Worth restarting old small business?

Denbyas · 4 November 2018 at 11:05AM

A couple of years ago, I ran a small jewellery business which I did as a sole trader side job as I was also working full time.
I registered with HMRC, paid what I needed to and after a years trial, finished on a profit - and that was without me putting too much effort into it.

I have just given birth, I am now on maternity leave with SMP but because of childcare, we are deciding whether to return to my old job or find a part-time job .

I however would love to bring back the business, I've had a year break and was looking into what I needed to restart it again .
However, I have seen the Autumn budget has now changed things for self employed.

Basically, I am planning on being in a part time job, at present, we earn too much for benefits and the only one we get is Child Tax Credit but I was wondering if it's worthwhile trying my business again.
I didn't make masses of money as a lot of it was pumped back I to stocks as I used my own money to start it and never took out any loans but in the end i had came out on a profit.

I'm afraid I'm not the best understanding business legalities so unsure how this might hamper us.

Thanks

Denbyas · 4 November 2018 at 11:06AM

Sorry it's child benefit at £20 we get not child tax credit &#55357;&#56900;

LushesFaith · 4 November 2018 at 3:08PM

If it turned a profit. Explore the options

CKhalvashi · 4 November 2018 at 5:21PM

If it’s something you’re passionate about, it’s worth looking into.

I went part time about 10 years ago to pursue what’s now a full-time business, making the money up by cabbing for ghe first few years due to 5e flexibility required at the time. It was the best decision I made.

Had I hated what I was looking to do, I definitely wouldn’t have given up a job I enjoyed for it.

Aquamania · 4 November 2018 at 7:43PM

Denbyas wrote: »

A couple of years ago, I ran a small jewellery business which I did as a sole trader side job as I was also working full time.
I registered with HMRC, paid what I needed to and after a years trial, finished on a profit - and that was without me putting too much effort into it.

I have just given birth, I am now on maternity leave with SMP but because of childcare, we are deciding whether to return to my old job or find a part-time job .

I however would love to bring back the business, I've had a year break and was looking into what I needed to restart it again .
However, I have seen the Autumn budget has now changed things for self employed.

Basically, I am planning on being in a part time job, at present, we earn too much for benefits and the only one we get is Child Tax Credit but I was wondering if it's worthwhile trying my business again.
I didn't make masses of money as a lot of it was pumped back I to stocks as I used my own money to start it and never took out any loans but in the end i had came out on a profit.

I'm afraid I'm not the best understanding business legalities so unsure how this might hamper us.

Thanks

I would urge you to seek the advice of an accountant as you appear to fail to understand what profit really is

The simple purchase of stock alone has no effect on profit.

CKhalvashi · 4 November 2018 at 8:57PM

Aquamania wrote: »

I would urge you to seek the advice of an accountant as you appear to fail to understand what profit really is

The simple purchase of stock alone has no effect on profit.

I think OP is referring to the cashflow element, which is how I read it.

Theoretically though, you are correct.

Denbyas · 5 November 2018 at 11:43PM

I ran the company for fun for s year to see if I could do.it and came out with some profit without including any excess stock I had left.
I originally started using £50 of my own funds to buy some silver and rotated the money in and out on materials but at the end I think I finished on a few hundred and that was just selling loosely on easy and with out advertising / stalls etc so i called it a win for a new hobby I learned a few months earlier.

The concern I have is if I leave my job and temporary take on a part time job and pursue this as a side venture again until I feel ready to do this full time, would it put me in a bad position Moneywise - I've just went on Maternity Leave and just my husbands wage alone (without even counting my Ft wage) just puts us over the threshold for benefits so the only one we could claim was child benefit which is about £20 - it's not a lot of money but it's something extra.

I had seen in the autumn budget they had changed something for self employed people where they no longer paid a lower level of tax if their business was not a high earner, which mines never was.

I would love to pursue this again and this time do it properly but I'm concerned if I do, if I get s Pt job AND run this venture that it will dent us financially by either stopping the Cb or requesting additional tax despite not selling much, at a time when we pretty much need extra money for the baby.

I'm sorry if I sound like I'm babbling - I'm terrible understanding finances at times :undecided

Denbyas · 5 November 2018 at 11:46PM

(sorry for a lot of the mis-spells, new phone,)

Savvy_Sue · 6 November 2018 at 1:47PM

It's not your joint income which affects your child benefit, it's if either partner earns about the threshhold for claiming, so unless your partner is near that limit, what you decide to do is unlikely to make any difference.

Worth restarting old small business?

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