new business advice

POPPYOSCAR

[QUOTE=Savvy_Sue;41669612]too many negatives in there for this time of night! brain has seized up on me.

I think what the person was saying (and they are no longer able to say it for themselves) was that HMRC didn't require you to register if you were eg doing ironing for a friend once a week and being paid a fiver for it, giving you a gross income of £250 pa which is clearly under the tax threshold (assuming no other personal income). And that HMRC really didn't want everyone earning JUST a fiver a week to register, because they didn't have the resources to deal with it.

Now clearly, this causes problems when you start by earning a fiver a week, but then 25 more friends ask you to do their ironing and you realise you should be charging each of them £50, and suddenly you have a very different business model. And I don't know what HMRC would say to that.

Also there is very definitely confusion - and AFAIK there is no clear guidance - on when you have to register, or at what point they will fine you for late registration. Again, suppose you do this ironing for a couple of weeks, and then think "Actually, I don't really like ironing, I'd rather cut back on food and spend my time cooking Old Style". Technically you should have registered, actually it would have been a great waste of time, because you've only got an income of £10 and now you've stopped 'trading'.

That is the gist of the argument as I remember it being presented.

That's why I say phone HMRC and ask them!

Maybe one of the current tax / accountancy professionals can give better advice than this ...[/QUOTE]



Sorry about that I think its my brain that has seized up I will edit my post!!

Thanks I understand now.

newbie2011

Hello Everyone,

Thanks for all the advice above, id like to ask one more thing.

I need to buy the stock now for the business, what if any tax benefit will I get if the the stock about £500 is bought in this tax year, when all the first sales will happen in the next tax year.
What I think im trying to say is the business in the first tax year is going to be in a loss. In this tax year in my current job (not part of the business) I will have earned about £32000, will I be able to claim some tax back on this? Hope this makes sense!

steve1980

Do you need to buy stock now? Or can you wait 3 weeks?

Premier_2

newbie2011 wrote: »

Hello Everyone,

Thanks for all the advice above, id like to ask one more thing.

I need to buy the stock now for the business, what if any tax benefit will I get if the the stock about £500 is bought in this tax year, when all the first sales will happen in the next tax year.
What I think im trying to say is the business in the first tax year is going to be in a loss. In this tax year in my current job (not part of the business) I will have earned about £32000, will I be able to claim some tax back on this? Hope this makes sense!

If you buy the stock this year which results in a trading loss this year, you can carry forward that loss and off-set it against profits you hopefully make next year when you hopefully sell the stock

newbie2011

Thanks everyone

Kiramanic

Just a quick note on the business bank account issue, while there's no legal requirement to open one you could be going against the terms of use of your personal account if you accept business payments through it, so probably best to check the small print.

It's also worth getting a business account for the comedy-sized chequebook they give you, if nothing else!

newbie2011

Well I have eventually launched my website today!

Wish me luck! Thanks to everyone who replied! x


(its in my bio if anyone wants to look at it, im aware im not able to promote it on here)

POPPYOSCAR

Kiramanic wrote: »

Just a quick note on the business bank account issue, while there's no legal requirement to open one you could be going against the terms of use of your personal account if you accept business payments through it, so probably best to check the small print.

It's also worth getting a business account for the comedy-sized chequebook they give you, if nothing else!

Who do you bank with then? Ours is the same size as all our other cheque books.

Savvy_Sue

POPPYOSCAR wrote: »

[/B]

Who do you bank with then? Ours is the same size as all our other cheque books.

ours are larger than a personal cheque book, but another charity I've had links with are 'normal' sized.

steve1980

newbie2011 wrote: »

Well I have eventually launched my website today!

Wish me luck! Thanks to everyone who replied! x


(its in my bio if anyone wants to look at it, im aware im not able to promote it on here)

Good luck.

A few things to mention with regard to your website.

The registrant is down as:

Create Internet Ltd

Registrant type:
UK Individual

Registrant's address:
Unit 5E Westergate Business Centre
Westergate Road
Brighton
East Sussex
BN2 4QN
United Kingdom

I assume this is not you and you have paid a web design company to build this for you. All domains should be registered in the persons name not the company.

The pictures are not very good quality either. They are quite dark. The site doesn't have a wow factor. Sorry, it's just my view as a web designer.