Becoming self-employed with no work coming in?

Darfyddi

paddedjohn wrote: »

What exactly are you asking? He has got his badge (is he private hire or hackney carriage?) and wants to practice so before he starts for real the only way he can learn is by driving round the town in his spare time.

Bang on... I am asking, once registered as self employed, does he need anything else initially during the few weeks before he starts taking on customers/work. He will be fully insured by the time he starts taking on customers and in the few weeks until then he is practising in his own vehicle in his own time so bit has nothing to do with the self employment as such.


I am sure there is an easy way to explain this but I just can't figure out how - every forum I come accross is the opposite where people work for centuries then register their business!

notanewuser

Dunroamin wrote: »

Surely if he were a black cab driver he'd've done "The Knowledge" and wouldn't need to drive round the area?

They only do the knowledge in London.

Pricivius

Is the query about claiming tax credits as a self-employed person whilst not actually working? If so, maybe it would be better asked on the benefits board? Just a thought...

Darfyddi

Pricivius wrote: »

Is the query about claiming tax credits as a self-employed person whilst not actually working? If so, maybe it would be better asked on the benefits board? Just a thought...

NO - the query is what I asked.

ohreally

Pricivius wrote: »

Is the query about claiming tax credits as a self-employed person whilst not actually working? If so, maybe it would be better asked on the benefits board? Just a thought...

I understand the Q. to be...

does he need to get any insurances or pay for anything after registering as self employed but before acutally starting getting work come in.

Darfyddi

Thank you OhReally - that is right.

paddedjohn

OP, is your friend setting up on his own or going to work for a local taxi firm? either way he will be self employed but if for a firm then he can most likely get added to their insurance when he starts work.

Is he going private hire or hackney? will he be using his own vehicle or jockying/hiring one?

Darfyddi

Thank you kindly but I know that John - I just wanted to try and find out if anything extra was needed between regestering as self employed and before he started actual work.

paddedjohn

I cant understand why he is going to register as self employed before he actually starts, what is he trying to achieve? When the time comes for him to start work he should register then.

[Deleted User]

All cars must be insured, as must taxis, taxi insurance is different to car insurance and you have one or the other. He needs to be insured to drive so even if he is only driving around for a few weeks to learn he may as well acquire taxi insurance, otherwise he'll be paying a premium for short term "normal" car insurance.

The things you're saying are confusing which is why a lot of the posts here are questioning what you're saying, being self employed means (in its simplest terms) that he is a business and as a consequence he pays his own tax. A self employed person doesn't have to work, you can be registered as self employed and generate no revenue, self employment turns a person into a business and HMRC tax the profit (after deductions for expenses etc.)

The way the costs work out, it will be much better finanially for him to be self employed while he does this than to be unemployed (by four figure amounts).

Are you able to clarify what you mean by this? Does this mean something regarding insurance, tax credits? expenses?