The Great 'Working for Yourself' Hunt

fc123

Hi We have been Self Emplyed since 1987 (fully liable partnership not Ltd) though I set up the original business whilst at college in 1986.

We are in Retail.

I will lurk on these boards if anyone wants advice on Niche retail, Independent boutiques etc.

LEASES; These can end up losing you your home if things don't go to plan.
The landlord will raise your rent at every review based on neighbouring lettings...so if a Costa, Starbucks or 'phone shop open nearby, you could be in for a shock.

We have traded in Brighton for 10 yrs (also were in London too for 19 yrs), famous for it's independent retailers but losing so many at the moment.
I have lost count of people who have been taken to the cleaners by Landlords in our area, losing their homes as they didn't fully understand how a 'Personal Guarantee' on the lease really worked.


MY biggest TIP is when trying to work out projected T/O...(how long is a piece of string?) on a retail premises;

10 X RENT.

£25K pa rent (and there will be business rates too) will need around £250k pa gross to service all the costs.
There are loads of factors like what margins you are working on etc........but this sum generally ALWAYS adds up.

nicolarichard

Thanks for all the great advice. My boyfriend is self employed but has a regular income/set work as a Driver for Fed EX. I have been doing his accounts (he started last October) as we had a bad encounter with an accountant who was about as much use as a chocolate fireguard! I rang our local tax office and had a very helpful meeting with a tax advisor who gave me all the info i needed to do the accounts. My boyfriend has now been recommended an accountant but i am wondering if it will be worth the £600/£700 per year to pay him (ie would he save us more than we pay him?) or if i should continue doing the accounts myself? One of the main reasons he wants to use the Accountant is to save money and also find out about being VAT registered - can anyone here help me with that please (the VAT reg procedure - what records to keep etc?) Thanks in advance Nic

bezfaery

koru wrote: »

This is good advice,

Thanks koru
As far as I'm aware there is a threshold of a couple of grand before earnings are taken into account but I don't know how this figure is calculated. It is usually £3,500 approx but the calculations are quite complicated so wouldn't like to commit myself to that figure.
Thanks for the extra info though I never deal with claims beyond the initial application and award so don't know the affects of changes of circumstance.

Savvy_Sue

nicolarichard, others might disagree with me but I think once you're into VAT territory then an accountant should be a good investment. Try visiting a few and see if they can answer your questions, I would expect most to offer an initial short consultation free of charge to persuade you that they're the one for you.

fc123

VAT. Doing your own quarterly VAT return is pretty straightforward and is a good way of keeping on top of things. Sifting through all the receipts every 3 months is well worth the time.
The form is easy to fill in too.

Our accountant used to charge £350 per quarter and it takes me a full day to do it myself (so I 'earn' the £350 instead) but I do have to sift through mountains of paper as I do it manually.

I don't do it on the PC, which is even quicker.

End of year accounts, I send to accountant plus all 4 VAT files.

nicolarichard

Thanks - so is it as simple as saving all the receipts (making sure they have a vat breakdown) then adding them up for the form? My boyfriend would be charging the company he works for more VAT than he pays on fuel and van hire so would that make it more complicated? and i believe it is possible to claim backdated, is this right as he started in October last year but i have all the relevant invoices receipts etc? - thanks in advance for any help!

fc123

nicolarichard wrote: »

Thanks - so is it as simple as saving all the receipts (making sure they have a vat breakdown) then adding them up for the form? My boyfriend would be charging the company he works for more VAT than he pays on fuel and van hire so would that make it more complicated? and i believe it is possible to claim backdated, is this right as he started in October last year but i have all the relevant invoices receipts etc? - thanks in advance for any help!

His VAT bills would be quite high as he is charging VAT on his labour.
He can offset the VAT on fuel, materials etc.

If his turnover is less than the threshold, I would reckon he is better not to register....or put the VAT element of every invoice away so it doesn't get spent.

beckah

How do you set up a limited company then and can anyone do it?
Thanks in advance!

fc123

beckah wrote: »

How do you set up a limited company then and can anyone do it?
Thanks in advance!

Find a local accountant...he will deal with everything. Can be done by yourself but if you have to ask how? best to get prof advice.

Savvy_Sue

It would also be worth looking at our sticky: Small Business Start Up Discussion.