Thinking of going alone but want to stay employed with my company.

[Bright.Spark]

Hey, Im a 24 year old electrician with two years experince. I have a city and guilds 236 part 1&2 plus my 2391. I am currently employed by a big company based just outside london but I really want my own business and feel now is the time. What Im wondering is can I register a company in my parents name then advertise the business and gain work then eventually go alone. I understand if I get caught by my current employer I will be sacked but if the business is in my parents name can it be done? Also what are the basic qualifacations required for starting a business?
Cheers fella's

 

[acat]

Best go to the small business advisory people and take one of their courses all your questions can be answered by them. a few pointers

If your parents are the company inland rev will tax them they would also need employers insurance along with all the other bits as you would become an employee.

From a tax point of view no problem working and self employed but it may be just to expesnive.



Chris

 

[dragon-av]

Even if the business is in your parents name (i.e. a ltd company) then does your current terms allow you to work for another company? Would they let you work for Joe Blogs electrical as well as them? as far as i see it as long as you dont go poaching their customers, using their materials and assets (van fuel fixings tools etc) its no different to you getting a side job in tescos but your contract may say different

 

[Bright.Spark]

Thanks for the help chris. How much does company insurance cost? I'm not doing anything illigal by what I'm planning though am I?

 

[acat]

No its legal to work and have another job as self employed dont have or need employer insurance as I have no staff just know its a legal requirement. It might help if your firm is commercial to go as a domestic then at least you wont be stepping on their toes.

Small Business Course is 2 or 3 days and free and inland revenue, banks, etc all attend and you can ask the best way for you to go and whats needed, from there you can decide if its worth the move.

Self employed seems to be picking up a bit but not enough to risk going it alone at the moment. If you decide to take the plunge inland revenue have to be informed within 3 months or you risk fines for not doing so.


Chris

 

[Bright.Spark]

This is my problem dragon-av, my contract states I can have any other job except working for another electrical company. That's y I would register the company in my parents name so I have no input into the company. But I want to start a company but have no contacts with customers or builders so I was thinking of starting the company in my parents name, advertising and just starting on weekend work then when customers pick up I would go full time into my business.

 

[Darkwood]

Its the cake and eat it syndrome, setting up on your own has risks which you have thought about but you seem to want to cut the risk by having a fall back, well if only life was that easy, your age will bump up things on the insurance, with liabilty been the minimum id recommend which could set you back between 60 and 100 a month depending on the extent of the cover what will knack you up is the taxman and the time and input needed, as not only will you be in your employee status but you will have to find time to do all your quotes, billing etc , its a big bite of the cake to take while still been commited to a company. The only way around this is what is known as govy jobs (cash in hand) which i cant condone myself as its illegal but often the favoured choice to build a customer base.

 

[IP4X]

This is only my opinion based on my experience!

If you want to go alone you must be in the mind set of giving it all you have got!
Having your own ltd company costs money to start and to run so if you are going to run the two jobs together you will probably not make any real profit unless they are good jobs!

Lets take my company for example: Ltd company.

Accountant fees ( final year books ) first year £2000
Book keeping fees ( everyday/month ) paid girlfriend in kind! will cost you if you don’t do it yourself.
Niceic etc £500 per year
£ 2000000 Liability insurance. £1000 per year
Office set up £500
company secretary (not the one who answers phone) perhaps included in accountant fees.
Van ???
Van insurance???
Own tools???

Don’t get me wrong here, there is nothing better that going on your own but it is a lot of work. If you do small jobs its better to join one of the schemes like niceic so you don’t have to pay BC near £200 for each notifiable job. But it comes at a price too.
Just remember when you go on your own you become the electrician, the secretary, the QS, the book keeper, the sales team, the debt collector, the designer, the quotation expert, etc etc.I know my accounting bill was high but in the first year I was a little in over my head so many phone calls regarding vat etc.
Perhaps a sole trader is better option at first. But remember that there are greater personal risks with that option.
If you do go on your own "Go Hard!" Good luck!

 

[SirKit Breaker]

This is only my opinion based on my experience!

If you want to go alone you must be in the mind set of giving it all you have got!
Having your own ltd company costs money to start and to run so if you are going to run the two jobs together you will probably not make any real profit unless they are good jobs!

Lets take my company for example: Ltd company.

Accountant fees ( final year books ) first year £2000
Book keeping fees ( everyday/month ) paid girlfriend in kind! will cost you if you don’t do it yourself.
Niceic etc £500 per year
£ 2000000 Liability insurance. £1000 per year
Office set up £500
company secretary (not the one who answers phone) perhaps included in accountant fees.
Van ???
Van insurance???
Own tools???

Don’t get me wrong here, there is nothing better that going on your own but it is a lot of work. If you do small jobs its better to join one of the schemes like niceic so you don’t have to pay BC near £200 for each notifiable job. But it comes at a price too.
Just remember when you go on your own you become the electrician, the secretary, the QS, the book keeper, the sales team, the debt collector, the designer, the quotation expert, etc etc.I know my accounting bill was high but in the first year I was a little in over my head so many phone calls regarding vat etc.
Perhaps a sole trader is better option at first. But remember that there are greater personal risks with that option.
If you do go on your own "Go Hard!" Good luck!

I'm not Ltd company, but are you sure about those costs?

I pay £80 for £2m PL insurance.
£475 Elecsa Part p scam costs
£350 Accountancy fees

All annually

Van, i claim 40p per mile for business use.
I also abuse the wife for my bookkeeping etc but i pay her (she pays herself) £500 a year i think.

 

[IP4X]

I'm not Ltd company, but are you sure about those costs?

I pay £80 for £2m PL insurance.
£475 Elecsa Part p scam costs
£350 Accountancy fees

All annually

Van, i claim 40p per mile for business use.
I also abuse the wife for my bookkeeping etc but i pay her (she pays herself) £500 a year i think.

Actually the accountants fees were more! My back and my ar...se still hurts from being bent over and shafted!!
To set up a ltd you need to do the articles and memorandum of association, vat registration, company house registration, blah blah blah which costs the money.
£80 must be per month?? £960 per year???
I am actually closing the company as it costs too much to run and I will be taking it easy next year.
So please let me know who you are insured through!

 

[Phase2Phase]

hi im self employed but not a limited company and my public liability is onli bout £100 a year and im with axa insurance check them out

 

[Darkwood]

hi im self employed but not a limited company and my public liability is onli bout £100 a year and im with axa insurance check them out

It all depends on your cover initially and the type of work you undertake, im repairing and upgrading mahinery and their safety systems too, try putting that to your insurer and you could see several hundred on your quote.

 

[Risteard]

This is my problem dragon-av, my contract states I can have any other job except working for another electrical company.

I have always wondered whether such a clause is in fact legal. Perhaps you should consult a solicitor.

 

[Phase2Phase]

It all depends on your cover initially and the type of work you undertake, im repairing and upgrading mahinery and their safety systems too, try putting that to your insurer and you could see several hundred on your quote.

this is true i am a domestic and commercial installer working on 3phase and single phase so yea dependin on wat type of work u carry out it will b different prices

 

[cbw]

I have always wondered whether such a clause is in fact legal. Perhaps you should consult a solicitor.

I was also under the impression that they are mostly not worth the paper they are printed on......However it could cost a fortune and loads of stress to fight it!