Certainly has its benefits doing it yourself .I do all my own book keeping and self-assessment. It's not that difficult for a small one-man-band.
Thanks all for the above. I've had a read on the gov website and still wanted to just clarify what the exact process was for going as a sole trader. It will be mainly and online company re selling goods so would this affect the rates on the current house i am in? Apart from register with hmrc for self assessment is there anything else critical I must do before starting?
Register the company as a limited company. all it takes is one large order to go belly up, your client to demand a refund that you dont agree with, they start legal action and then your personal belongings including your home and car become part of the business and any potential settlement. Protect yourself - It costs £12 to register as a limited company and that £12 gives you comeplete protection. I cant stress this enough
Thanks, Any other advice regarding starting up? I was thinking of starting as a sole trader to test the water and then transfer to Ltd company but maybe starting as a Ltd company would be best after all.
Honestly start as you mean to go on - you wouldnt think to put a condom on half way through the big cuddle!! It offers you total protection. In business you never know what you might wonder in to. A well known restaurant in belfast used a copyrighted name a few years ago and cost him £80k in legal fees for both sides. If youre a limited company with no assets in the company you simply strike the company off and you are free from any company debt. It's not me telling you ways to be fly, im just saying you never know!
Honestly start as you mean to go on - you wouldnt think to put a condom on half way through the big cuddle!! It offers you total protection. In business you never know what you might wonder in to. A well known restaurant in belfast used a copyrighted name a few years ago and cost him £80k in legal fees for both sides. If youre a limited company with no assets in the company you simply strike the company off and you are free from any company debt. It's not me telling you ways to be fly, im just saying you never know!
Other advise would be. Keep good records. It's a pain in the hoop but not only gives you your position at any given time but if HMRC come knocking (they rarely do) but if they do you are prepared. ohh and expense the bejesus out of everything!!
If it's an online business based at home will this affect the rates of the house? If going down the Ltd company route would getting an accountant on board be the best option then for setting it up correctly and making sure everything is above board and legal.
From reading online there's no real advantage for vat registration untill I would be near the limit for registration from what I can see.
if I have stock already purchased in my own name now how can this then be sold through the ltd company once its setup?
The glorious dividend rate must be considered for cash extraction.As an accountant working in audit this definitely is not the area that i work in, but I definitely wouldn’t rush in to being a Ltd company straight away, it has its benefits and its disadvantages, it really depends on what sort of business you are setting up, for example if you anticipate having large borrowings and/or credit with suppliers, then id say go ltd to offer protection over ur personal assets, but if for example your going to sell something you grow, your unlikely to have very much risk so the extra hassle of being a ltd company doesn’t really offer you much.
Thing to remember is as a sole trader you are taxed on your profits, but if you run a ltd company you are taxed on anything you pay yourself in the same way my company pays me, as you and the company are 2 separate entities, and then the company is taxed on any profits left over after all costs have been deducted. Its not a straight forward answer or question unfortunately.
Anyone able to clarify how soon you must register as a sole trader? From looking online it looks like you must register within a year from starting?
Anyone able to clarify how soon you must register as a sole trader? From looking online it looks like you must register within a year from starting?
File your Self Assessment tax return online
Sign in and send your Self Assessment tax return online.www.gov.uk
'Register by 5 October in your business’s second tax year. You could be fined if you do not.'
Thats the deadline for registration, but anyone I know, would generally register from the date they start to 'trade'.