New business set up

Doglover

Hi, my husband and I have started a small business whilst we both work in paid employment. I'm after some advice generally but in particular on the following:

1) is it necessary to have a business account or it can be a seperately run "normal" current account?

2) what expenses can we offset? We bought a van which we got a loan for, we store the stock at home and deliver it and use electricity and water at home for part of the business. We advertise in the paper and had leaflets and cards done.

3) we are keeping a log of all stock purchase and all sales costs. Is there anything else we should be keeping a record of?

4) anything we need to be particularly careful of?!

Aside from the loan for our vehicle we haven't needed any bank backing and are running the business from home. We realise that any net profit needs to be declared via self assessment and assume that we should declare 50% of it each? Is that correct? Neither of us are in the higher tax bracket with our employed jobs and hope that our accounts will bring us close but not over it.

TIA

Wywth

Doglover wrote: »

Hi, my husband and I have started a small business whilst we both work in paid employment. I'm after some advice generally but in particular on the following:

1) is it necessary to have a business account or it can be a seperately run "normal" current account?

2) what expenses can we offset? We bought a van which we got a loan for, we store the stock at home and deliver it and use electricity and water at home for part of the business. We advertise in the paper and had leaflets and cards done.

3) we are keeping a log of all stock purchase and all sales costs. Is there anything else we should be keeping a record of?

4) anything we need to be particularly careful of?!

Aside from the loan for our vehicle we haven't needed any bank backing and are running the business from home. We realise that any net profit needs to be declared via self assessment and assume that we should declare 50% of it each? Is that correct? Neither of us are in the higher tax bracket with our employed jobs and hope that our accounts will bring us close but not over it.

TIA

1. Yes, most personal bank accounts prohibit their use for business purposes.
2. See the HMRC website or speak to an accountant
3. Speak to an accountant
4. Speak to an accountant

And in relation to the last question, ... wait for it ... yes, you've probably guessed it ... speak to an accountant

[Deleted User]

Doglover wrote: »

Hi, my husband and I have started a small business whilst we both work in paid employment. I'm after some advice generally but in particular on the following:

1) is it necessary to have a business account or it can be a seperately run "normal" current account?

It's very simply to get one and often free for the first couple of years. It also makes things look good too, i.e. when you send a cheque.

2) what expenses can we offset? We bought a van which we got a loan for, we store the stock at home and deliver it and use electricity and water at home for part of the business. We advertise in the paper and had leaflets and cards done.

There are a lot of questions there. Too many to answer here really. However you should have looked at this before buying the van, there are first year allowances for new vehicle purchases in certain emission catagories and as such if you had qualified you could have offset the whole vehicle costs against your first year accounts - if you hadn't taken a lot business wise during the first year it may have meant a very nice tax refund on your PAYE tax paid via your employment.

A quick google search for each of your other questions should do quite well. But as people have said you accountant may be the best option - if you get one make sure they are good! I don't use one just myself.

3) we are keeping a log of all stock purchase and all sales costs. Is there anything else we should be keeping a record of?

Simply record everything at this stage and decide soon how you will file your returns. If your using an accountant ask them how they want things presented. Some may charge more if your accounts are not as required when it comes to year end.

4) anything we need to be particularly careful of?!

Register with HMRC? Insurance against risk and liability?

Aside from the loan for our vehicle we haven't needed any bank backing and are running the business from home. We realise that any net profit needs to be declared via self assessment and assume that we should declare of it each? Is that correct? Neither of us are in the higher tax bracket with our employed jobs and hope that our accounts will bring us close but not over it.

You look to be operating a partnership and as such this needs to be registered, equally you both need to register self employed. That's another topic, but you cannot just split the business in two and put it on two returns.
HTH

TIA

Well I hope that helps more than the above

[Deleted User]

Well I suppose it's true! Unless you of course feel that you know enough to go it alone :-)

Stetson452

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