M9O OEY Posted January 8, 2011 Share Posted January 8, 2011 Hi Me and my brother in law have been talking of starting up our aerial/sky installation business in our time off from our normal jobs as we both work shifts. He did it for 10yrs previously and knows the job inside out. I'd be his apprentice as such and also director What I'd like to know is how easy is it to start a business ? Is it just a matter of getting tools van etc and registering the company name we'd need public liability insurance. But not sure what else ? he does a bit on the side now but with the digital changeover in April I think we could be on to a winner Many thanks for any replies M9O OEY Quote Link to comment Share on other sites More sharing options...
Sarnie Posted January 8, 2011 Share Posted January 8, 2011 With regard to actually setting up the company, thats really all you need to do. Find a name on Companies House that no one else has got and get an accountant to set it all up for you (costs about £80 or so). Then you'll need to set up a business account etc etc Depending on your occupation, you may want to consult your employer, as some explicitly say within your contract that second jobs are a no no.... Quote Link to comment Share on other sites More sharing options...
M9O OEY Posted January 8, 2011 Author Share Posted January 8, 2011 Thanks Pretty sure my company are ok I work as a maintenance electrician and someone else runs a business outside of work and nothing has ever been said. When u say companies house is that like an online thing iv never heard of them Quote Link to comment Share on other sites More sharing options...
andlid Posted January 8, 2011 Share Posted January 8, 2011 What do you currently do? Will this side kick effect this in any way? (same type of work?) I'd think it would be pretty hard to 'hide' that you're doing a sidekick with taxes etc with the current employer? Might be worth talking to your hr department... sometimes it's not a good idea if you get my drift... Not sure whats needed in the UK regarding actually starting a company... over here it's REAL easy... register get some papers from the CRO office and off you pop. Would you need public liability insurance do you think? Quote Link to comment Share on other sites More sharing options...
andlid Posted January 8, 2011 Share Posted January 8, 2011 http://www.hmrc.gov.uk/startingup/ Quote Link to comment Share on other sites More sharing options...
Matt L Posted January 9, 2011 Share Posted January 9, 2011 depends what type of company you want to set up, if its limited do it the way above, costs more to set up and takes a bit longer and you HAVE to produce accounts, otherwise set up as a partnership in which case you can do that pretty much now as you dont have do do any forms or register anything other than set up a bank account iirc and away you go. Quote Link to comment Share on other sites More sharing options...
Wasso Posted January 9, 2011 Share Posted January 9, 2011 Probably wise to setup the business as a partnership rather than looking to go Limited Co straight away. Run the business as a partnership for 12-24 months before thinking about going Limited (less hassle). Read up on your insurances, I got a quote for my business idea online and found it 5 times cheaper to actually call them up. You'll also need a business bank account!! Good luck Quote Link to comment Share on other sites More sharing options...
Sarnie Posted January 9, 2011 Share Posted January 9, 2011 Thanks Pretty sure my company are ok I work as a maintenance electrician and someone else runs a business outside of work and nothing has ever been said. When u say companies house is that like an online thing iv never heard of them http://www.companieshouse.gov.uk If you've never heard of Companies house, then it may be better to get an accountant to do it for you Quote Link to comment Share on other sites More sharing options...
M9O OEY Posted January 9, 2011 Author Share Posted January 9, 2011 Thanks for the fast replies i would like to do it all above board to be honest ,as I dont fancy any big tax bills coming through the door. Iv been told that in the first yr of starting a business u don't have to pay tax as the government give u relief . No puns please ! I wasn't sure of this as u dont get jack xxxx off the government. Has anyone heard this before Quote Link to comment Share on other sites More sharing options...
