Starting a business - do you need to register it straight away?

CBL123

I've struggled to find a job over the last few years and have been considering setting up as a 'handyman' offering a variety of services.

I imagine it'll be very hard to get into but thought it's worth a shot; I thought I could post some flyers and see if anything came up.

But would that mean needing to register as a business? Could I post my flyers, see how it went for a couple of months and keep records - then look to set up a bank account etc if it worked out?

Thanks.

PlutoinCapricorn

It is best to wait until you have a firm order for your services: HMRC do not want people to register in advance as many ideas never get off the ground.

earthstorm

CBL123 wrote: »

I've struggled to find a job over the last few years and have been considering setting up as a 'handyman' offering a variety of services.

I imagine it'll be very hard to get into but thought it's worth a shot; I thought I could post some flyers and see if anything came up.

But would that mean needing to register as a business? Could I post my flyers, see how it went for a couple of months and keep records - then look to set up a bank account etc if it worked out?

Thanks.

Best thing is to speak to an accountant. ( most will give the 1st session free)

CBL123

Thanks for the quick responses.

The likelihood is that it would take a long time for me to 'get off the ground.' And I doubt I'd be making much from it.

But I think it's worth a go. I'm just unsure as their website suggests you need to inform them.

Suarez

PlutoinCapricorn wrote: »

It is best to wait until you have a firm order for your services: HMRC do not want people to register in advance as many ideas never get off the ground.

Did HMRC tell you this?

You're are supposed to register as soon as you start advertising your services.

You can apply for small earning exception certificate if you're profit is likely to be under £5,725 over the year so you won't have to pay class 2 (Although you may want to if you have no other job for state pension purposes).

Percy1983

Dare I say logic says when to do this, the rule is you should inform them as soon as you start trading.

The arguement is have you started trading in printing leaflets, I would say probably not, the main difference is if you say you are trading from the start you can put the leaflets through as a business expense, if you don't then you can't.

On the flip side if you declare and then send leaflets and get nothing you have a business witha single cost and thats the end out it, claim a small amount of tax bcak and end up doing self assessments for a good few years to come aswell as having to apply a for small earning exception certificate.

If you don't declare anything until you take a booking then if nothing happens you can write off the money spent as an experience and carry with life as normal. HMRC won't be bothered as you never made any profit so no tax is due and your not trying to claim a small amount back on the cost of leaflet distribution.

Just use a bit of common sense really.

valacky

Hi.
First thing to do: Inform the tax office. This covers you wether you get any trade or not. You don't have to register as a business as such, you can just trade under your own name - I did for 10 years.
Don't worry about HMRC as you won't need to register for VAT unless you start buying expensive merchandise for fitting or selling on.

Depending on your personal circumstances you may be able to claim some benefits. If you are already in receipt of JSA/council tax benefit/housing benefit then the JobCentre and council will advise you on this. You may also be eligible for working tax credits.
If you are claiming JSA and Housing benefit, and want to keep claiming housing benefit, then when you sign off you will be asked what wage you anticipate earning. Do NOT overestimate this, say a really small amount. They may tell you that you can't give a figure lower than the National Minimum Wage, but as a self-employed person this does not apply.

I worked succesfully for 10 years as a self-employed painter/decorator and branched out into handyman & maintenance of grounds and buildings. It does not happen overnight, and for the first year I had to do a part time job in the off licence as well.

Flyers are good but you will probably only get a 2% response on average. Try making your own as the other 98% will go in the bin! Word of mouth is much better advertising - tell all your friends and family, tell everybody in the pub, put notices in the supermarket, etc. Get the word out and don't be shy to promote yourself. When you get your first jobs make sure your customer is satisfied and happy, and if you are good and reliable the word will soon get around.

Hope this helps you.

CBL123

Thanks for the further responses, all helpful.

Is trading under your own name the same as a 'sole trader'?

Percy1983

CBL123 wrote: »

Thanks for the further responses, all helpful.

Is trading under your own name the same as a 'sole trader'?

Exactly the same, you can be:

Bob Smith trading as Bob Smith

or

Bob Smith trading as Bob's Business

Either is a sole trader.

scragend

You have three months from the date you start trading to register with HMRC as self employed (and start paying NICs/apply for exception as appropriate).

There is a £100 fine if you do not register within three months.

NiceGuyEddie_2

scragend wrote: »

You have three months from the date you start trading to register with HMRC as self employed (and start paying NICs/apply for exception as appropriate).

There is a £100 fine if you do not register within three months.

There should be a £100 fine for duff info posted on MSE. There is no longer a 3 month window and there hasn't been one for a number of years. You need to register with HMRC when you start trading.