Self Employed - what are the steps involved?

[Goody]

Hi,

If one likes to be self employed as a sole trader, should he register a company name first? Could someone tell me the steps involved? (I here you say, "he should speak to HM Revenue & Customs", but I thought I would ask some experienced people here)

Cheers!

 

[acat]

Best to go on a small business advisory course they are free and give you everything from taxation to marketing then at least you will be spending your investment wisely.



Chris

 

[Goody]

Best to go on a small business advisory course they are free and give you everything from taxation to marketing then at least you will be spending your investment wisely.



Chris

Many thanks for the info, Chris

Cheers!

 

[offshorealex]

as a sole trader you dont need to register with companies house, only do this if you're a limited company.

 

[acat]

Your welcome mate also pop into your bank and ask about setting up a business they should give you some free software that will invlove a business plan that will help you stay focused. How I love that work of four letters beginning with F*** as in FREE



Chris

 

[SirKit Breaker]

Hi mate,

You have a legal obligation to inform the Inland Revenue that you are self employed within 3 months of starting to trade. This applies even if you are employed as well by another company. Whilst you are at it tell them you want to be on the CIS scheme, this will get you a Unique Tax Reference number (UTR) you will need this if you work some builders etc who pay you on this scheme, they pay you 100% of your materials and deduct 22% of the labour and pay it to the taxman on your behalf.

Speak to an Accountant, i can highly recommend one PM me if you are interested.

Keep receipts for everything, tools, materials, courses, hotels, meals, professional fees (part P etc), and anything else.

Keep all household bills, bank statements, phone bills, mortgage statements,and council tax bills, because if you trade from home you can claim part of these costs against tax.

Vehicle costs are optional, you can claim 40p per mile for business use, or you can claim the actual costs like MOT, Insurance etc, an accountant will advise you the best method based on your circumstances.

Thats about all i can add, but take up some of the good advice in the other posts.

Cheers..........Howard

 

[Goody]

I have definitely asked the question in the right place, thanks to everyone for your advices.

Cheers!

 

[brucelee]

Hi mate,

You have a legal obligation to inform the Inland Revenue that you are self employed within 3 months of starting to trade. This applies even if you are employed as well by another company. Whilst you are at it tell them you want to be on the CIS scheme, this will get you a Unique Tax Reference number (UTR) you will need this if you work some builders etc who pay you on this scheme, they pay you 100% of your materials and deduct 22% of the labour and pay it to the taxman on your behalf.

Speak to an Accountant, i can highly recommend one PM me if you are interested.

Keep receipts for everything, tools, materials, courses, hotels, meals, professional fees (part P etc), and anything else.

Keep all household bills, bank statements, phone bills, mortgage statements,and council tax bills, because if you trade from home you can claim part of these costs against tax.

Vehicle costs are optional, you can claim 40p per mile for business use, or you can claim the actual costs like MOT, Insurance etc, an accountant will advise you the best method based on your circumstances.

Thats about all i can add, but take up some of the good advice in the other posts.

Cheers..........Howard

Hi mate,
sorry for butting in but when you say you can claim for courses does this include for courses before you initially start as i paid £4020 for 6 week training to 17th edition C&G 2382-10, 2393, 2377 and logic full scope also as part of the cost i recieved a megger mft 1552, a ck basic toolkit and the regs and on site guide would i be able to claim for these against my tax as this was paid for by loan of family and will eventually have to be paid back is it the same for limited as well any help mate as you can appreciate this is a large amount of start up costs and ive been told in another post you cant cheers for any advice on this

Best to go on a small business advisory course they are free and give you everything from taxation to marketing then at least you will be spending your investment wisely.



