Small business set up

Peter1988

Hello,

I currently have a full time job which pays the bills but I really want toset up a computer business on the side, which I can do in the evenings and onthe weekend. I was wondering if anyone has any experience or knowledge of thisand any considerations which I should take into account?

i.e - do I need to register it as a company even if I trial it and find itsnot really working?


Do I need to use solicitors to draw up company terms and conditions etc?

Even though I have my primary mon-fri job, do I have to declare myself asself employed and fill in all the forms etc?

I guess what Im really asking is, legally do I have to behave as if this will definitely work rather than a trial initially?

I dont want to invest 00's or 000's of pounds it if really doesnt work.

Many thanks

gb12345

You only need to register as a company if you are actually setting up a limited company - which you won't need to do initially. You will be a sole trader, either trading in your own name or using a T/A name.

You will need to register with HMRC as self-employed as soon as you start earning money from the business and will need to do a self-assessment from for this tax year even if you give up after a couple months.

paddyrg

'a computer business' is a bit broad - narrow down what you're planning to provide first, then you'll know what kind of cash you're talking. For instance, do you need to buy stock? Travel? Etc.

The minimum you must do will depend on how you work, but registering with HMRC as a sole trader and adding your takings into your tax return each year should be your baseline for a 'toe in the water'

Peter1988

Thanks for the replies. Well it will be a computer repair/advice business atleast to begin with - just the usual home networking, virus removal, advice,upgrading, training etc.

Will I have to tell me full time employer about this in order to completethe self assessment?

There will be an initial investment for another mobile phone, some moretools, stationery etc, approximately £300 but at this moment certainly notravel outside say a 15 mile radius of my home.

As I have absolutely no experience of setting up a business, another aspectis, if in the unlikely something goes wrong - I want to cover myself againstbeing taken to court or owing money if something doesn’t go quite right. Woulda solicitor draw these terms and conditions or waiver up for me for a smallfee?

For example if a customer could potentially lose data from their hard drive- ideally they'd sign a waiver before I even started any work on it at all,advising them of the risk.

This venture would initially be for me to earn some extra money and gain some expereience working for myself, as I long to be my own boss.

Thanks again

gb12345

Peter1988 wrote: »

Thanks for the replies. Well it will be a computer repair/advice business atleast to begin with - just the usual home networking, virus removal, advice,upgrading, training etc.

Will I have to tell me full time employer about this in order to completethe self assessment?

There will be an initial investment for another mobile phone, some moretools, stationery etc, approximately £300 but at this moment certainly notravel outside say a 15 mile radius of my home.

As I have absolutely no experience of setting up a business, another aspectis, if in the unlikely something goes wrong - I want to cover myself againstbeing taken to court or owing money if something doesn’t go quite right. Woulda solicitor draw these terms and conditions or waiver up for me for a smallfee?

For example if a customer could potentially lose data from their hard drive- ideally they'd sign a waiver before I even started any work on it at all,advising them of the risk.

This venture would initially be for me to earn some extra money and gain some expereience working for myself, as I long to be my own boss.

Thanks again

Telling your employer depends on what your contract with them will say - they probably won't find out when you initially register, but if the self-assessment changes your tax code for some reason then they might do.

As to owing money/going to court - if you f*ck up as a sole trader it is down to you - only a limited company will protect you personally (an even then not from being sued for negligence).

Why should someone sign away their rights if the "professional" they have hired to fix their problem makes it worse? Professional Indemnity insurance would probably be a good idea.

PlutoinCapricorn

This type of business has been mentioned on here many times: you could do some searching and you will see some realistic responses and examples of where things went wrong. People are normally encouraged to be careful and do some research first.

For example, YouTube shows how to do many things; there are often free courses available in libraries etc.; many people have friends who will help out for nothing... this all sounds negative but is just realistic.

Peter1988

PlutoinCapricorn wrote: »

This type of business has been mentioned on here many times: you could do some searching and you will see some realistic responses and examples of where things went wrong. People are normally encouraged to be careful and do some research first.

For example, YouTube shows how to do many things; there are often free courses available in libraries etc.; many people have friends who will help out for nothing... this all sounds negative but is just realistic.

Thanks I will do that. This is something which I am aware could be a total flop, but is it worth a punt?

If Im going to have to invest alot of money for not alot of return then absolutely im not interested, but if I could potentially get even an extra £200 a month to spend on the kids then it must be worth it and it must be worth a go.

Realistically if it isnt going to be worth it then Id rather find that out before beginning and focus my efforts elsewhere.

I'm torn between making a real go of it, or admitting that perhaps the amount of investment vs income is not good at all. Perhaps I should do a poll.

PlutoinCapricorn

This is the sort of post I was thinking of:

https://forums.moneysavingexpert.com/discussion/comment/60704593#Comment_60704593

gb12345

Peter1988 wrote: »

If Im going to have to invest alot of money for not alot of return then absolutely im not interested, but if I could potentially get even an extra £200 a month to spend on the kids then it must be worth it and it must be worth a go.

You may well find that professional indemnity and public liability insurance could eat a lot of that £200pm up. You would need both - PI in case you trash someone's system and cost them money and PL in case a repair you make injures someone.

Savvy_Sue

PlutoinCapricorn wrote: »

This is the sort of post I was thinking of:

https://forums.moneysavingexpert.com/discussion/comment/60704593#Comment_60704593

There's this one as well, perhaps even more negative ...

Peter1988

Thanks for posting the links - If I had another skill which I could set up as a home business to earn some extra income I would.

Perhaps I need to forget about this crazy idea for now.

Shame, but maybe sensible.