Need alot of help (im a minor)

Elliot_Edwards

Hello everyone!

My name is Elliot, and im 15 years of age.
i want to simplify this post as much as i can.

Well the story goes like this:
I love saving and building fortunes, and ever since i can remember ive been trying to make profits.

Ive recently came up with a idea, that involves online marketing/trading and i wish to take another step further, but there is a brick wall right in front of me.

I have no knowledge at all on the money/tax side of businesses, and i would really love to know where to start, if anyone would give me a heads up.

What would i need to do with regards to tax and HMRC?
How would i sort the finances out?
How could i accept payments, as im not eligible for a pay-pal account?
What support am i entitled to?
Could a Parent/guardian be involved, so i can use paypal without abiding their t&c, but still have the money legally in my name?

Im really unsure, but ive asked what i think thats necessary, and i know you lot at moneysavingexpert will be able to sort this out for me. THANKS!

Elliot.

vixtay_2

Hi Elliot,
What business do you intend to start?
With regards to tax,hmrc and paypal etc...you need an adult.
Perhaps your family can help you sort it out.
I have had my business for a year(web design) it's going good,with payments my clients pay me via bank transfer or cheque so like i said before, hire your parents to do all the legal side,i get my 16 year old to do java movies etc and pay him. lol
Good luck to you,
Victoria.

Elliot_Edwards

vixtay wrote: »

Hi Elliot,
What business do you intend to start?
With regards to tax,hmrc and paypal etc...you need an adult.
Perhaps your family can help you sort it out.
I have had my business for a year(web design) it's going good,with payments my clients pay me via bank transfer or cheque so like i said before, hire your parents to do all the legal side,i get my 16 year old to do java movies etc and pay him. lol
Good luck to you,
Victoria.

Hi victoria,
The business is based on marketing electronical goods. I did read an article on Yahoo answers, stating the following:

"I want to start an eBay business and I'm 15. Questions about tax and national insurance?
Hi I'm keen to start an eBay business but I'm 15 (turning 16 in January). I have a few questions about running an eBay business in general and also about doing it at 16:
Do I have to declare myself as self-employed to HMRC, considering I'm still a student.
Would I have to pay tax as a sole trader who is under 16?
Would I have to pay national insurance, considering I haven't even got my number yet?

Any other information would be great, cos I'm clueless.
Thanks in advance
5 months ago Report Abuse
Additional Details
Mark - I'm not talking about selling my own stuff. I'm talking about opening a business account on eBay, buying stuff wholesale then selling. If you didn't realise you could do that then you obviously have no eBay experience. You DO have to pay tax as an eBay business.
5 months ago "

and the reply was this : "You seem to be pretty much on the ball here, and it looks like you have covered all the bases.

Tax is something you have to pay, regardless of your age. If you set up a business (whether a market stall or an ebay outlet) you need to register as self employed. This can be done fairly easily online. Have a look at (hmrc website) and follow the links "thinking of working for yourself".

Self employed people pay Class 2 NIC on a monthly basis. I think it is around 28pm. You will also pay Class 4 NIC on your profits, which is paid with your tax. You will not be liable to pay NIC until you are 16 years old (and you can stop paying it when you are 65).

Remember to keep a record of all your expenses and all your sales."

im really eager to start this up as ive seen great potential in this project. So are you 100% positive that there is no way possible, (excluding using parents) to run a online business, an additional say to this is wasnt there a teenager that was a online marketer on the apprentice? and he was under 18, how do you think he went about that?

sorry for my hassling, i just am to inpatient to wait 'till im 18.

Thanks so much Victoria!

Elliot.

paulofessex

Hi Elliot
Although l can't really give you advice regarding tax etc, what l wanted to say was for you to continue to reach your goal, it is possible there are many a young people who have and are still reaching their goals. One young person in particualr is a lad called Samuel Wooten of samspoultry.co.uk he started his business at 14-15yrs of age and he is making a great success and a name for himself in his particular field.

