Sales tax

ILW

You need to take overheads and fixed costs into account as a ratio to turnover and gross profit before you can estimate CT.

martindow

Dannycelluk wrote: »

Our prices will also be undercutting alot of other shops that sell at alot higher prices.

Why not price as high as you can? I think you need to make hay while you can.

Someone else will sooner or later discover your source and be able to undercut and compete with you.

Dannycelluk

Thanks for the comments

People normally go to a shop to see the products we sell, and it is hard toshow customers what the product looks like via a picture on a website.

We want to start off by providing the customers with an introductory offerso they can buy the item cheap. Then when we gain the trust of thecustomers and they realise the quality of the product is greater than in shops and else where, they will come back, evenat the greater cost.

We are relying on repeat purchases from loyal customers.

terra_ferma

When pricing my products I use a spreadsheet with all the formulas, and I also add a percentage to cover items not received, returns and shrinkage (theft, fraud, write offs), as they apply to my business.
At first you'd have to use an educated guess, then you can use actual figures to work out percentages.
The % will depend very much on the type of items you sell, and your customers' demographics.

Good luck with your business!

AbbieCadabra

Dannycelluk wrote: »

Yes I started a limited company, my bro earns less than 20k and I earn more than 40k so I need to find the most tax efficient way to pay both of us, i heard dividends maybe the bezt way? we might not claim anything for the first year tho, and put it all back into equipment/stock. Where did you get the 28.33% from?

you've started a Limited Co.? so you fully understand your responsibilities, what you have to file/when etc.?

some guidance here if you need any more info, you really would be better off getting an accountant some time soon as filing Limited Co. accounts at companies house is not easy!

good luck

Dannycelluk

AbbieCadabra wrote: »

you've started a Limited Co.? so you fully understand your responsibilities, what you have to file/when etc.?

some guidance here if you need any more info, you really would be better off getting an accountant some time soon as filing Limited Co. accounts at companies house is not easy!

good luck

Thanks for the reply

I dont understand it all yet, no. The company has only been set up since November.

I understand i need to let HMRC know within 3 months of when i start trading. and i know i need to file my first return 1 year after this.

is that correct?

When we start bringing in some money, then i will get an accountant, but it doesnt make sense to pay £160 a month for an accountant while we are not trading.

Dannycelluk

terra_ferma wrote: »

When pricing my products I use a spreadsheet with all the formulas, and I also add a percentage to cover items not received, returns and shrinkage (theft, fraud, write offs), as they apply to my business.
At first you'd have to use an educated guess, then you can use actual figures to work out percentages.
The % will depend very much on the type of items you sell, and your customers' demographics.

Good luck with your business!

Yeh thats what i thought, i needed a baseline figure to start off at, then depending on how many items we are selling a month depends how much mark up they will need.

Thanks

AbbieCadabra

Dannycelluk wrote: »

Thanks for the reply

I dont understand it all yet, no. The company has only been set up since November.

I understand i need to let HMRC know within 3 months of when i start trading. and i know i need to file my first return 1 year after this.

is that correct?

When we start bringing in some money, then i will get an accountant, but it doesnt make sense to pay £160 a month for an accountant while we are not trading.

Companies house guidance info https://www.companieshouse.gov.uk/director/ https://www.companieshouse.gov.uk/about/guidance.shtml

Might be worth checking out online accountants, see the earlier link i gave. We use them, very happy with the service & it's less than £60 per month.

Dannycelluk

thanks ill check them out!

I formed the company through companies made simple, so they filed all the required paperwork with companies house i believe.

AbbieCadabra

For the formation yes, it's your ongoing reporting responsibilities you must be aware of.