Registering with HMRC?

purdyoaten

Having read that you have been 'doing this since March,' I am presuming that you generated at least some turnover prior to 5th April 2014 i.e. in 2013/14 income tax year. If that is the case you are required to register for self-assessment before 5th October 2014.

QueenoftheWorld

purdyoaten wrote: »

Having read that you have been 'doing this since March,' I am presuming that you generated at least some turnover prior to 5th April 2014 i.e. in 2013/14 income tax year. If that is the case you are required to register for self-assessment before 5th October 2014.

In March, profits minus expenses (stock, fees, postage and supplies) would be apx £300.

QueenoftheWorld

QueenoftheWorld wrote: »

In March, profits minus expenses (stock, fees, postage and supplies) would be apx £300.

Actually that might not be as high as I'd have to still factor in stock purchased but not sold. I only used the number gathered by stock expenses for the items sold (so subtotaling on those sold in March) but I'd need to calculate how much stock I purchased prior to April but didn't sell during that period. Is that right?

QueenoftheWorld

Yes, in a quick look at all stock purchased prior to April 5th, I would have no profit against expenses. Also, not sure if this makes a difference but I do pay VAT on my stock.

purdyoaten

QueenoftheWorld wrote: »

Yes, in a quick look at all stock purchased prior to April 5th, I would have no profit against expenses. Also, not sure if this makes a difference but I do pay VAT on my stock.

You may have had no profit but you were trading. You can't simply decide that the business has not commenced because it has not yet made a profit!

I do fully appreciate your comments regarding advice as opposed to criticism but your lack of knowledge and your determination to 'go it alone' could cost you dearly. If you do not know that your drawings is not an allowable deduction aginst profits, how can you be sure that your self-assessment return is correct in every respect?

I do applaud you for going it alone in your efforts to make a success of your business but why risk all of that because you tried to save money on accountancy fees?

QueenoftheWorld

purdyoaten wrote: »

You may have had no profit but you were trading. You can't simply decide that the business has not commenced because it has not yet made a profit!

I do fully appreciate your comments regarding advice as opposed to criticism but your lack of knowledge and your determination to 'go it alone' could cost you dearly. If you do not know that your drawings is not an allowable deduction aginst profits, how can you be sure that your self-assessment return is correct in every respect?

I didn't say, nor did I decide, that I hadn't commenced a business due to no profit then. Someone asked if I had turnover prior to April 5th and I was simply clarifying my information I stated was all. As for when the business commenced, if I have commented, it was only on the basis that you don't know that you have a business sometimes while you try stuff out and don't realise your obligations because you're testing.

And sorry if I didn't know my drawings weren't an allowable expense. I am sure many who start out, not knowing if a business is viable, have a lot of elementary things they don't know.

I asked for some clarification on registering with HMRC and I feel a little like I've been read the riot act for what I don't know, how I've not already (in my 3 months I've done this) hired an accountant (who does that after 3 months with less than 2000 in total sales???) and not sought professional courses in all things business. If you've all done it exactly in that model, slap yourself on the back but please don't slap me in the face. I am not 'going it alone' but we all have to make decisions in light of the situation you are in at that moment. This topic has gone off course onto my bad business practices instead of helping me understand HMRC rules when registering. Maybe that was my mistake in asking too many questions which got everyone's hair raised on how little I know.:eek::eek:

So sincerely thank you all for your advice and points. I have a neighbour who is an accountant and I'll seek some humble advice there and make my exit.

purdyoaten

QueenoftheWorld wrote: »

I didn't say, nor did I decide, that I hadn't commenced a business due to no profit then. Someone asked if I had turnover prior to April 5th and I was simply clarifying my information I stated was all. As for when the business commenced, if I have commented, it was only on the basis that you don't know that you have a business sometimes while you try stuff out and don't realise your obligations because you're testing.

And sorry if I didn't know my drawings weren't an allowable expense. I am sure many who start out, not knowing if a business is viable, have a lot of elementary things they don't know.

I asked for some clarification on registering with HMRC and I feel a little like I've been read the riot act for what I don't know, how I've not already (in my 3 months I've done this) hired an accountant (who does that after 3 months with less than 2000 in total sales???) and not sought professional courses in all things business. If you've all done it exactly in that model, slap yourself on the back but please don't slap me in the face. I am not 'going it alone' but we all have to make decisions in light of the situation you are in at that moment. This topic has gone off course onto my bad business practices instead of helping me understand HMRC rules when registering. Maybe that was my mistake in asking too many questions which got everyone's hair raised on how little I know.:eek::eek:

So sincerely thank you all for your advice and points. I have a neighbour who is an accountant and I'll seek some humble advice there and make my exit.

Fair enough - I wish you well. I would reiterate that, based on what you have said, you do need to register before 5th October 2014.