Help! Advice needed

joesaunt

I am working full time and pay tax and NI via my employer. However, I want to set up a small business to run a longside my fulltime job until I can leave it and run my business fulltime (small steps at a time).

Please can someone be kind enough to take a few mins to explain what I need to do!

I need help knowing how to register a new business (or if I need to) what to do to pay the tax man. Not concerned about VAT as that will be a long long way off in the future. What can I "offset" against tax, ie premises rental, fuel, website etc etc.

Any advice would be greatly recieved, or even if you could point me in the right direction that would be wonderful.

Many many thanks

Joesaunt.

paulwf

A very good place to start is the Business Link website (or your national equivalent) which explains things in a clear way so it is worth putting some time aside to read it properly. You can then call them up and discuss anything and book on their free startup courses which will go into more detail.

Your main decision will be whether to start out as a limited company or sole trader. This is a question for an accountant although if you give some details about the nature of the job and how soon you expect it to be your full time occupation it might be possible to give some indications here.

BTW at first it might look like there is a lot to organise but when you break it down each step is fairly small and you can probably do all the setup admin in a morning and then there is just a little bit to keep on top of every month.

joesaunt

Thanks!

I am a qualified HypnoBirthing practitioner and that is what my business will be. I intend to start by running classes in the evenings and weekends for mums to be. I have had over 18 months experience so far (most of which has been unpaid, to gain experience and testimonials, the only payment I have recieved so far is to cover my costs, eg petrol and the course material which I have bought for the mums).

Eventually once I am established I will want to be doing this instead of my regular job (as a boring office manager :-)) I am hoping withhin the next year it will be full time.

I have been in touch with local private midwives, doulas and the national childbirth trust and I know there is a massive market for this, and I appreciate full time work will not happen overnight, hence keeping the day job. I have also got appointments at some of our local hospitals to "peddle" my wares so to speak and then they will see if they can accommodate me in the hospitals, or at least promote HypnoBirthing to the mums.

I have a few offers of rooms to rent (church halls etc) and would only pay as I go with them. Most of which are very supportive over my ambitions.

I have a website, which is linked to the HypnoBirthing institute and have regular queries from this and am now turning the queries into paying clients.

It is hard work, but I know it will be such a good thing to do.

I don't know very much about limited companies or sole traders, but will look into both. I think a sole trader will be probably the route to go down. If I have no clients, then it doesn't cost me anything except advertising. Also, the course material will not be ordered or printed till I have clients to do that. The printing and material is paid up front and the mums also pay upfront for the classes. Nothing is run on credit so won't be owing anything or have any risk of home being repossed.

I appreciate every little bit of advice and help I can get. The knowledge of people on these boards is phenominal and greatly appreciated.

Thanks again.

My main concern is paying the tax man!!!!!!!!! I need to be sorting that out properly first!

I also need a business bank account, which I see there are threads on here discussing them

paulwf

Sounds interesting!

If going down the sole trader route once registered with HMRC you just do a self assessment once a year online, it basic terms you put in your income and expenditure and you pay tax on your net profit. It is a very good idea to put some money aside month by month because the self assessment date is the beginning of April and then you might not pay that for a few months...so if you earn money now it might be a year before you pay the tax on it which could come as a shock if you don't budget for it!

You'll also need to speak to HMRC about national insurance...if you are over the threshold they'll set up a direct debit.

joesaunt

Thank you again

You have really been a help.