Self employed

DCFC79

A friend of mine has started doing some work she likes but i was wondering if there are websites i could pass on to her to read. Also i take it as she is working for herself does she have to create her own ltd company, ive asked her if she's told the tax office she is SE.

pitkin2020

As above she can register as a sole trader or a LTD company, LTD is a little more complicated and depending on what she is doing sole trader will be more than adequate. Check out the business link website plenty of info on there to get you started, plus you can phone HMRC they are actually quite helpful at times.

DCFC79

Truemanbrown wrote: »

No, she does not have to set up her own limited company.

She needs to inform the Inland Revenue that she is self employed by completing and submitting the Form CWF1 which can be downloaded from the Inland Revenue site.

oh i see, i thought a ltd co was needed, ill let her know about that form.

thanks

pitkin2020 wrote: »

As above she can register as a sole trader or a LTD company, LTD is a little more complicated and depending on what she is doing sole trader will be more than adequate. Check out the business link website plenty of info on there to get you started, plus you can phone HMRC they are actually quite helpful at times.

she does nails, i guess its like fake nails but decorating them, ill let her know about the business link site,

thanks

pitkin2020

DCFC79 wrote: »

she does nails, i guess its like fake nails but decorating them, ill let her know about the business link site,

thanks

On that basis a ltd company would be overkill and a sole trader would be all she really needs. Literally all she has to do to become registered is call HMRC and inform them form when she starts the business. Thats the legal side of it done....simples.

PlutoinCapricorn

She will need public liability insurance. She will also need to keep good records and evidence of income and expenses.

DCFC79

PlutoinCapricorn wrote: »

She will need public liability insurance. She will also need to keep good records and evidence of income and expenses.

yes shes already keeping record of what shes bought from ebay and keeping track of anything else she buys, she wants to buy a pc to get it all on a spreadsheet, ill mention about the insurance to her.

PlutoinCapricorn

Getting a PC and keeping records on a spreadsheet are good ideas, as is scanning paperwork. The PC will be an allowable expense.

https://www.businesslink.gov.uk shows the steps and issues: you need to decide what is needed for a particular business.

There is also the question of putting money aside for tax and NI. Has she got a PAYE job? If so, she will have used up her personal allowance.

DCFC79

PlutoinCapricorn wrote: »

Getting a PC and keeping records on a spreadsheet are good ideas, as is scanning paperwork. The PC will be an allowable expense.

www.businesslink.gov.uk shows the steps and issues: you need to decide what is needed for a particular business.

There is also the question of putting money aside for tax and NI. Has she got a PAYE job? If so, she will have used up her personal allowance.

ive no idea to be honest but ill try and ask her at some point, i think ill create a list of things to ask her.

Premier_2

DCFC79 wrote: »

yes shes already keeping record of what shes bought from ebay and keeping track of anything else she buys, she wants to buy a pc to get it all on a spreadsheet, ill mention about the insurance to her.

You've not really said what the business is and so public liability insurance may not be necessary.

Public liability insurance is to cover possible claims from third parties such as if customers visit your friend (or your friend visits them) and an accident occurs.
It can also cover negligence claims against your friend, but if your friend is simply buying and selling goods by mail order then a claim of negligence may not be a realistic risk (depending on the type of goods being sold)

DCFC79

Premier wrote: »

You've not really said what the business is and so public liability insurance may not be necessary.

Public liability insurance is to cover possible claims from third parties such as if customers visit your friend (or your friend visits them) and an accident occurs.
It can also cover negligence claims against your friend, but if your friend is simply buying and selling goods by mail order then a claim of negligence may not be a realistic risk (depending on the type of goods being sold)

I thought i mentoined it on post 4, its nail extensions, pedicures, manicures. I think she is advertising herself as being mobile but also customers can go to her house to get it done.

Premier_2

DCFC79 wrote: »

I thought i mentoined it on post 4, its nail extensions, pedicures, manicures. I think she is advertising herself as being mobile but also customers can go to her house to get it done.

Whoops, I missed that.

Yes she certainly should have insurance for that line of business. She should consider professional indemnity insurance too