sole trader you have to fill in a self assessment form each year.

    Ltd all the way.
    BRID, May 19, 2007
    #9
  11. BRID

    BRID Has name in red. Staff

    Joined:
    Jan 31, 2003
    Messages:
    8,239
    Likes Received:
    218
    Location:
    Ever changing
    I'd recommend the last thing you do is set up as a sole trader.

    the tax is horrific.

    Ive been sole trader before, and now have a limted company (cost 80 quid to set up) ..... its great being able to spend money on things like petrol, hotels etc etc (im an IT contractor) BEFORE you think about paying yourself, and being taxed to kingdom come.

    One thing you need to be able to do is file some paperwork and nominate someone as a company secretary - but then again if your a sole trader you have to fill in a self assessment form each year.

    Ltd all the way.
    BRID, May 19, 2007
    #10
  12. trance_fan

    trance_fan Registered User

    Joined:
    Nov 7, 2002
    Messages:
    9,022
    Likes Received:
    0
    yeah it's a service primarily but would be selling goods also when appropriate to a particular job

    Wot - Sounds like a plan

    Cheers brid I think that could be the way to do it...I'll just get my mum to be it.

    Pete - took me a few mins to get that one :lol:
    trance_fan, May 19, 2007
    #11
  13. Stephen

    Stephen the reel master

    Joined:
    Aug 16, 2005
    Messages:
    4,625
    Likes Received:
    0
    Location:
    the old fold
    Re: Re: Business starter advice

    :lol: :lol: :lol: :lol:
    Stephen, May 19, 2007
    #12
  14. BRID

    BRID Has name in red. Staff

    Joined:
    Jan 31, 2003
    Messages:
    8,239
    Likes Received:
    218
    Location:
    Ever changing
    As someone who ended uni, set up a business, ran myself poor over it, then got permanent/regular jobs for a good 4 odd years before going back to running my old deal ..... i'd leave you with this parting shot :

    Its not what you know. Its who you know.

    Network, network, network some more and then keep networking - people give jobs to people they like, not people who offer cheap services that have the potential of going wrong.

    Oh, and dont ever deal with the general public. Sell to businesses :)
    BRID, May 19, 2007
    #13
  15. trance_fan

    trance_fan Registered User

    Joined:
    Nov 7, 2002
    Messages:
    9,022
    Likes Received:
    0
    that was all going well til I read this bit....that's the majority of the target market :lol:
    trance_fan, May 19, 2007
    #14
  16. Mr. Revel

    Mr. Revel Registered User

    Joined:
    Nov 12, 2001
    Messages:
    9,884
    Likes Received:
    0
    tax is a pain, and can be alot. (we pay over £100k in VAT per anum alone!).

    I would suggest staying as a sole trader, as i think the benefits far outway the risk - taking whatever money you like, only paying tax on company profits, not paying any income tax (business pays it based on profits) etc etc...

    Its well worth it if you can make it work, and once you have your head round all the tax and business stuff its easy really.

    Go get an accountant, they will sort it all out for you pretty much. I use Kinsey Jones in Gosforth - they also offer small business advice.
    Mr. Revel, May 20, 2007
    #15
  17. BRID

    BRID Has name in red. Staff

    Joined:
    Jan 31, 2003
    Messages:
    8,239
    Likes Received:
    218
    Location:
    Ever changing
    Sole trader = unlimited liability.

    if something ever goes wrong and theres the law involved, you could get well and truly wiped out. Bankrupt. the lot.

    Being a limited company is MORE tax efficient, not less.
    BRID, May 20, 2007
    #16
  18. BRID

    BRID Has name in red. Staff

    Joined:
    Jan 31, 2003
    Messages:
    8,239
    Likes Received:
    218
    Location:
    Ever changing
    Eh? You pay income tax on every penny you take out of the business - and any you leave in as profit is taxable.
    BRID, May 20, 2007
    #17
  19. Wot

    Wot Registered User

    Joined:
    Jan 3, 2002
    Messages:
    1,390
    Likes Received:
    0
    Location:
    ?
    so your shop takes over £1m per anum?
    Wot, May 20, 2007
    #18
  20. Rob

    Rob Registered User

    Joined:
    Jun 5, 2006
    Messages:
    7,690
    Likes Received:
    3
    Location:
    Sancho Panza
    It would suggest at least that figure with pre tax profits of about £570k.

    I'm in the wrong business. :p
    Rob, May 20, 2007
    #19
  21. BRID

    BRID Has name in red. Staff

    Joined:
    Jan 31, 2003
    Messages:
    8,239
    Likes Received:
    218
    Location:
    Ever changing
    volume is nothing without the margin behind it ;)
    BRID, May 20, 2007
    #20
Page 1 of 2

Share This Page