Chris

hi mate
who provides these small business advisory courses mate as i am in process of start up and also need to decide wether to go limited or sole trader which is best really thanks for any advice

 

[SirKit Breaker]

Hi mate,
sorry for butting in but when you say you can claim for courses does this include for courses before you initially start as i paid £4020 for 6 week training to 17th edition C&G 2382-10, 2393, 2377 and logic full scope also as part of the cost i recieved a megger mft 1552, a ck basic toolkit and the regs and on site guide would i be able to claim for these against my tax as this was paid for by loan of family and will eventually have to be paid back is it the same for limited as well any help mate as you can appreciate this is a large amount of start up costs and ive been told in another post you cant cheers for any advice on this


hi mate
who provides these small business advisory courses mate as i am in process of start up and also need to decide wether to go limited or sole trader which is best really thanks for any advice

You would have to speak to an accountant on this matter. When i first started she asked me to provide a list and value of all the things that i brought to the company. She did the maths and i got an £1800 tax rebate. As long as you have some sort of receipt for the cost or something in writing from the people who provided you the loan, i cant see why not.

The small business advisory are run by the government i think, do a search on the net, there is tons of info to be had. I didnt bother mainly because i never had the time.

Cheers......Howard

 

[brucelee]

You would have to speak to an accountant on this matter. When i first started she asked me to provide a list and value of all the things that i brought to the company. She did the maths and i got an £1800 tax rebate. As long as you have some sort of receipt for the cost or something in writing from the people who provided you the loan, i cant see why not.

The small business advisory are run by the government i think, do a search on the net, there is tons of info to be had. I didnt bother mainly because i never had the time.

Cheers......Howard

cheers mate
i took loans from my family to pay for this and my brother will write me something to state this also i am about to purchase a van and insurance, pli, and also purchased further equipment since course, i am also about to book on a 2391 course so am i allowed to claim these is it the same for sole trader as limited with regard to claiming expenses. I dont want to have taken a loan and pay even more money and not to be able to claim i phoned tax was passed about altogether it will have eventually cost me to set up in the region of £9000 maybe and i was under impression i could off set all this against my tax will a accountant charge me for this initial advice i have reciepts for everything so far and evidence of all things included with course cheers for reply
my mate who was on course registered with company house before he went on course and his accountant told him he can claim this as a business expense as its the company who sent him on the course but i did course and am not yet set up should i speak to a accountant or ring inland revenue again ten times yesterday cheers for reply mate much appreciated

 

[acat]

As far as business expenses are concerned it does not matter if you are limited or sole trader, it was at the small business course that I was told by the taxman that I could not claim for the first course that changed me from diy disaster to qualified diy disaster or electrician whichever way you look at it

Sole trader that goes under creditors can take your house and personal possessions ltd they cant and you become an employee of your own company, thats the only difference I am aware of


Chris

 

[garyinderby]

Hi
Try Business Link. its free. i dont know the web address so just google it.
Good luck

 

[brucelee]

As far as business expenses are concerned it does not matter if you are limited or sole trader, it was at the small business course that I was told by the taxman that I could not claim for the first course that changed me from diy disaster to qualified diy disaster or electrician whichever way you look at it

Sole trader that goes under creditors can take your house and personal possessions ltd they cant and you become an employee of your own company, thats the only difference I am aware of


Chris

Hi mate
i think your possibly right i ve been trying to find this out of all who i can as it was a loan including inland revenue. i think my mate who is ltd can claim because he registered with company house before he went on course so as coburn suggests his business sent him on this course so its a expense were i have done course and now setting up. which do you think is better at first sole trader or limited mate

 

[acat]

Thats the name I was trying to remember small business advisory and business link are one in the same. Thanks for that sometimes I forget my own name




Chris

 

[brucelee]

Hi
Try Business Link. its free. i dont know the web address so just google it.
Good luck

hi mate i have been in touch with business link a few times they are helpful its them who got in contact with jobcentre trying to get me help, but basically because i am a carer not on jobseekers allowance they wont help it has taken best part of 6 month to find they wont help w?????? sorry but the jobcentre are useless thanks mate i will be keeping in touch with business link and all i can for advice

hi acat
thanks for help so can business link get me on one of these small business advisory courses mate