Starting out, is it worth it yet?

garvok

Hi all,
I am after a bit of advice.
I've recently taking a voulntry redudency with my current employer. The hope is to re train but my re training will last for the next 12-18 months which my package will just about stretch to.
Along with my current job, i have taught music privatley and worked as a freelance musician, currently i teach between 2-5 students weekly and play around 2-5 shows/gigs a month. I have always been in demand and more often than not turn down shows and students that i cannot accomidate to. So with thinking whilst I am studying I can take on more work, just wondering if its worth setting up as a company? Is there 'x amount' of much trade i need to be doing for this? Things like tax returns etc, talking to people who are self employed they said i'd be able to offset the tax bill against, fuel, equipment, teaching materials etc, is this right?

Thanks
G

Mistral001

Whether you set up a company or not you still have to pay taxes on any profits you make from your present activities

PlutoinCapricorn

It probably is not worth creating a limited company until you become a higher rate tax payer.

Operating as a sole trader to see how it goes seems the best and simplest option. Record keeping and submitting a tax return are easier this way.

RobW1

I don't think you should set up a company yet. It depends how much business you generate. Seek advice from a government body or something, is what I would suggest?

RobW1

Also if you are starting up your business and working from home, you may need to pay business rates on the room that you use per square foot. Just something to consider. But if your income is less than a certain amount, you won't have to do this. Your council should tell you.

lincroft1710

RobW1 wrote: »

Also if you are starting up your business and working from home, you may need to pay business rates on the room that you use per square foot. Just something to consider. But if your income is less than a certain amount, you won't have to do this. Your council should tell you.

Income has nothing to do with whether business rates are applicable.

If a room or building is used exclusively for business use, then that room/building will probably be subject to business (or non domestic) rates. However most people get round this by using the room/building for non business use "at the end of the working day" so do not incur business rates.

garvok

thanks guys, got an apointment with an accountant ive used in the past. will take everything on board