Starting a business.

Trimmtrab

My partner and I both work full time and earn in excess of 55k between us.

We have started a venture which each month for simple maths we outlay £180-200 and our income is lets say £1000.

We don't draw a wage we basically pay for the the following months materials from the previous months takings. The long and short is we are very profitable and takings are starting to improve each month.

What are our next steps as we need to be legal and above board.

Im totally new and green to this so need all the help we can get to be legal and maybe expand.

Thanks

Mistral001

You should inform HMRC about your self-employment. If you have started before 6 April 2019 then you will have to fill in HMRC a self-employed self assessment form before the end of this month. If you started after 6 April 2019, then the form is not due until end of Jan 2021.

An accountant is probably the best way to go though. They should be able to guide you through what you require.

spadoosh

If the numbers are broadly accurate of £12k a year an accountant seems wholly unnecessary. If its substantially more or your particularly not interested in learning the financial management side of business then youd probably be wanting an accountant.

For the most part everything you need to know can be found here.

https://www.gov.uk/set-up-business

or elsewhere on the HMRC website.

Id also look out for any business start up seminars in your local area. Your local council might do one. Your local college/uni might offer something too.

Mistral001

spadoosh wrote: »

If the numbers are broadly accurate of £12k a year an accountant seems wholly unnecessary. If its substantially more or your particularly not interested in learning the financial management side of business then youd probably be wanting an accountant.

For the most part everything you need to know can be found here.

https://www.gov.uk/set-up-business

or elsewhere on the HMRC website.

Id also look out for any business start up seminars in your local area. Your local council might do one. Your local college/uni might offer something too.

I agree with everything above, but the OP did say that their takings were improving every month.

I have always taken the view when starting a business, start as you intend to go on. If you see your business growing to a point where you will need an accountant, if for no other reason that your time is too valuable to take care of everything, then get them on board as soon as you can.

tacpot12

An accountant will help you decide whether you want to run the business as:
- a limited company
- a partnership
- two sole traders running two separate but complementary businesses
- one sole trader who employs the other

Trimmtrab

Any idea how much tax or Vat we would pay on 12k turnover minus 2400 outlay

Marcon

Trimmtrab wrote: »

Any idea how much tax or Vat we would pay on 12k turnover minus 2400 outlay

What's the structure of the business - I presume 'wholly informal' and there is no partnership agreement, limited company or anything else in place? If so, you'd each pay income tax at your marginal rate on your share of the profits.

Are you actually registered for VAT? If not, you don't charge/pay any.

Kayalana99

Def would see an accountant esp if you are clueless. They can advise on all sorts and 9/10 will pay for themselves because they will save you tax.

Trimmtrab

I didn't realise we didn't pay Vat below 85k so that's cleared up, do we pay anything else like business rates as we're operating from home.

00ec25

Trimmtrab wrote: »

I didn't realise we didn't pay Vat below 85k so that's cleared up, do we pay anything else like business rates as we're operating from home.

please read the links you have been given


you are so clueless you don't even know what questions to ask, and those that are you asking are simple factual things you should be teaching (googling) yourself, not waiting to be spoon fed the answer

lindens

Your local council offers free courses for the newly self employed on a vast number of topics. Have a look at yours.