Can I start a business without big expenses into administering it (HMRC, accountant, etc)?

DraxDomax

I am about to lose my job and bracing for lean times ahead.
This means that expenses like "a few hundred here, a few hundred there" are actually significant to me right now, even if they are not typically very interesting for a live business.

While searching for work, I came up with an idea to provide my work (tech services) as a ready-made solution costing a few thousands, as opposed to hiring someone like me for 10 or 20 times more.

I don't expect to make a sale in the upcoming several months but I feel that I should start with company registration as the last thing that I want is to get interest but tell them "there's no actual company yet".
Also, I want to build a brand and reputation under a business name (not my personal name).

Is there any provision in company law about starting a business with a minimal registration and only having to pay for accountant if an expense or income go through the business?
Potentially, I don't mind starting the business and paying for minor expenses personally, just to keep the business account "clean" and not requiring a tax calculation.

Of course, I will research this further but would be glad to get some directions in to what to look to.

Any ideas, thoughts, discussion welcome
Especially if you are aware of some service that offers business set up advice for fledgling little businesspersons such as myself (meaning: at a low cost, dare I say "free"?)

Jeremy535897

Companies can be set up for a very modest amount, as you will see from a google search. You don't need to employ an accountant at all. Company law requires significant businesses to have an auditor, but that is not necessary for small companies. If there are no transactions, it can be described as dormant, and a CT return will not be necessary until it starts trading (and if you have the stomach for it, you can file CT returns without an accountant). See:
https://www.gov.uk/dormant-company/dormant-for-corporation-tax and the following pages.

tightauldgit

Yes you can set up a company with almost nothing and do your own accounts etc - the necessary companies house returns for a micro-entity (especially one that's not trading) are very simple and can be done yourself if you are even vaguely accounting savvy. 

DE_612183

You can also get a very cheap accountancy package and do it yourself - I've used Freeagent for years - just a monthly fee. But you can do it yourself with a few excel spreadsheets.

The main thing to do is keep your company and personal money separate - separate bank accounts etc.

DraxDomax

what about financial advice for the company?
I would really love to pay to talk to an accountant for an hour - I don't even want precise plans on paper with an accountant's stamp on it - just want to ask things like how withdrawing money works and what I am better off doing, considering my personal needs.
Another example is what kind of things can I put on company expenses?
All the contractors I know drive very sweet cars and I doubt they only take out the Cayenne for commuting to work!

DraxDomax

I mean, I am not asking about this stuff here - more like, asking if a service like that exists (chat with someone who knows small-corporate finances) and how to get one at a competitive price.

(Sorry, I've been coding all day on my business idea and my human language is way out of whack right now)

Billxx

Depending on what you are doing you may also need to take out Professional Indemnity and Public Liability insurance.

Jeremy535897

DraxDomax said:

I mean, I am not asking about this stuff here - more like, asking if a service like that exists (chat with someone who knows small-corporate finances) and how to get one at a competitive price.

(Sorry, I've been coding all day on my business idea and my human language is way out of whack right now)

You could try ICAEW's BAS:
https://www.icaew.com/about-icaew/find-a-chartered-accountant/icaew-business-advice-service

DullGreyGuy

First you say business and then you say company... is it definitely a company you want to setup now?

You can trade as a sole trader without paying a penny to anyone, you can use a trading style too if you want. For any formal documents you would need to identify yourself ( Bob Smith t/a Speedy Fixes) however if you aren't at the stage of signing contracts or billing then that may not be an issue.

Setting up a company is a couple of quid and happens within a few hours. Its only when you have to start doing the annual returns that you really need an accountant or set aside sufficient time to learn how to do it yourself but if you are trading you clearly need to have a modest understanding of company finances to ensure you've got monies to pay the corporation tax etc.

As others have said, PI and PL insurance is going to be another expense you are likely to incur as soon as you start trading.

martindow

DraxDomax said:

what about financial advice for the company?
I would really love to pay to talk to an accountant for an hour - I don't even want precise plans on paper with an accountant's stamp on it - just want to ask things like how withdrawing money works and what I am better off doing, considering my personal needs.
Another example is what kind of things can I put on company expenses?
All the contractors I know drive very sweet cars and I doubt they only take out the Cayenne for commuting to work!

Many accountants will offer a free 30 minutes consultation, hoping that you may become a client in the future.  You could ring round to see if anyone locally offers this.  It's a good idea to do a bit of research first to help you compose a list of pertinent questions.  Half an hour passes very fast, so a list is essential as is avoiding unnecessary chatting.

DullGreyGuy

martindow said:

DraxDomax said:

what about financial advice for the company?
I would really love to pay to talk to an accountant for an hour - I don't even want precise plans on paper with an accountant's stamp on it - just want to ask things like how withdrawing money works and what I am better off doing, considering my personal needs.
Another example is what kind of things can I put on company expenses?
All the contractors I know drive very sweet cars and I doubt they only take out the Cayenne for commuting to work!

Many accountants will offer a free 30 minutes consultation, hoping that you may become a client in the future.  You could ring round to see if anyone locally offers this.  It's a good idea to do a bit of research first to help you compose a list of pertinent questions.  Half an hour passes very fast, so a list is essential as is avoiding unnecessary chatting.

Plus the 30 minutes is at least 15 minutes of their sales pitch... its not really a replacement for proper advice especially if you dont know how company finances work at all (its notably different to the cash accounting most self employeds use)