Right Forum for Self Employed questions??

empressemma

Hello there money saving people!!

Not really sure if this is the right forum... please direct me if i'm wrong...

I finished 'work' at the end of last month, and am starting up my own business, working from home making Curtains and other soft furnishings.

I have a million (well maybe not quite that many) questions about how to set up, bank accounts etc. I have been on the business link website and the HMRC website, but I just get muddled at everything.

Any chance that any of you fine people can help???

Thanks in advance,
'Empress' Emma x

Caroline_a

Might be easier if we knew what questions you wanted to ask..

InsideInsurance

There is http://forums.moneysavingexpert.com/forumdisplay.php?f=27 for self employed/ SME type questions

tigeress289

Its very simple but as already posted ,need an idea of sales/business?

empressemma

Hi, its been a very busy weekend, so have just checked the website.
Thanks for your replies, I didn't post my questions first in case I had got the wrong forum, but if you're willing to help.....

As I said, I've only been working for myself for a month, and its just part time, so my earnings are very small (and its taking a while to gather customers)
My next job is to register as self employed, I know that one!
Do you have to have a business bank account from the start? I have to admit that I've just been using my personal one, but have been keeping careful records of all ingoings/outgoings.
Also, regarding council tax, do I need to let them know that I'm working from home, its just 2 days a week using my dining table!!
Same question about house insurance....

thats it for now... Many Thanks

Slinky

You're as well opening a separate account to keep Mr Taxman from wanting to poke about in the records of your personal account.

Council tax isn't affected.

House insurance it may be worth telling them just to dot the I's and cross the T's, I suspect there won't me much at risk unless you have particularly expensive cloth. They would be more concerned if you had customers visiting your home and somebody had an accident, but by the law of averages the risk of that is pretty low. Presumably you will be visiting your customers in their home.

If you have a car you should really insure that for business use. Provided you are not really young or a bad risk, generally it doesn't add much if anything to your premium. Don't forget you can claim 45p per mile expenses to reduce your declared income to the tax man.

empressemma

Thanks, does it have to be a business account or just a separate bank account?

Cheers, Emma

tigeress289

Hello, the honest answer to going self employed , is keep a record of all your outgoings(purchases). Do not jump into the mode of registering as being self employed, untill you have to. Take your time, as you have a clear year before you are liable for any returns. It sounds like its a slow start. You can use your account rather than start another and if things pick up then think about it then. Find your market and customers first and the rest will fall into place. There is nothing stopping you running it as a hobby to begin with.
If things start to get busy , think about getting a business plan together and as you expand ,you can then open a new business account. We can all think big but just get it going first. Walk before you run, you are in the driving seat. Good Luck

Horace

tigeress289 wrote: »

Hello, the honest answer to going self employed , is keep a record of all your outgoings(purchases). Do not jump into the mode of registering as being self employed, untill you have to. Take your time, as you have a clear year before you are liable for any returns. It sounds like its a slow start. You can use your account rather than start another and if things pick up then think about it then. Find your market and customers first and the rest will fall into place. There is nothing stopping you running it as a hobby to begin with.If things start to get busy , think about getting a business plan together and as you expand ,you can then open a new business account. We can all think big but just get it going first. Walk before you run, you are in the driving seat. Good Luck

Your post is a tad misleading, there is the implication that the OP does not need to register their self employed status with the HMRC for a year, as soon as the business starts is when you register with the HMRC because if you leave it longer and they think that you have been trading for longer then they will fine you.

OP - you can get free advice from Business Link and your local Chamber of Commerce (they will often run free courses on how to set up a business, the legalities and how to write a business plan). Don't put all your eggs in one basket either - keep up with some part time paid employment because times are tough. I am self employed and looking for either full time or part time paid employment because I have no work coming in at all and it is not for want to trying.

Good luck with your endeavours.

Hammyman

empressemma wrote: »

Thanks, does it have to be a business account or just a separate bank account?

Cheers, Emma

It depends on your bank. Virtually all banks offer free business banking for 18 months or so anyway.

tigeress289

What I am saying ,is dont jump in a going self employed without testing the waters first. The next thing people will be telling her to VAT register. There is no need to register for anything at this moment as its not even certain if the business could make money. I always suggest , anyone keeps it simple to begin with and then goes from there. It is only when you have a business plan in place that you would need to take into account HMRC and accountants ect. To many people fall into the registering for everything before they have even tried and then their problems start. Keep it simple to start with as I said.