Starting up a business
Discussion
So having started something last year as a bit of a hobby and a way of buying new tools/toys and it has suddenly grown.
I have a contract for a regular monthly job worth £3,360 with an order for additional work worth £575. The agent also wants me to price for other work and I'm getting enquiries from elsewhere. I'm expecting it to turnover anything from £10k to £20k, depending on what jobs I take, we are not talking about the next multi million business.
It's not a position I expected to be in but I'm certainly not complaining, I've now got a self employed lad helping me and a couple of others lined up should I win any future work.
I'm weighing up how to progress with things. I would ideally like to trade under a brand/company name, I already have a name and logo but not sure how best to go about it. Stay a sole trader or set up a Ltd company etc.
What is the best way of dealing with labour? the current guy gives me an invoice and I transfer him the amount. I don't yet have business accounts etc. but I do keep a close eye and record all of my in/out goings. I also have the correct public liability insurance, but wondering if there is anything else I should consider. H&S RAMS etc. all done by me.
I also need to get my head around tax, I currently have a day job and this is a side line. I know I need to register with HMRC, but wondering if there is anything else I need to do, My employer knows about my side line job.
Any advice pointers are welcome, cheers
I have a contract for a regular monthly job worth £3,360 with an order for additional work worth £575. The agent also wants me to price for other work and I'm getting enquiries from elsewhere. I'm expecting it to turnover anything from £10k to £20k, depending on what jobs I take, we are not talking about the next multi million business.
It's not a position I expected to be in but I'm certainly not complaining, I've now got a self employed lad helping me and a couple of others lined up should I win any future work.
I'm weighing up how to progress with things. I would ideally like to trade under a brand/company name, I already have a name and logo but not sure how best to go about it. Stay a sole trader or set up a Ltd company etc.
What is the best way of dealing with labour? the current guy gives me an invoice and I transfer him the amount. I don't yet have business accounts etc. but I do keep a close eye and record all of my in/out goings. I also have the correct public liability insurance, but wondering if there is anything else I should consider. H&S RAMS etc. all done by me.
I also need to get my head around tax, I currently have a day job and this is a side line. I know I need to register with HMRC, but wondering if there is anything else I need to do, My employer knows about my side line job.
Any advice pointers are welcome, cheers
My wife runs a small farming business.
The best advice she had at the start was to engage an accountant to advise on what information to collect in the books and to get them to do the annual tax return.
I thought it might it be expensive but was really surprised how little it costs and how good their advice is.
She does all her own bookkeeping on a simple Excel spreadsheet but it collects the information the accountant said she should collect and she just sends them the spreadsheet and they use it to do the tax return.
And of course they are up to speed on all of the tax information and the various loopholes that you can use to be tax efficient.
Finding a recommendation for an accountant is quite easy as most small towns have accountancy firms that are used to looking after local businesses so just ask somebody with a similar sized business who they use and if they are happy with them so should you be.
The best advice she had at the start was to engage an accountant to advise on what information to collect in the books and to get them to do the annual tax return.
I thought it might it be expensive but was really surprised how little it costs and how good their advice is.
She does all her own bookkeeping on a simple Excel spreadsheet but it collects the information the accountant said she should collect and she just sends them the spreadsheet and they use it to do the tax return.
And of course they are up to speed on all of the tax information and the various loopholes that you can use to be tax efficient.
Finding a recommendation for an accountant is quite easy as most small towns have accountancy firms that are used to looking after local businesses so just ask somebody with a similar sized business who they use and if they are happy with them so should you be.
A993LAD said:
My wife runs a small farming business.
The best advice she had at the start was to engage an accountant to advise on what information to collect in the books and to get them to do the annual tax return.
I thought it might it be expensive but was really surprised how little it costs and how good their advice is.
She does all her own bookkeeping on a simple Excel spreadsheet but it collects the information the accountant said she should collect and she just sends them the spreadsheet and they use it to do the tax return.
And of course they are up to speed on all of the tax information and the various loopholes that you can use to be tax efficient.
Finding a recommendation for an accountant is quite easy as most small towns have accountancy firms that are used to looking after local businesses so just ask somebody with a similar sized business who they use and if they are happy with them so should you be.