Wasso Posted January 9, 2011 Share Posted January 9, 2011 I've not heard that to be honest, best thing to do is check out the HMRC website, it has all the info you require. Next alternative is to take someone to the pub who own's their business, be it a partnership or limited and then make your choice. Limited Company costs more to setup and requires monthly accounts and submissions yearly to Companies House. Your accountant would charge you more in this instance. Partnership costs nothing to setup and is far easier to manage as you startup your business. Read the following it will help make things clearer: Partnership http://www.bytestart.co.uk/content/19/1 ... ship.shtml Limited Company http://www.bytestart.co.uk/content/19/1 ... bili.shtml The only advice I give is the following: If things go t!ts up as a partnership, you and your business partner are liable for any debts the company get into, this could if required by the "supplier" to instigate legal action against you as a person, which could result in a CCJ being registered against you personally. If you maintain your business in a way that does not fall into debt, there's no worries. As a Limited Company, if the same issue was to occur and the business went into debt, you as a person are not at risk, only the business, that would either go into liquidation, receivership or wound up. There will be records held against you at companies house, so say in the future you were to become a director of a business, any previous failings would be recorded against your name. Both have their pro's and con's. Personally as mentioned you'd be best to startup as a partnership, if it all goes wrong after 6 months you just get back to your old jobs. If the business succeeds and warrants the need to be a limited company then make the change. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted January 9, 2011 Share Posted January 9, 2011 Don't forget to work out an exit strategy for each of you, such as what happens if one wants to leave but the other wants to carry it on etc..... Quote Link to comment Share on other sites More sharing options...
rtbiscuit Posted January 9, 2011 Share Posted January 9, 2011 this is interesting reading and has raised some points i was unaware of, i am in the process of setting my own business up but did not know you had to register it with the HMRC. it really is a part time hobby and the money made is really just being re invested in the company. at the moment i've about broken even so its not like i'm in any kind of major profit. i am keeping detaield financial accoutns of all ncoming and out going. my plan was to start it as a hobby and if it takes off then go down the relevant route. but that website says doing that could incur a financial penalty. i am already in full time employment what would registering as self employed have effects wise on me? does it make getting loans harder? i have nothing against paying my way or contributing to the countries coffers, but at the moment if i had to start paying NI contributions of 2.40 a week would heavily undermine the company. it does say if earnings are low i can apply for low earnings exemption or something. Quote Link to comment Share on other sites More sharing options...
Wasso Posted January 9, 2011 Share Posted January 9, 2011 Although illegal, do what everyone else does... Keep it quiet until you are ready to inform the HMRC. If you feel the size of the business becomes obvious you should have notified HMRC. if it ticks over at the weekend, put £250 in your pocket at the end of the month I'd keep hush. Might be worth talking to other traders in here to see how they have approached the situation? Quote Link to comment Share on other sites More sharing options...
Sarnie Posted January 9, 2011 Share Posted January 9, 2011 this is interesting reading and has raised some points i was unaware of, i am in the process of setting my own business up but did not know you had to register it with the HMRC. it really is a part time hobby and the money made is really just being re invested in the company. at the moment i've about broken even so its not like i'm in any kind of major profit. i am keeping detaield financial accoutns of all ncoming and out going. my plan was to start it as a hobby and if it takes off then go down the relevant route. but that website says doing that could incur a financial penalty. i am already in full time employment what would registering as self employed have effects wise on me? does it make getting loans harder? i have nothing against paying my way or contributing to the countries coffers, but at the moment if i had to start paying NI contributions of 2.40 a week would heavily undermine the company. it does say if earnings are low i can apply for low earnings exemption or something. If you are currently employed then you will be paying all your tax and NI at source, hence you are already in the system. Therefore I wouldn't be in a hurry to declare any non profit activities just yet, as they will be none the wiser. What attracts attention is when people go from an employed position and then drop off the tax paying radar e.g they are working cash in hand etc. Strictly speaking though you should inform them from the outset, even if your not turning a profit or even making a loss. Quote Link to comment Share on other sites More sharing options...
varley16 Posted January 9, 2011 Share Posted January 9, 2011 i was thinking about doing the same, advice on here is great. i want to buy damaged cars, either fix them or strip them, unfortunatly ive not got the space to do it currently so will have to wait untill we buy our next house. got the tools, not the space. Quote Link to comment Share on other sites More sharing options...
waseem1978 Posted January 9, 2011 Share Posted January 9, 2011 Anyone wanting to start a business can give me a call on 07951829640 or pm me. I am an accountant and will look after forum members. I will not profit from you. Quote Link to comment Share on other sites More sharing options...