Don't give up, if you haven't got the support of adults as Sam Wooten has perhaps you could use the next couple of years to do all the research regarding competition, remember those who sell cheaply on ebay and the like have the funds to buy in bulk in order to be able to offer lower prices.

Have a look into dropshipping.

Best of luck with your venture

Elliot_Edwards

paulofessex wrote: »

Hi Elliot
Although l can't really give you advice regarding tax etc, what l wanted to say was for you to continue to reach your goal, it is possible there are many a young people who have and are still reaching their goals. One young person in particualr is a lad called Samuel Wooten of samspoultry.co.uk he started his business at 14-15yrs of age and he is making a great success and a name for himself in his particular field.

Don't give up, if you haven't got the support of adults as Sam Wooten has perhaps you could use the next couple of years to do all the research regarding competition, remember those who sell cheaply on ebay and the like have the funds to buy in bulk in order to be able to offer lower prices.

Have a look into dropshipping.

Best of luck with your venture

Hi, thank you, i have looked into droppshipping many times, ill need to research deeper into this field to fully understand. Isnt it where someone buys a product and a supplier sends the item directly to the consumer, thus you make profit from the cost from storing, shipping, processing that would occur if the item was sent out to a high-street retailer? But my main problem with aqquiring products to re-sell is finding the correct supplier, Ive seen websites like esources, and alibaba, but i dont completely trust them. Is it possible to contact the official manufactures or would that require a well recoginzed status, and wealth? :think:

I would like to approach wholesaling, but like you mentioned it requires a large sum of money to begin the whole process, i do currently sell on a personal ebay account, that has been set up by myself, but i would like to set up a business account, just to allow me to progress.

Thanks so much to your contribution,
Elliot.

Mk14:37

Elliot, your local Business Link should be able to give you plenty of good advice about setting up your business, as well as information on any government-backed support schemes available to you. Check out https://www.businesslink.gov.uk

Premier_2

Elliot_Edwards wrote: »

Hi victoria,
The business is based on marketing electronical goods. I did read an article on Yahoo answers, stating the following:

"I want to start an eBay business and I'm 15. Questions about tax and national insurance?
Hi I'm keen to start an eBay business but I'm 15 (turning 16 in January). I have a few questions about running an eBay business in general and also about doing it at 16:
Do I have to declare myself as self-employed to HMRC, considering I'm still a student.
Would I have to pay tax as a sole trader who is under 16?
Would I have to pay national insurance, considering I haven't even got my number yet?

Any other information would be great, cos I'm clueless.
Thanks in advance
5 months ago Report Abuse
Additional Details
Mark - I'm not talking about selling my own stuff. I'm talking about opening a business account on eBay, buying stuff wholesale then selling. If you didn't realise you could do that then you obviously have no eBay experience. You DO have to pay tax as an eBay business.
5 months ago "

and the reply was this : "You seem to be pretty much on the ball here, and it looks like you have covered all the bases.

Tax is something you have to pay, regardless of your age. If you set up a business (whether a market stall or an ebay outlet) you need to register as self employed. This can be done fairly easily online. Have a look at (hmrc website) and follow the links "thinking of working for yourself".

Self employed people pay Class 2 NIC on a monthly basis. I think it is around 28pm. You will also pay Class 4 NIC on your profits, which is paid with your tax. You will not be liable to pay NIC until you are 16 years old (and you can stop paying it when you are 65).

Remember to keep a record of all your expenses and all your sales."

im really eager to start this up as ive seen great potential in this project. So are you 100% positive that there is no way possible, (excluding using parents) to run a online business, an additional say to this is wasnt there a teenager that was a online marketer on the apprentice? and he was under 18, how do you think he went about that?

sorry for my hassling, i just am to inpatient to wait 'till im 18.

Thanks so much Victoria!

Elliot.

I'm confused.

What is your business idea exactly?

You can't run online marketing via ebay, and at 15 you shouldn't even be on ebay.

Hopefully, as you are probably aware, the electrical goods section is a rapidly moving one, and even if you are still keen to pursue your career in this direction in 3 years time, the situation is likely to be be very different then.

