I am hoping to start my business in the new year and want to start setting it up whilst i finish my icb level 2
i have a number of questions that i cant find the answer to after a quick scout around the site, wonder if anyone can help?
1. Will I need a business bank account if i am setting up a sole trader or will a seperate one in my name do?
2. Which payments methods do you guys accept? cash and cheque are the obvious ones but do you accept any others?
3. where do you guys advertise?
4. who do i contact to set up and register legal structure of business as a sole trader? does anyone know what this involves? not sure if i have to contact HMRC or someone else for this?
5. I'm assuming that as i wouldnt be charging vat as i wouldnt be eligible that i dont have to do anything about registering or telling anyone?
6. Are any special licenses needed or any special regulations to follow? i know about money laundering and will be getting an ICB practising certificate and insurance.
7. If i want to work from home are there any regulations or tax implications that i should be aware of?
1. Banks don't like customers using a personal account for business transactions which is normally against their terms. It's advisable to set up a business bank account, and most banks offer a period of interest free banking so shop around.
2. Look into setting up your clients on Standing Orders. This improves cash flow, especially when starting out.
3. Try a mix of advertising methods e.g. local newspapers, leaflet drops, friends & family etc - dont forget networking!
4. You need to register with HMRC as self employed within 3 months of starting to trade. You will also need to register with them to pay class 2 NIC.
5. As long as your turnover is less than £67,000 over the next 12 months theres no need to do anything.
6. Other than for money laundering, you need to register for data protection purposes. Contact the Information Commissioners office for more info.
7. No regulations in the UK, but you may need to let your mortgage lender and insurer know. Tax wise you may want to claim a weekly fixed allowance to cover light and heat and telephone etc.
thanks for the help, none of it sounds too scary which is great, all along the lines of what I thought i'd have to do! with regard to setting up a standing order, would this just mean me providing customers with my bank details and getting them to set it up or am i able to arrange it myself?
