Advice required RE starting a business

msn

Hello All
Just joined (please be gentle), require a fair bit of advice regarding starting a business/being self employed.
Right bit of back ground, please bear with me, I'm an ICT engineer I've been working in IT for about 4 years mainly catering for business customers as support. I've always wanted to start up on my own (hasn't everyone), and quite frankly think I could do a good job on my own (hope I'm right). At the moment I'm employed and feel grateful - however I can't help but think that the earlier I get the wheels in motion the better plus if the recession hits hard if I have something reasonably established I feel it would be a good back up to slip into.

My first question is where to start? Do I register a company or register as self employed/ second job. or not tell anyone at all?
Business wise I'm thinking of starting small so it can run in the back ground, start a website and do jobs as they come (if at all) around my current job. Maybe sell products I'm not decided yet I might just keep it solely service/labour at the moment.

Second question, where does this stand me with my current employer? Technically I will be a competitor as I'm in IT, but IT's a broad field and I plan to do a few things the current employer doesn't and have no intention of taking work from under them or any other underhand dealings.

Thirdly any other advice or resources at this point welcome. Initially all I expect is to (if I do register a company) get enough money incoming just to support a website and whatever set up/ yearly costs there are. My main priority is simply having an established company/name for my self. I figure (please correct me if I'm wrong) as I'm still young (22 - potentially a slight issue but I don't want it to hold me back), have the smallest overheads possible as I'm still at the parents' home and have little assets.... this is the key time to start a business.

Any advice or help very welcome and would be much appreciated
Thanks in advance....

PlutoinCapricorn

No matter what field you are in, and whatever your expected income, it is best to start at https://www.businesslink.gov.uk. Free advice, courses .... there is a lot of help out there.

The standard advice is to start by registering as a sole trader, then if and when your income gets to a certain point, register a limited company. You need to get some actual work before registering with HMRC, they do not want a lot of people who register just in the hope of getting some work. You have one month after you start the work to register.

Doing freelance work in your spare time while still working on a PAYE basis is a very good way to start. However, conflict of interest may be a problem in your case. Starting small, building up something to fall back on in uncertain times, these are sensible decisions. They say that freelancers thrive in a recession. If you have low overheads, your prices can be competetive.

I suggest reading some recent posts in the Small Biz board as there have been some other IT people in the same position.

msn

Thanks for your replies guys, I'll check out the links

Regshoe

You will probably have something in your current employment contract saying that you have to inform your employer (and potentially have their consent) to do other paid work and I would imagine it probably covers running a business too (whether it is in the same sector or not).

msn

I'll check my contract, they're poor on that side of stuff at work lots of people are actually working without a contract.
Thanks

mizzbiz

The first stage is always market research/ viability studies /Business Plan! Business Link can help you loads with this.

Then worry about HMRC.