Becoming Self-Employed

Cariad9

I've spent the last few weeks emerged in the HMRC website, and would appreciate a few thoughts from anyone else who is Self-Employed. I'm setting up a computer service and repair business and would just like to check I've got the basics right in my head so I can start trading ASAP and sort the nitty stuff out in due course:


- Projected income (which as far as I can make out is the same as turnover?) is around £600 a month to start with. I take it this means I do not need to register for VAT?


- I've registered with HMRC as self employed sole-trader, as this seems the most straightforward route for a small run-from-home business?


- I'm signing up to a full book-keeping course, however at the moment as long as I keep all receipts, invoices and have a system of recording money in / money out, this will be ok for tax purposes?


- As a sole trader I don't need a business account, and can simply open a second personal account?


- As my partner works and I do not, I've registered solely in my name. However he may help out free of charge once in a while, would this cause problems?


This will be a small business, no employees, business premises etc. will simply be buying a few parts I need and offering a service so am hoping I'll be able to do the paperwork myself, but getting a bit overwhelmed at the moment.


I have permission to use my home for business.


Any advice gratefully received. Thanks.

phill99

You're right on all counts except the business bank account. Most banks have conditions attached to personal accounts and one is not to use it for business purposes.

You may wish to open a business account. It looks more professional and it makes it simpler for accountimg purposes if you have all business expenses and receipys going through a separate business account.

RedFraggle

Income and turnover aren't the same thing unless you mean total income rather than your income. Turnover is the money paid to the business for services i.e. the sum of all invoices issued.