Is it a good idea to have a company name when starting a bookkeeping business ? What would I need to do when setting it up ... ... does it need to be registered ? ... does it need to be a limited company ? Asking now as I believe it's best to start as you mean to go on.
Is November a good time to startup ?
I have the HMRC information CD, which is supposed to contain details of Self Assessment and Payroll. Without any experience, is this a good self-learning resource ?
Feeling a bit nervous of starting up, but keen to bite the bullet if it is considered worthwhile. Been trying to find employment to get experience, but no one seems to want a 59 year old and totally deaf clerk (even on a FREE Work PLacement or Voluntary).
If you mean a company rather than a sole trade or partenersip (or LLP) then you will need to be registered with companies house.
You can buy a start up company for as little as £30 now a days and there are no other material set up costs if you complete the various initial form yourself, all are fairly straight forward with the help of Google and forums such as these.
If its a company you are setting up then it needs to be limited by shares (or less likely limited by guarantee, however this option is less likely and again Google can fill you in on the details if you are interested.
If you going with a company then I don't see anything wrong with a November year end. Your accounts will need to be lodged and corporation tax paid 9 months after your year end. A company's first period can easily be extended to 18m when you set up the company (or shortened) so there is a degree of flexibility there.
If you are setting up as a sole trade or partnership then I always tend to suggest preparing accounts to 31 March to avoid any overlap issues with income tax. Just makes the whole process cleaner in my view. But this is by no means essential and really only depends on whether you thing your first period will be profitable when considering overlap.
If you are just a one man band but are anticipating high profits > 50k at least then you could consider setting up a partnership with a corporate partner (you being the 100% shareholder), this method can help reduce tax but before going down this route you may want to discuss with your accountant.
I'm in no way a payroll expert but i hear that the HMRC CD are very useful.
And I hope if you keep plugging away you will be given the placement you want.
Hope this makes sense, not proof read.
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Forgive the typo's I generally do not proof read. Just lazy I guess!
Heh heh, yeah it is a big step going alone and rightly so that you have a lot of questions.
Hopefully we can point you in the right direction.
Here are a few bits of advice for you.
1) I would recommend you think up a trading name, can be as simple as ABC Bookkeeping Services. Search the web for bookkeepers in your local area to ensure no one else trades under the same name though.
2) You need to decide whether your business will be via a Limited Company or a Sole Trader. There are advantages to going Limited but it will be more costly for an accountant to the year end accounts and there is quite a bit of paperwork to file each year. Don't be put off though because good planning on this part can save you some tax compared to a sole trader.
3) To register, you can either register a limited company using many online formation companies and they can do it all by email if need be. Just google Company Formation, or if you want to have a go your self at it, then go to www.companieshouse.gov.uk and you can down load the forms.
If you decide to go as a sole trader, all you need to do is fill out a form called CWF1 which you can obtain either by download from www.hmrc.gov.uk or you can apply online on the same website.
From a soletrader point of view, you will need to pay Class 2 NI which the inland revenue will most likley collect quarterly and its about £36 a quarter.
4) November is as good as any other time to start out, but for your 1st accounting period, I would do you own accounts to 31st March if you are a sole trader. This will ensure you books are in line with the tax year. 31st March and 5th April are treated the same.
5) It might be worth having a look at attending some Inland Revenue Workshops to get a grip on payroll and self assessment. You could self learn off the CD, but its better to get some advice and direction from some professional guys.
6) I would keep trying to get some placement of sorts to run along side your own business. This will give you valuable experience that you can bring to your own business.
There are so many other things that could be discussed and explained further with regards to Professional Indemnity Insurance, Business Logo's and Stationery, Getting affiliated with a bookkeeping professional body, but its difficult to explain it all on here and is so much easier explaining this sort of thing face to face.
You're not alone. I'm 56 next month, not worked for 5 years, taking bookkeeping exams and trying to break back into the world of work. It is hard, toughest thing I think is overcoming own lack of confidence. I think networking will help, mixing in business clubs etc, might get some business leads or at least start getting involved with businessy things and build up confidence. I'm also trying to get into teaching (college evening/weekend BK courses) but no joy yet.
As regards age, I take great heart from Ronald Reagan's quote during a 1984 presidential tv debate with Walter Mondale: "I want you to know that I also will not make age an issue of this campaign. I am not going to exploit, for political purposes, my opponent's youth and inexperience."
He also said "I am not worried about the deficit. It is big enough to take care of itself." Wonder if Ed Miliband thinks like that too?
If you want a good laugh, there are more at http://politicalhumor.about.com/cs/quotethis/a/reaganquotes.htm
Best of luck, Phil
ps I'll find your advice useful too, thanks Paul/MrB
-- Edited by PhilMcTankup on Monday 27th of September 2010 08:40:02 AM
some good advice regarding the form of your business but I would urge you to go the simpler self employed route at least to start with. You will be able to do your own self assessment without any problems (and of course help from here) and if the business grew to the level where there were tax savings by incorporating then do that at that time. there are so many extra things to worry about as a company and you need to consider the taxation, legal and accounting implications of all transactions in a much more detailed way than if you were simply self employed. This can be something to look forward to when you have a few decent clients.
when looking for a suitable name, don't just look in your local area, you have to look nationwide, otherwise you may get a nasty letter from a company with the same name or even one very similar.
Class 2 NI only starts when your profits are over £5075 if going down the self employed route - if you are small there are not really any advantages in going Ltd, it will only cost you more!
Need to think about MLR registration, insurance, pc and software....
If you have not done payroll and SA before, I woudl recommend a course of some sort, whether it be at home or in class - I learnt myself from the HMRC stuff so the CD would be a good place to start.
Certificate of Compliance £76.38 pa (Practicing Certificate)
£206 for the first year, and £156 per annum thereafter; PLUS the PI insurance £ ?? Seems I shall need 2 clients just to exist.
Still keen to go ahead. However, I may be facing a huge battle of trying to Network in the usual sense while totally deaf. Any ideas as to how I might get around it ?
-- Edited by ProBowlUK on Thursday 30th of September 2010 07:24:09 PM
-- Edited by ProBowlUK on Friday 1st of October 2010 12:04:09 AM
-- Edited by ProBowlUK on Friday 1st of October 2010 12:06:03 AM
