Small time self emplyment at home.

rogerblack

Am I missing anything out on the below?

I'm on Employment and Support allowance, due to Chronic Fatigue.

I'm in Scotland, if this is relevant.

I'm trying to work out the legalities of 'permitted work', which would enable me to work for the hours (more like 20 minutes here and there spread throughout the week) I can, while getting some income, perhaps eventually leading off benefit, though at this time 16 hours/week is looking unlikely. Profit perhaps 1K/year initially, income somewhat more than this. Perhaps a total of 2-3 hours a week.

I more or less understand the DWP side, and have set that in motion.

As I understand it, to set up as a sole-trader, I simply need to notify HMRC that I am, and apply for a small income exemption from NICs.

How do business rates work?
I'd be doing this from home, so if I have no dedicated space, or the proportion of my property used is very small, this should fall below the threshold, and also be exempt?

Clearly, dedicate one bank account to the business.

I gather that setting up a company at companies house isn't something that's appropriate - looking over the options - or have I missed anything.

I'm not a taxpayer - my sole income at the moment is ESA of around 100/week.

This would be entirely from savings, and would not require any external funding.

Andy2011

I think you are taking things a step too far - test the water, see if it works out before you make commitments. Keep records of what you are doing, what you spend, what you make, and invoices too. 2 Folders and a spreadhseet will do, money in vs money out with a bank balance. If you are doing as little as 2-3 hours a week, I think you would be hardpressed to say it's "work" and until you are flagged on it, you might want to say it's a hobby or something. If it works out, you can take the time to build the business before taking the next steps (and you will have all the records if anyone ever asks). If it doens't, no worries. Good luck!

flexrider

Andy2011 wrote: »

I think you are taking things a step too far - test the water, see if it works out before you make commitments. Keep records of what you are doing, what you spend, what you make, and invoices too. 2 Folders and a spreadhseet will do, money in vs money out with a bank balance. If you are doing as little as 2-3 hours a week, I think you would be hardpressed to say it's "work" and until you are flagged on it, you might want to say it's a hobby or something. If it works out, you can take the time to build the business before taking the next steps (and you will have all the records if anyone ever asks). If it doens't, no worries. Good luck!

I could not agree more with this MSe user, Any business starts with a passion for something.You need to forcast your projections of income spent and out the business very for example if you did xxx for business with income coming in how your business starts making profit or risk loss due to supplies or costs,

i suppose you watch dragons den? Have you seen when the dragons ask what will be your profit in year 1 in turnover, The reason they ask that is for a investor to invest on return. its the same point with banks or personal investment they want to know what makes the business ticks so doing what the first MSE user said is vital.

rogerblack

Andy2011 wrote: »

I think you are taking things a step too far - test the water, see if it works out before you make commitments.

Unfortunately, my ability to do this is sharply limited by the rules around ESA and permitted work.

For example, permitted work is ignored, when it's time for the reconsideration of your condition, nonpermitted work is not.

Though 'trivial' amounts are disregarded, any earnings at all are normally taken off ESA, with no earnings disregard at all.

Then there are issues around my claim potentially being ended, and appeals taking most of a year, during which I'd be on 65/week - which I would find it difficult to survive on.

Hence the need to do this 'properly'.
Thanks for the advice.

I find it depressing that it's easy for me to do a minimum wage job for 12 hours a week under the regulations, yet setting up as self employed in a way that may earn a similar amount of money is a hideous minefield, with no help at all, other than several hundred pages of sometimes contradictory 'decision makers guidance'.

tigeress289

My advice is to always test the water first,when thinking of starting a business. Jumping in and registering as self employed straight away can lead to so many problems. And yet the amount of advice I read on this site, stating just that, is beyond belief. Doing it the so called right way, has so many drawbacks, if things do not work out. Keep it simple and to yourself, if it works then all well and good. There is no help out there for people trying to start a business, full stop.