Right Forum for Self Employed questions??

Hammyman

tigeress289 wrote: »

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.

Sorry but this advice is not only incorrect but illegal. As soon as you start taking money for goods or services you have to register as self employed. The fact you make a profit or not is completely and utterly irrelevant. The fact you have a business plan or not is completely and utterly irrelevant.

InsideInsurance

If you are a sole trader (aka self employed) then you and the business are legally one and the same thing. There is no legal requirement for either a business account or even a separate personal account but by having a business account you could accept cheques made payable to your trading name. You may find that some personal bank accounts T&Cs also prohibit you using them for a business as personal banking tends to be free and its more common for business accounts to charge.

Insurance - will depend what you are actually doing. Normally if its just admin you can add it to your policy or it may be included as standard. If you are manufacturing (grandiose word but technically if your making things that is what it is), holding stock, holding raw materials, having customers/ clients/ suppliers visit your home then you will not be covered by a Home policy and will need to consider if its worth having a business policy.

It is somewhat similar with council tax, but they also will take into consideration if you are using an area of the home exclusively for business purposes or if it is all blended - ie if you turn your front room into a shop then you'd most likely need planning permission for change of use and start paying business rates. If you are doing a bit of home baking for sale using your domestic kitchen then you almost certainly dont have a change of use or business rates to deal with.

glasgowdan

Nope, you don't. If you are on 'training for work' via the job centre you are technically on benefits whilst making money. You check in with a business advirer periodically and eventually you get a date to go self employed; this could be many months after starting trading. Your money/profits are yours to keep and use in the business.

Hammyman wrote: »

As soon as you start taking money for goods or services you have to register as self employed.

Hammyman

glasgowdan wrote: »

Nope, you don't. If you are on 'training for work' via the job centre you are technically on benefits whilst making money. You check in with a business advirer periodically and eventually you get a date to go self employed; this could be many months after starting trading. Your money/profits are yours to keep and use in the business.

You still need to register as self employed with HMRC as soon as you start taking money. I don't know what the jobcenter advisor told you but I'll just say that they're frequently wrong.

glasgowdan

What's your authority on this? Do you work for HMRC? I have been through the system, done all the paperwork, been through subsequent tax returns and it's been done properly. Test trading is not being self employed, despite the fact you're making money. This money goes into the business account and you don't draw money from it. It's to be used solely in the business.

taxi73

please look on the HMRC website as what Horace and Hammyman are absolutely correct in what they are saying.If you don't register in time you are liable to a fine.

tigeress289

Fine for what, trying to start a business that might not take off ?
It is the OP's choice if they wish to register. I would never advise anyone to register with HMRC untill they have to. If everyone registered, HMRC would be snowed under. VAT levels are set at a certain figure to stop over registering. The same applies to self employed. The problems it can cause registering is to complicated for this post. I stick by my posts 100%

empressemma

LOL, this is what makes me confused!!
But thanks for all the interest shown.

So, a bit more info, I have finished employment, I am not claiming any benefits of any kind, I may be able to have a casual contract at a local school for extra help during exam time, but this hasn't been confirmed yet.

I will only be working 2 days a week as I have other commitments, and I don't see me making much more than £120 per week (and that would be a very good week!)

I will register as self employed in the new year, and hopefully find a free business account.

If by march-ish, the business isn't working, I'll have to go back to being employed.

Maybe this will make things a little clearer??
Thanks

tigeress289

I personally wish you the best for trying. The confusion comes when people advise that you register for everything. This is so wrong in most cases. There is nothing wrong or illegal in trying to start something without registering as self employed or opening a Ltd Company. It is you that decides what and when you do it. I am always trying things and if it works, then it can be amazing. However, most times it will just pay for itself. But we keep looking for the one that will change our life. all the best