I'm a reader rather than a poster, but I hope to change that!
I'm looking to register as a sole trader. I will need the HMRC to supervise me for Money Laundering Purposes and also will need to get myself some PII.
I was just wondering what the best order to do this would be. I have no clients as of yet and have not advertised for any. I was going to wait until I had a client before I registered with HMRC, but read recently that seeking work would be the point at which I needed to register. Is this the case?
My thinking was that I didn't want to be paying out NI and MLR if I was yet to have any clients - although I know there is a small earnings exemption for class 2 NI which I'm sure I'd qualify for with this not being my primary employment.
I feel like i'm going round in circles a little. And reading back over this post, i'm sure you think so too! :)
Any help would be much appreciated. Thanks in advance.
I would say that you need to become registered with HMRC as sole trader, be covered with them for MRL purposes and get some PII in place before you start actively going out to get clients.
You wouldnt want to take someone on and then find it takes a few weeks to get PII place, in which period you might have given them some advice which they rely on that proves wrong and you end up being sued without having any cover in place.
If you are intending to go out and get clients they better to have all the red tape issues sorted first rather than avoiding paying £300 at max for PII and MLR cover.
If you are worried that you may not get any clients and dont want to shell out the money incase you dont then you have to ask yourself are you doing the right thing by going self employed. Although getting clients is the difficult thing there is plenty of people who need there matters looking after if you are prepared to put the work in to go out and get them.
Thank you, good advice. And when I have it written in front of me, it all seems so logical and makes me feel quite silly!
I think because my plan is to build my business up slowly while gradually reducing my employment elsewhere, it's inevitable that it may take me time to get my clients because it won't be what I am doing 24-7.
In short, I need to stop trying to save a few pounds in the start and get going!
I am similar to yourself in that i am working full time at a CA's while also having my own portfolio of 20 odd clients that i look after at the weekends and evenings.
If my client base grows to say 50 - 100 then will need to make a decision whether to go on my own or try and manage them on a part time basis.
