Setting up Business Advice.

[Dave271069]

Hello all,
Mugs to family and friends going well now and the next step is to start selling further afield, What i dont want to do is upset anyone especially the Tax Man. so, what do i need to do first to set up a business? i am not making any profit at mo as initial outlay has exceeded any takings i have taken. What do people do if say setting up a small business from home like anne summers, licking envelopes etc?
any hints tips all apprecieated.
Dave

[smitch6]

you need to tell the tax man defo.
if your still doing a full time job then contact them adn ask their advice.
i am lucky i have a good friend who's an inspector :~ so he gave me advice and told me how to do things
but rem to tell them when the business is starting if it isn't active yet

[Dave271069]

What do i tell the tax man if im not going to get no where near the tax threashold?

[smitch6]

i registered and got a cheque off them for tax i paid last yr from when i was working lol
then you just won't need to pay any tax next year as you won't have to file any papers until next yr now
it's NI that you will need to inform if you think you will earn under 2K, which is what i need to do

[WorthDoingRight]

When you start a business it will depend on whether you are running it as a sole trader, partnership or as a limited company as to your tax situation. You will need to complete a self assessment tax return I expect in most cases. If you form a limited company then you will be contacted about 3 months after you form it by the tax office anyway.

[Dave271069]

I would imagine sole trader as its mainly for fun but if I make a few quid don't want to do it wrong . Will register business name soon then get onto tax man, also currently I work full time anyway with a dream of giving it up in a years time, that's what my business plan says anyway.

[jennywren]

It would be simpler to talk to the tax people, they are to help, and have leaflets, starting a business is more than just tax, walk into any bank and pick up flyers. so before you start read as much as you can, loads on the internet, the internet is you friend, the information is free, advice, ect, just because someone told you something and its not right the tax man is unforgiven. There is free professional advice everywhere. Having a job and being a sole trader is more complicated than you think

[TjCanvas]

Don't be afraid to talk to HMRC they can tell you everything you need to know, they're not dragons as long as you keep on the right side of them. Also take a bit of time reading through the 'Starting a Business' section of their website and also have a read through the business link website, you will find out alot of useful information. It is worth having a good read and getting your head round a things before you phone them, this way you will have more of an understanding of the information you are given. Make notes of the most important information and keep it for reference.

Tax returns aren't as daunting as you would think. They are supplied with a guide of each section and there is a helpline for anything your not sure of. Information for your employed work is on your P60.

Most important thing is to KEEP RECORDS OF ALL TRANSACTIONS. It doesn't matter if your running at a 'loss' as long as you have the paperwork to back it up. Most successful businesses file a loss in the first two years due to reinvestment to grow. If you have made a loss you may get some tax back.