Few Questions on Starting up a Business (Opinions welcomed)

neo1607

So i've been thinking this over for a while but I don't really know where to start.

Basically the plan of the business would be a PC / Phone Repair shop as well as selling PC / Phone accessories etc...

On top of this I also had the idea to offer a PC Training course for people unfamiliar with computers (I know a few different software suites that handle this sort of thing)

I Live in a small town and I am very well known for doing the odd jobs on the side just now for PC and Phone repairs anyway so customers wouldn't be a problem as word of mouth is already widely spread

Basically what I would like to know is:

1) Best Place to get a small loan for starting up a business (i've been informed that business gateway can also offer another £1000 free startup grant)

2) Best bank for around 12 - 18 months free banking

3) How to go about actually registering the business and sorting stuff with HMRC (Currently I am already employed as well as self employed with my own shop)

4) Am i better speaking to a Solicitor/Accountant first to help me sort all this out so I don't trip myself up?

I would be planning to keep my current job and running this side venture in my evenings and weekends (which from opinions i've been getting this could benefit people since most people work during the day)

Also my credit rating is average/good so I don't know if I would struggle with a loan for starting up?

Thanks to anyone that can help

Mistral001

neo1607 wrote: »

So i've been thinking this over for a while but I don't really know where to start.


1) Best Place to get a small loan for starting up a business (i've been informed that business gateway can also offer another £1000 free startup grant)

2) Best bank for around 12 - 18 months free banking

3) How to go about actually registering the business and sorting stuff with HMRC (Currently I am already employed as well as self employed with my own shop)

4) Am i better speaking to a Solicitor/Accountant first to help me sort all this out so I don't trip myself up?

2. No such thing as registering business in the UK unless you want to set up as a Ltd company.
3. You contact HMRC and tell them about your extra taxable income.
4. An accountant would probably be a good idea (I am not one by the way). They will be able to tell you what to do and also what you do not need to do, but they will not help you avoid tax. Unless you are forming a partnership with someone, it is unlikely that a solicitor would be needed, though you might need one to look at any leases that are asked to take out for shop etc.

PS. No1. I left out as know nothing about business loans. Though I would say that most small businesses do not have loans and work with more than adequate capital. your accountant will probably tell you that. Mine told me that when I started and I found out that it is very very true.

neo1607

Mistral001 wrote: »

2. No such thing as registering business in the UK unless you want to set up as a Ltd company.
3. You contact HMRC and tell them about your extra taxable income.
4. An accountant would probably be a good idea (I am not one by the way). They will be able to tell you what to do and also what you do not need to do, but they will not help you avoid tax. Unless you are forming a partnership with someone, it is unlikely that a solicitor would be needed, though you might need one to look at any leases that are asked to take out for shop etc.

Im not looking to avoid tax, the accountant would be to help me make sure im paying my tax correctly

I think also at first I would probably run this business from home at least for a couple of months, help cut down the rent/lease costs

Mistral001

neo1607 wrote: »

Im not looking to avoid tax, the accountant would be to help me make sure im paying my tax correctly

I think also at first I would probably run this business from home at least for a couple of months, help cut down the rent/lease costs

I did not imply that you wanted to avoid paying tax though even if you did you would not be doing anything illegal. It is tax evasion that is illegal. However, most accountants cannot really advise on "saving tax" or being "tax efficient" which is class as avoidance. As you say you want the correct tax to be paid.

Savvy_Sue

I would encourage you to look at ways of starting the new business without taking out loans: starting from home is a good first step.

However, I'm a bit confused by how you're going to offer a service from a shop if you're already employed AND self-employed. Don't get me wrong, you can work whatever hours you choose, and open your shop when you like, but when you DO open a shop, you need to be there when you say you will, or people will go elsewhere (and I can think of half a dozen phone repair / accessory shops in our city centre, so do check there's actually a market out there for you!)

neo1607

Savvy_Sue wrote: »

I would encourage you to look at ways of starting the new business without taking out loans: starting from home is a good first step.

However, I'm a bit confused by how you're going to offer a service from a shop if you're already employed AND self-employed. Don't get me wrong, you can work whatever hours you choose, and open your shop when you like, but when you DO open a shop, you need to be there when you say you will, or people will go elsewhere (and I can think of half a dozen phone repair / accessory shops in our city centre, so do check there's actually a market out there for you!)

Well i wouldn't be running it from a shop to start with, i would be doing it from home and it would be in the evenings and weekends which is more suitable for most people anyway, and i do get a lot of business already (currently do it for free most of the time if it's just little odd jobs) which is why i was looking at doing it officially so i don't get stung for missing tax or anything

In the town i live in there is no other repair / accessory shops which is why i think this would be a good idea for me

gb12345

neo1607 wrote: »

1) Best Place to get a small loan for starting up a business (i've been informed that business gateway can also offer another £1000 free startup grant)

How small is small?

How much capital would you be looking to put into the new business?

What do you need the loan for as you will be based at home and appear to already be doing the work unofficially, so would I assume have the equipment needed.

neo1607

gb12345 wrote: »

How small is small?

How much capital would you be looking to put into the new business?

What do you need the loan for as you will be based at home and appear to already be doing the work unofficially, so would I assume have the equipment needed.

Suppose instead of loan i could have said credit card or something, basically some money to sort out a proper office at my home, like a proper desk, a chair, a dedicated office pc and get a small stock of spare parts so i don't have to order spares on a per person basis.

Just now i just use my bedroom and it's a complete mess with stuff lying all over the place and mixing a personal computer with a business one wouldn't be the best idea :rotfl:

gb12345

Do you currently have a personal credit card?

If so then you can use that - just make sure you keep track of pure business expenses so that you can use them on your tax return.

In an ideal world, it would be simpler to have a business card, but as you are a sole trader then, apart from the allowable expenses on the tax return, there really is no concept of your assets and liabilities and the business's.

One other thing that just occurred to me when I was typing this - do you have insurance to cover you if anything happens to one of your fixes that causes injury or damage to someone/thing?

neo1607

I do currently have a credit card but it's just an Aqua Reward card (only got it last month with a £250 limit).

Would I be better applying for a different personal credit card with a higher limit and using that?

Also if Im running from home am I better opening a business bank account to handle the money or use a personal bank account.

No Insurance just now, I never really considered that, guess it is something I will have to look into

Jellybean1108

neo1607 wrote: »

3) How to go about actually registering the business and sorting stuff with HMRC [/B](Currently I am already employed as well as self employed with my own shop)

4) Am i better speaking to a Solicitor/Accountant first to help me sort all this out so I don't trip myself up?

If you want to be a LTD company, get in touch with companies house... if not, just register with HMRC. You can find it all on the website, its dead easy. Or give them a call, they're so helpful and nice. I'm into my first 6 months of trading and they're so nice with me because I tend to get confused easily!
I would recommend talking to a solicitor/accountant, they can break it down for you! xx