Advice required on registering a new small business please

UberTiger · 12 Dec 2010 at 20:36

Hey all,

So I'm currently providing a printing service to friends and students. Large format stuff, so mainly A3 to A0 and slightly bigger. Initially it was just my housemate and I doing it for his coursemates and whilst not a huge money spinner it's got the potential to certainly pay for our time and make it worth while in our spare time. Plus I've started dabbling with canvas prints and the like, so it's got the possibility to expand a bit.

What I'd like to know is if anyone can advise me about how and where to register legitimately. Whether it is worth it if we're only earning a small amount of cash or what the threshold might be that we 'legally' should start declaring it anyway? What the pros and cons may be?

The other thing is it's run from home, so would that cause me an issue when registering it as a business? Someone mentioned to me that many local councils have 'business centres' that allow you to register through them to have an address other than your home address but couldn't give me any more info on that, anyone know if that's true?

It would be nice to be able to offer our services to companies, and if a friend recommends us I'd like to be able to provide receipts etc. and be all above board - especially as I presume a company I'm providing a service to would like VAT receipts as it would be tax deductible? - I'm really not sure about any of this which is why I'm asking about advice on where I can read up on this and discuss the options.

Cheers!

csmager · 12 Dec 2010 at 20:51

I'd start here:

http://www.hmrc.gov.uk/startingup/index.htm
http://www.businesslink.gov.uk/bdot...DECISION&r.i=1073792556&r.l1=1073858805&r.s=e

But if you're actually going to do it, you'll probably need an accountant to help you get started.

UberTiger · 12 Dec 2010 at 21:06

Nice one csmager! Will have a read up on that.
I can easily keep track of all our incomings and outgoings to provide to an accountant and now that you mention it, it's reminded me that I do know a family friend who's an accountant, would they have to actually do much for me?

PhillyDee · 12 Dec 2010 at 21:10

Firstly, you need to decide if you are going to be self employed or a limited company (There are others, especially for a partnership). An accountant is the best person to ask, plus, you really could do with one for the end of year and advice etc. They know all the (legal) fiddles.

If you do need some other advice or thoughts etc, you can ask me, I have been running my own small business for a year and a half now (alongside my main job). Mine is a limited company, because I already have a major income.

I asked the council about business rates, and these are not required for a residential house. What you are talking about is having the registered office itself at a seperate address. There are companies which provide this. There is bound to be a business centre locally where you can get some free advice.

Leesolo · 12 Dec 2010 at 21:10

I think they just need to certify the accounts, i.e. stamp them as correct etc for the purpose of HMRC? although I'd check that out

Makhaira · 12 Dec 2010 at 21:10

If it's just an endeavour that you're doing in your spare time, I would suggest you deal with the finances yourself - I went down that route and learnt a lot, and the local business advisors at tax offices tend to be very helpful. All you really need to do is to keep a ledger throughout the year of all your income and outgoings, and receipts. Job done.

An advantage of setting yourself up as a Ltd company is that you get some level of legal protection from the company entity. It is not bulletproof, but it's better than being a bare individual.

HSBC do some nice business banking options by the way, where if you only make deposits in person, and all outgoing payments online, you have no bank charges (they may have changed now, was a few years ago).

Anyways, all the best to you matey

.

PhillyDee · 12 Dec 2010 at 21:14

Accounts for a limited company are far more in depth as well! I tried, and failed miserably, I don;t speak gibbersih, so was completely out of my depth!
Easier for self employed people.

Makhaira · 12 Dec 2010 at 21:18

PhillyDee said:
Accounts for a limited company are far more in depth as well! I tried, and failed miserably, I don;t speak gibbersih, so was completely out of my depth!
Easier for self employed people.

I was lucky enough to have some excellent local advisors who helped me through my first couple of returns. The new online system is much better, as it automatically removes a lot of the sections that don't apply.

(That's right guys, a public service IT system that has a positive effect!)