Employed to self employed , help

DAREDEVIL78

Hi , to keep this brief i am currently unemployed and was thinking of going self employed with a business idea in mind.
I have never been self employed and wondered where members on here think i should start, i have looked at the HMRC website on this subject but advice from this site would be great.
I am under no illusions and probably accept that people will say its easier said than done but i am brassed off with the normal searching for jobs at minimum wage and want to try and do things different.

My idea is to be a 'one man band' business using alot of contacts with different types of business in the area to deal with scrap metals/recovery of vehicles/selling vehicles/vehicle spares.( a bit of anything really). I was going to use a vehicle also such as a transit van.
I was planning on using my home address as my business address working from a spare room/computer based therefore so i dont need any business premises therefore no business rates ?? is this right ??

I have been employed in this type of work for years and my knowledge is good but find it daunting to go it alone on my own.

I appreciate it may seem early days in thoughts wise but any advice would be gratfully received, thanks.

heretolearn_2

Yes, if you just work from a home office you won't need to pay business rates on that but...where are you going to keep all this scrap metal/cars/spares etc. That won't all fit in your spare room You are going to need some premises for storage and those will be liable for rates. If you were thinking of using your garden, think again, your neighbours will complain about business use of a residential property, ( a desk inside is one thing, a bunch of old bangers/washing machines/scrap in your drive is quite another) you'll probably be breaking all sorts of by-laws, and of course waste treatment/storage/transport needs a licence.

DAREDEVIL78

Thanks again , yes i understand regards license's regards waste etc but i was planning on scrap metal disposal on a small scale such as collecting and taking it to a merchants within the day and selling vehicles would be a joint thing with a local family related business who will sell the vehicles on his premises and we will share the proceeds, also same applies with storage of parts.

I think my aim is knowing that i am a one man band outfit that at least the fact of it being small scale means no major demands such as outgoings and therefore no major pressure to earn megabucks to make it pay, just a nice little wage at the end of the week ?? If it all works out , lol.

Horace

You will need to register as self employed with the HMRC and you will need to pay Class 2 NI but if you are on low income you can apply for an Exemption of Class 2. You may also be able to claim Working Tax Credits.

You can get some free business advice from Business Link and certainly from your local chamber of commerce.

Be prepared to work for less than minimum wage - self employment can be extremely tough and you will work harder than you have ever worked in your life. I know because I am self employed and when I started out I had big ideas as to how much money I would earn - I certainly over estimated the sales and to a certain extent underestimated the cost of setting up as a sole trader. So forewarned is fore-armed.

Remember to keep your receipts and keep basic books showing your outgoings and income - you will need this information for your self assessment tax return.

Good luck