Going self-employed

warner82

Hi all
Having been made redundant last Summer in my job of nearly 20 years; I have now decided to work for myself, initially doing odd jobs, landscape gardening and light construction.
My first potential "contract" is set to commence on Monday but as far as legalities and paperwork I'm absolutely clueless.
I believe I need to set up a tradesman's insurance policy pretty sharpish, and get a Unique Tax Reference via govt. website (applied for earlier today!).
Am I then good to go? 
Any advise would be hugely appreciated!

Marcon

Start here: https://www.gov.uk/browse/business

You might want to think about whether you really want to be self employed or set up as a limited company - the latter gives you far more protection than any insurance company ever would in the event of a claim! Link gives you a lot more info, but a meeting with an accountant might be time well spent to ensure you get the paperwork off on the right footing.

Hope all goes well with your new venture.

MalMonroe

There's a lot of information on this government website : https://www.gov.uk/topic/business-tax/self-employed

You are definitely going to have to know about 'legalities' and 'paperwork' because there are certain records you MUST keep by law.

You really could do with an admin assistant or a VA (Virtual Assistant), which is the online business I'm preparing to launch in April . . . but do you have a spouse or partner or kind friend who could lend a hand (free of charge, I almost forgot to put!) in these initial stages?

General_Grant

Marcon said:

Start here: https://www.gov.uk/browse/business

You might want to think about whether you really want to be self employed or set up as a limited company - the latter gives you far more protection than any insurance company ever would in the event of a claim! Link gives you a lot more info, but a meeting with an accountant might be time well spent to ensure you get the paperwork off on the right footing.

Hope all goes well with your new venture.

But it's not a "get out of jail free card".

warner82

Marcon said:

Start here: https://www.gov.uk/browse/business

You might want to think about whether you really want to be self employed or set up as a limited company - the latter gives you far more protection than any insurance company ever would in the event of a claim! Link gives you a lot more info, but a meeting with an accountant might be time well spent to ensure you get the paperwork off on the right footing.

Thanks for prompt feedback, very useful links.
Normally the guides and articles on MSE are my go-to start point for pretty much everything in life but haven't found much on this topic, hence the cry for help.
I am actually going into this with a friend, we intended to register as self-employed initially as we thought this would be quick to do; we have discussed becoming a partnership in the future.
Are there comparison sites for liability insurance and are you saying that I don't need this if I/we register as a limited company from the outset?
Please excuse my ignorance!

General_Grant

warner82 said:

Marcon said:

Start here: https://www.gov.uk/browse/business

You might want to think about whether you really want to be self employed or set up as a limited company - the latter gives you far more protection than any insurance company ever would in the event of a claim! Link gives you a lot more info, but a meeting with an accountant might be time well spent to ensure you get the paperwork off on the right footing.

Thanks for prompt feedback, very useful links.
Normally the guides and articles on MSE are my go-to start point for pretty much everything in life but haven't found much on this topic, hence the cry for help.
I am actually going into this with a friend, we intended to register as self-employed initially as we thought this would be quick to do; we have discussed becoming a partnership in the future.
Are there comparison sites for liability insurance and are you saying that I don't need this if I/we register as a limited company from the outset?
Please excuse my ignorance!

I don't know what Marcon meant but operating through a limited company doesn't mean you don't need insurance,  As I wrote above, limited liability isn't a get out of jail for free card.

As people with significant control (even as non-directors of the company) you still have personal responsibility and companies need to hold insurance - employee and public liability.  Professional liability insurance may also be a requirement.

warner82

Thanks GG i will get insurance sorted tomorrow - would anybody recommend any particular provider or comparison site to begin with?
Marcon - would you care to elaborate on the point about ltd vs sole trader please?
Much appreciated folks!

General_Grant

One thing which Marcon may have had in mind was that, for normal commercial debts, as a self-employed person all your assets (including your home) could be at risk as you and your business are one whereas the limited company is a legal entity in its own right.

warner82

6 months later...
After a few hard knocks and tough lessons I'm kind of surviving, still feel like I'm drowning a bit but plenty of work lined up and trying to make time for the admin (can't afford an accountant, how hard can it be to do my own books?).

New query which maybe justifies a new thread but I'll drop it in here first...
My dad has lent me his credit card and I'm using it to pay for fuel and consumables, keeping a tab and repaying when I can. Much of what I'm spending should be tax deductable, but obviously the receipts are linked to someone else's card. Will this prevent me from claiming back on these expenses?

Thanks in advance for any advice 

Sandtree

Presumably you are still a sole trader and didn't incorporate?

Assuming you repay your father then its still a business expense... the bank has technically paid for it just as they would have had it been an account in your name.

warner82

Still a sole trader at this point, considering making my wife a partner to help with admin etc.

As always, I apologise for my ignorance but do you not have to produce evidence of expenses and if so would receipts from someone else's credit card be valid?