Arkwright Posted January 9, 2011 Share Posted January 9, 2011 I run a small business from home. I have a retirement pension from my former full time work and tax is paid at source. I pay my own tax separately to HMRC on my business and this is all above-board using an accountant. A few years ago before I became ill I had a bigger turnover than now and HMRC increased my tax payments via my pension so I did not have two tax references. Don't forget you may need to register for VAT when you reach a certain turnover. Also you will need public liability insurance and business insurance (I would see a broker re this rather than muddle through online as you will be able to explain your business to him and he will be able to advise you face to face.) You may incur a visit from your local planning dept if you work from home as a seach of your deeds may show that there are certain things you can't do. For example I have a transit size signwritten van. This is too large a vehicle to be kept at home and is written into the deeds (as was pointed out to the council by some annonymous neighbour) I now have written permission from the couincil to keep the vehicle at home! There will also be local business enterprise grouops to help and advise you and maybe start-up schemes depending on your age. Best of luck. Quote Link to comment Share on other sites More sharing options...
rtbiscuit Posted January 9, 2011 Share Posted January 9, 2011 thanks for the info guys. will carry on my setting up and seek an accountant out middle of the year to end of the year. Quote Link to comment Share on other sites More sharing options...
M9O OEY Posted January 9, 2011 Author Share Posted January 9, 2011 Thanks everyone for all the replies Weve got some really good info off everyone and will investigate all the avenues over the next couple of days, and then hopefully officially start our business Again id like to thank everyone who has put some input and waseem who said hed help out all forum members and not profit Getsures like that are why this forum is bar far the best forum iv ever been on Quote Link to comment Share on other sites More sharing options...
Ricey Posted January 9, 2011 Share Posted January 9, 2011 Anyone wanting to start a business can give me a call on 07951829640 or pm me.I am an accountant and will look after forum members. I will not profit from you. Its a brave man who puts his number out in an open forum You might need to get a company bank account set up ETC. A decent accountant tends to be a good one stop shop for setting you up with all you need and ensuring you make the best of any tax offsets your entitled too. Good luck Quote Link to comment Share on other sites More sharing options...
rtbiscuit Posted January 9, 2011 Share Posted January 9, 2011 You might need to get a company bank account set up ETC. A decent accountant tends to be a good one stop shop for setting you up with all you need and ensuring you make the best of any tax offsets your entitled too. Good luck lucy already has an accountant who she uses for the flat we rent out. so will probalby see them when neccessary. Quote Link to comment Share on other sites More sharing options...
Ricey Posted January 9, 2011 Share Posted January 9, 2011 I'd probably stand to get a right bollocking from the Revenue for not telling them about our rental property but given that its been nothing but a cash sinkhole and not turned a penny of profit in 3 years I've not seen the point! I looked into being a self emp consultant a while back (until I realised no one would pay for what I know ) and the tax breaks you get for being a LTD company/offsetting expenditure ETC are fricking awesome.......provided you can stay out of IR35 Quote Link to comment Share on other sites More sharing options...
rtbiscuit Posted January 9, 2011 Share Posted January 9, 2011 I'd probably stand to get a right bollocking from the Revenue for not telling them about our rental property but given that its been nothing but a cash sinkhole and not turned a penny of profit in 3 years I've not seen the point! I looked into being a self emp consultant a while back (until I realised no one would pay for what I know ) and the tax breaks you get for being a LTD company/offsetting expenditure ETC are fricking awesome.......provided you can stay out of IR35 from what lucy said a while back i think you can offset the vat of all things you spend on the rental property. so anything done or bought to maintain the property can be offset...i think Quote Link to comment Share on other sites More sharing options...
Ricey Posted January 9, 2011 Share Posted January 9, 2011 from what lucy said a while back i think you can offset the vat of all things you spend on the rental property. so anything done or bought to maintain the property can be offset...i think I'd have to make a profit first!!! If I remember rightly from my CeMAP days you can offset any costs incurred to purchase and maintain an asset (the property) against capital gains tax when you sell (eg make 20k profit after personal 'non-taxable allowance' and offset the 10k spent doing it up against your CGT ). Quote Link to comment Share on other sites More sharing options...
rtbiscuit Posted January 9, 2011 Share Posted January 9, 2011 urm .... yeah.... thats exactly what i meant Quote Link to comment Share on other sites More sharing options...
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