I Need To Register

Discussion in 'Managing Your Business' started by CNS-southwest, Oct 25, 2012.

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  1. CNS-southwest

    CNS-southwest Grand Master
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    As the title says, I think it time I register so everything is above board for when I begin.

    Now firstly my business has a name so do I register as a sole trader or as business and how do I do this?

    If I register as a sole trader can I still open an bank account in the business name and can I still trade under a company name?

    Do I need to be vat register to register as a business, I don't plan on exceeding the bat limit in the first year.

    All help and advice appreciated, any link you have of where I can register or get advice or guides etc more than welcome.


    Thanks


    Dave
     
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  2. laddergarder

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    Its a little more complicated if you register as a company, with corporation tax etc, but ultimately as far as tax goes it works out about the same in most cases. It used to be that for larger companies, the tax liabilities was lower, but that changed in recent years. Some will argue that have limited after your company name looks more professional. Which I think is a fair point.

    However I went down the other route of just registering as a sole trader, you can still use a business name, but on your office stationery you have to put 'your name' t/a 'your company name'. You can also open up a business account which is recommended that you do, and can make it in the business name. That way when people pay by cheque, they can write them out to your business name.

    You can wait up to three months before registering, which is recommended in the event that you don't pursue this after a few months. On the other hand, you can only take cash payments if you don't do it right away.

    You will have to pay int 2 ni, once you register they will send you out a form about this. If your turnover is under a certain limit, which it will likely be in your first year, you can file a form stating that you dont feel that you will be liable to pay this due to low turnover. I would get that sorted.

    I would also recommend that you speak to an accountant, they will likely charge you £150 for doing your tax return, and will help set things up for you.
     
  3. Joe

    Joe Active Member
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    You get 3 months from your official date of trading, but best to do it sooner rather than later, that way you can have no quibbles regarding buying equipment before your official trading date. Bear in mind you do still have to pay national insurance contributions even if you made no money.

    To start with you need to register as self employed, if you are going to use a business name any correspondance you use must be shown as dave bloggs T/A cleannsimples etc. this goes the same for when you open up a bank account as a sole trader, it will be set up under the same name. Is a business bank account really necessary to start off with? I think until your getting paid mainly in bank payments its not worth doing? you will find when you start that 90% of the time you will be paid cash, especially if your starting at weekends when people will be in.

    Being VAT registered is compulsory over £70k a year turnover, but under £70k I dont think its a good idea unless you have an awful lot of commercial customers who are also vat registered.

    Hope this helps mate :)
     
  4. Joe

    Joe Active Member
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    beat me to it bloody hell took me 7 mins to type it out :(
     
  5. CNS-southwest

    CNS-southwest Grand Master
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    Thanks guys, great bit of info.

    I want to look as pro from te outset as possible as I plan to hit commercial early on If I feel I'm doing well on domestic.

    Ill be having a business bank account as want to avoid cash as much as possible as it cost too much chasing money. Plus natwest do a business account for free for the first year too.

    I think I'll go sole trader and do my name T/A clean n simple.

    So where do I go to register as sole trader, is it like cars where if you have one it must be insured? Ie if I register as a sole trader do I need to get insurance straight away? I won't be working till feb.

    Also do I need to tell my work?
     
  6. Joe

    Joe Active Member
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    go on hmrc website to reg as a sole trader mate, and then get insurance a few days before you actually start. Insurance not compulsory but is a must have!

    Good luck getting a large amount of commercial early on and training your customers to all pay by bank and paypal, i try and do that but they have the cash already there for me and its hard to say no to it!
     
  7. Joe

    Joe Active Member
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    Oh yeah and try and leave registering until as late as possible, you get 3 months from when you start and if you aint gonna star until feb you dont wanna be paying ni!
     
  8. CNS-southwest

    CNS-southwest Grand Master
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    If the cash is there ill take it, I planning on doing a collection on Fridays for monies. But would prefer cheque/PayPal.

    I already pay ni at my full time so how will that work ??
     
  9. laddergarder

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    You have to pay Tax and Ni for both jobs, an accountant will prob concider your tax & ni allowance used up through one job, and basically you'll pay more through the window cleaning because of it. your class 2 ni is different though, that on top of your income ni. I dont know how much it is but its about £3 a week I think. I just pay it direct debit. You have to start paying that, from the day you start trading, if your turnover is more than the allowance.

    http://www.hmrc.gov.uk/working/intro/class2.htm
     
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