In the meantime, I suggest you carry on with your research

I thought the winner of this years young apprentice made his business by repairing computers from home, not online marketing for others. (and I get the feeling he was being fully supported by his parents in this venture)

Elliot_Edwards

Premier wrote: »

I'm confused.

What is your business idea exactly?

You can't run online marketing via ebay, and at 15 you shouldn't even be on ebay.

Hopefully, as you are probably aware, the electrical goods section is a rapidly moving one, and even if you are still keen to pursue your career in this direction in 3 years time, the situation is likely to be be very different then.

In the meantime, I suggest you carry on with your research

I thought the winner of this years young apprentice made his business by repairing computers from home, not online marketing for others. (and I get the feeling he was being fully supported by his parents in this venture)

Hi, i must of gotten it mixed up about the marekting, sorry i was lost in a zone:shhh:. And about repairing computers, thats something i do as a hobby, i buy are repair, then sell, or i just repair... ive got a massive list of things ive done +100 items, all ranging from ipod battery replacements, rrod fixing, screen replacements, optical replacements, virus removal.... ect, i was going to incorporate this into the current idea but I cant go into specific detail with my business idea, since ive learnt from my mother, never tell anyone your idea, until its fully situated. (although i do have a running website, but its not yet fully compatible with the requests that i would desire for it to do)

And with regards to under-age sellers on ebay, i am aware of it being against their T&C, but if i maintain a good feedback, and abide by every rule (apart from the age one) i think its acceptable. My theory on this is, any kid could do a car bootsale, why cant he do one online. (the reason is that minors cant be bound with a contract, as ebay have no legal power over you is that correct?)

sorry if it doesnt make much sense, ive literally gotten up, ive been poorly.

Thanks,
Elliot.

steve1980

Elliot_Edwards wrote: »

Hi, i must of gotten it mixed up about the marekting, sorry i was lost in a zone:shhh:. And about repairing computers, thats something i do as a hobby, i buy are repair, then sell, or i just repair... ive got a massive list of things ive done +100 items, all ranging from ipod battery replacements, rrod fixing, screen replacements, optical replacements, virus removal.... ect, i was going to incorporate this into the current idea but I cant go into specific detail with my business idea, since ive learnt from my mother, never tell anyone your idea, until its fully situated. (although i do have a running website, but its not yet fully compatible with the requests that i would desire for it to do)

Is this not done by hundreds of companies already? rrod fixing? What's that? Or is it iPod fixing?

Elliot_Edwards wrote: »

And with regards to under-age sellers on ebay, i am aware of it being against their T&C, but if i maintain a good feedback, and abide by every rule (apart from the age one) i think its acceptable. My theory on this is, any kid could do a car bootsale, why cant he do one online. (the reason is that minors cant be bound with a contract, as ebay have no legal power over you is that correct?)

Rules need to be adhered to. No exceptions.

Elliot_Edwards

steve1980 wrote: »

Is this not done by hundreds of companies already? rrod fixing? What's that? Or is it iPod fixing?



Rules need to be adhered to. No exceptions.

Hi steve, yes i know its done by a lot of companies, but from my experience, its been rather sucsessfull, through just my school freinds ive made a rough £1000 net profit, in less than 4 months, and i do think that that is fair as 1000 is a lot of money (for a teenager to single-handedly make), and if i were to do it on a slightly larger scale.. think of the possibilities. My tactic, is beating the price, loads of companies fix xbox'es (rrod) and charge £60, where as the materials to fix it only cost a mere £2 and it can be done in 5 minutes , and by beating their price, say about £50 people will do anything to save a buck, dont you moneysavingexperts know that?

Yes, and i understand rules need to be adhered, but i just think its unfair.

Thanks,
Elliot.:)

steve1980

I hope you have advised the HMRC about your self employed status as you have to within 1 month of starting your business.

I would carefully read the following website.

http://www.hmrc.gov.uk/selfemployed/index.shtml