Cheers for that, I already have an accountant in mind who specialises in small business The best advice she had at the start was to engage an accountant to advise on what information to collect in the books and to get them to do the annual tax return.
I thought it might it be expensive but was really surprised how little it costs and how good their advice is.
She does all her own bookkeeping on a simple Excel spreadsheet but it collects the information the accountant said she should collect and she just sends them the spreadsheet and they use it to do the tax return.
And of course they are up to speed on all of the tax information and the various loopholes that you can use to be tax efficient.
Finding a recommendation for an accountant is quite easy as most small towns have accountancy firms that are used to looking after local businesses so just ask somebody with a similar sized business who they use and if they are happy with them so should you be.
got my book keeping up to date but it could probably do with a tidy up up and to check I am including all the things I need to. I do some volunteer work so I'm wondering if any of that would come into playYou don't seem to be doing a lot wrong.
You will need an accountant to submit your accounts online as it will be cheaper than buying and learning the HMRC software (most software suppliers seem to want to charge you a monthly subscription nowadays)
Your voluntary work should not have any affect.
Is it something that has a long term future or is it a passing phase?
Good luck.
You will need an accountant to submit your accounts online as it will be cheaper than buying and learning the HMRC software (most software suppliers seem to want to charge you a monthly subscription nowadays)
Your voluntary work should not have any affect.
Is it something that has a long term future or is it a passing phase?
Good luck.
Peter911 said:
You don't seem to be doing a lot wrong.
You will need an accountant to submit your accounts online as it will be cheaper than buying and learning the HMRC software (most software suppliers seem to want to charge you a monthly subscription nowadays)
Your voluntary work should not have any affect.
Is it something that has a long term future or is it a passing phase?
Good luck.
Thanks! It should have a long term future, my aim would be to expand and contract and use local labour when needed. I already have 2 businesses similar to mine I can partner up with should I win any larger schemes, they both have fantastic hands on experience but not the experience to run larger projects or the intricacies of some of the potential regs issues of bigger schemes. I have most of the tools I need and keep adding as and when I invoice work. You will need an accountant to submit your accounts online as it will be cheaper than buying and learning the HMRC software (most software suppliers seem to want to charge you a monthly subscription nowadays)
Your voluntary work should not have any affect.
Is it something that has a long term future or is it a passing phase?
Good luck.
I guess I'm stuck between whether I need to be a Ltd company or if I should just stay as a self employed sole trader. I've checked on company names and there are perfect names available. I suppose I need to weigh things up and look at the risks regarding the labour I use and partnering with other firms.
It would be nice to pick up larger schemes once I get things ticking along, no rush at the moment though, going to use the winter period to do a bit of marketing and sort out things like website and social media (in between writing a book haha).
It might end up being just the excuse I need to buy a kei truck
Silvanus said:
I guess I'm stuck between whether I need to be a Ltd company or if I should just stay as a self employed sole trader. I've checked on company names and there are perfect names available. I suppose I need to weigh things up and look at the risks regarding the labour I use and partnering with other firms.
It would be nice to pick up larger schemes once I get things ticking along, no rush at the moment though, going to use the winter period to do a bit of marketing and sort out things like website and social media (in between writing a book haha).
Simplicity is key IMHO. If you don't need to incorporate, eg for liability or tax-saving purposes, leave it.It would be nice to pick up larger schemes once I get things ticking along, no rush at the moment though, going to use the winter period to do a bit of marketing and sort out things like website and social media (in between writing a book haha).
As for growth, you seem to be doing remarkably well organically, so let it roll and see how it goes.
As for accounting, a good book-keeper is all you need. Record all money, in and out. Keep all receipts. Offset whatever you can against tax, pay the rest on time. If your customers are VAT-registered, consider registering too, to reclaim VAT on purchases. If they are Joe Public, maybe best to leave it until you reach the turnover threshold.
'I already have a name and logo but not sure how best to go about it.' - you've already done it
I decided that after 20 years of a desk job, I would follow my passion (well one of them!) and set myself up as a tree surgeon.
I went self employed and haven't looked back. I have an accountant who completes my year end bits and bobs. I use Xero accounts software for invoicing and all the business transactions. Great bit of kit and the mobile version is very good, you can do just the right amount of stuff with it. Sage is a good option too, but I don't have experience of this.
