New sole trader business questions

phill99

bigstevex wrote: »

If you're using rooms in your house purely for storing stock, then you may

1) contravene local planning laws. (Curious on which planning laws I may contravene, I still have access to the windows/doors etc, I merely utilise them to store things preventing them being used as an actual bedroom though) )

Your house has planning permission to be.....a house. You are using it partially as a........Warehouse. It doesn't have planning permission for this. Nor is it likely to grt it.

Additionally, you have probably just invalidadted your home insurance. This will specifically bar the storing of commercial stock in your home. Should there be a claim, your claim will be denied and your insurance cancelled, after which you will struggle to get insurance.

You are being rxtremely niave in all this, on a number of levels.

bigstevex

phill99 wrote: »

Your house has planning permission to be.....a house. You are using it partially as a........Warehouse. It doesn't have planning permission for this. Nor is it likely to grt it.

Additionally, you have probably just invalidadted your home insurance. This will specifically bar the storing of commercial stock in your home. Should there be a claim, your claim will be denied and your insurance cancelled, after which you will struggle to get insurance.

You are being rxtremely niave in all this, on a number of levels.

This is exactly why I'm here and asking for help! In what was is asking for advice being niave!!!

After some searching....
It's fine to have the rooms used most of the time but not all the time, I cannot say they are 100% business use, needs to have some personal use or captial gains tax applies on sale of the property! Hence, I'll continue to use them to also store personal items/a bed/wardrobes, this maintains them as personal/business use! The office can be 50/50 personal/business as it's the home computer in there.

Insurance, I did ask the question before about who to use, I AM NOT contravening my current home insurance because I'm not yet registered as a business or running a business!!! The stock is still basically a personal collection which is declared and covered with my home insurance which I pay for 100k of cover!

phill99

bigstevex wrote: »

After some searching....
It's fine to have the rooms used most of the time but not all the time, I cannot say they are 100% business use, needs to have some personal use or captial gains tax applies on sale of the property! Hence, I'll continue to use them to also store personal items/a bed/wardrobes, this maintains them as personal/business use! The office can be 50/50 personal/business as it's the home computer in there.

I think the Local Planning Enforcement Officer will take a significantly different view of this.

Insurance, I did ask the question before about who to use, I AM NOT contravening my current home insurance because I'm not yet registered as a business or running a business!!! The stock is still basically a personal collection which is declared and covered with my home insurance which I pay for 100k of cover!

But the minute it becomes business stock, its a completely different ball game.

You may want to do some further research.

Mistral001

bigstevex wrote: »

They are appreciating assets, hence my business plan Although does that mean I can bring them in at their current market rates?

I.e I paid £500 for an item in 2013, it's now worth £1000, do I bring it into the company at it's cost price or at it's current valuation, obviously with regards to stating profit/loss the higher the price I bring it in at the better!?

It is very unusual that they appreciate, so HMRC, I would think, would need a lot of convincing.


PS. Are these personal items that you are selling. I think there are different rules for making a profit from selling personal items. Again, your situation is probably complex enough investing in a trip to an accountant.

bigstevex

phill99 wrote: »

You may want to do some further research.

If you're such an exert on this why aren't you actually helping by correcting me where I'm wrong and pointing to the laws/legistation that states otherwise instead of saying 'no you're wrong'? Everything I've read so far including replies/statement from accountants says I'm correct by the statement you've just defined as wrong!

^ In addition, the statements are ones readily viewable round the internet, not specific accountants I've spoke to

I'm very aware once it becomes business stock it's a different ball game, but as of yet it's still a fully insured personal collection of certain items!

bigstevex

Mistral001 wrote: »

It is very unusual that they appreciate, so HMRC, I would think, would need a lot of convincing.


PS. Are these personal items that you are selling. I think there are different rules for making a profit from selling personal items. Again, your situation is probably complex enough investing in a trip to an accountant.

Basically the items I buy are very rare and at the time I buy them they begin appreciating almost straight away hence my personal investment in them. Of course now I wish to trade them/sell them for profit I now need to register for tax :cool:

It's a fine line between personal and buying to sell for profit is what I've read, personal items aren't taxable when sold but as I bought these with the intention of eventually selling them in years to come I don't think I can call them personal tbh especially due to the value and I'd rather just pay the tax to prevent issues down the line tbh!

phill99

bigstevex wrote: »

If you're such an exert on this why aren't you actually helping by correcting me where I'm wrong and pointing to the laws/legistation that states otherwise instead of saying 'no you're wrong'? Everything I've read so far including replies/statement from accountants says I'm correct by the statement you've just defined as wrong!

Because whatever anyone suggests you seem to know better. Evidently you have sold your set of encyclopaedia as you know everything anyway.

bigstevex

Either add something constructive or keep your comments to yourself phill99. Whether you wish to help me or not, these comments remain on here for others to see and use as advice, and to be honest you're possibly the most unhelpful person I've encoutered on here! Telling me I'm wrong and adding nothing to the topic is pointless! You could learn a lot off the other 2 members who've replied with quite helpful pointers/answers!

lovinituk

Mistral001 wrote: »

Again, your situation is probably complex enough investing in a trip to an accountant.

This is the best advice on the thread so far.

OP - Stop messing about on an anonymous forum and go and see a competent accountant. They will more than likely save you more in tax than they charge you in fees. And it will all be done correctly so if/when HMRC decide to pull your accounts apart, there won't be any nasty surprises.

bigstevex

lovinituk wrote: »

This is the best advice on the thread so far.

OP - Stop messing about on an anonymous forum and go and see a competent accountant. They will more than likely save you more in tax than they charge you in fees. And it will all be done correctly so if/when HMRC decide to pull your accounts apart, there won't be any nasty surprises.

I'm starting to definitely think this! It's so much cheaper being a sole trader than ltd with an accountant too so tbh it might be best!

One thing I have just been advised to do on another forum is to basically use the company to buy the stock off me but I may have to go down the ltd company route to do this!

Accountant here I come lol!