I use only sun contract labour and will try to avoid employing people as I feel it makes more work. I simply get them to invoice me at the end of the week and pay them by bank transfer.
Hope that this is of some help along with the other replies on here.
I went self employed and haven't looked back. I have an accountant who completes my year end bits and bobs. I use Xero accounts software for invoicing and all the business transactions. Great bit of kit and the mobile version is very good, you can do just the right amount of stuff with it. Sage is a good option too, but I don't have experience of this.
I use only sun contract labour and will try to avoid employing people as I feel it makes more work. I simply get them to invoice me at the end of the week and pay them by bank transfer.
Hope that this is of some help along with the other replies on here.
robinh73 said:
I decided that after 20 years of a desk job, I would follow my passion (well one of them!) and set myself up as a tree surgeon.
I went self employed and haven't looked back. I have an accountant who completes my year end bits and bobs. I use Xero accounts software for invoicing and all the business transactions. Great bit of kit and the mobile version is very good, you can do just the right amount of stuff with it. Sage is a good option too, but I don't have experience of this.
I use only sun contract labour and will try to avoid employing people as I feel it makes more work. I simply get them to invoice me at the end of the week and pay them by bank transfer.
Hope that this is of some help along with the other replies on here.
Cheers Robin, sounds like we may have gone down similar paths. What part of the world you you operate I went self employed and haven't looked back. I have an accountant who completes my year end bits and bobs. I use Xero accounts software for invoicing and all the business transactions. Great bit of kit and the mobile version is very good, you can do just the right amount of stuff with it. Sage is a good option too, but I don't have experience of this.
I use only sun contract labour and will try to avoid employing people as I feel it makes more work. I simply get them to invoice me at the end of the week and pay them by bank transfer.
Hope that this is of some help along with the other replies on here.
robinh73 said:
Silvanus said:
Cheers Robin, sounds like we may have gone down similar paths. What part of the world you you operate
I am based in sunny old Anglesey in North Wales. Where are you? If you need any help, please just drop me a message.As stated above, forming a limited company is not something you HAVE to do to run a business.
The tax advantages of running a buisiness through a limited company are very much diminished compared to previous years (and getting even more diminished next April when Corporation Tax rates go up). These is still something to be said for the limited liability that a limited company offers but adequate third party insurance can take care of that if you want to remain as a sole trader.
As a sole trader, you can more or less chose your own "trading as" name without having to register it with any authority. The only priviso is the general one that you should not chose a trading name that is too similar to the name of another trading entity. For instance, if you wanted to set up a fast food outlet it would not be a good idea to call yourself "McDonalds".
The tax advantages of running a buisiness through a limited company are very much diminished compared to previous years (and getting even more diminished next April when Corporation Tax rates go up). These is still something to be said for the limited liability that a limited company offers but adequate third party insurance can take care of that if you want to remain as a sole trader.
As a sole trader, you can more or less chose your own "trading as" name without having to register it with any authority. The only priviso is the general one that you should not chose a trading name that is too similar to the name of another trading entity. For instance, if you wanted to set up a fast food outlet it would not be a good idea to call yourself "McDonalds".
Silvanus said:
Thanks, lovely spot, I'm Surrey/Berkshire
Equally lovely there! Good luck with the new venture! Not sure if this is relevant, but advertising wise, I find that Googl Business page is great, my website generates a bit and then Facebook business page helps out too. My Facebook business page got hacked and deleted which caused no end of stress. I had to start all over again. It made me rely less on that and focus more on the other advertising mediums I use. 4 years on and I am getting a lot of repeat business and referrals which is nice.
Anyway, good luck and any questions, message me.
robinh73 said:
Silvanus said:
Thanks, lovely spot, I'm Surrey/Berkshire
Equally lovely there! Good luck with the new venture! Not sure if this is relevant, but advertising wise, I find that Googl Business page is great, my website generates a bit and then Facebook business page helps out too. My Facebook business page got hacked and deleted which caused no end of stress. I had to start all over again. It made me rely less on that and focus more on the other advertising mediums I use. 4 years on and I am getting a lot of repeat business and referrals which is nice.
Anyway, good luck and any questions, message me.
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