Starting a business
Discussion
Hi all,
I've recently been considering starting a handyman business up and have been doing lots of research into starting the company etc.
For various reasons I think a Ltd company is the way to go - am I best to find a local accountant to handle everything (company formation etc and then ongoing accounting/VAT/payroll requirements) so I can concentrate on the actual work?
How does it then work on a day to day basis? Do I just keep a record of all work/invoices etc and pass this on to the accountant? Or do I use software to track everything and then pass it on to the accountant? I'm just trying to understand the practical side of running a business and how it would work best.
Can/will an accountant do all of the required 'business running' administration?
Sorry if these are silly questions, I'm just trying to understand the bits its hard to find information about..! But I'd appreciate any advice
I've recently been considering starting a handyman business up and have been doing lots of research into starting the company etc.
For various reasons I think a Ltd company is the way to go - am I best to find a local accountant to handle everything (company formation etc and then ongoing accounting/VAT/payroll requirements) so I can concentrate on the actual work?
How does it then work on a day to day basis? Do I just keep a record of all work/invoices etc and pass this on to the accountant? Or do I use software to track everything and then pass it on to the accountant? I'm just trying to understand the practical side of running a business and how it would work best.
Can/will an accountant do all of the required 'business running' administration?
Sorry if these are silly questions, I'm just trying to understand the bits its hard to find information about..! But I'd appreciate any advice
Edited by jjcd on Thursday 23 February 11:50
Edited by jjcd on Thursday 23 February 12:53
Thank you both for your replies.
The reasoning behind going down the Ltd route was because the plan would be (once I have started to generate enough work) to take on a few employees gradually and I thought it would be easier to start out as Ltd rather than change part way. Though maybe this isn't the case..
And with regards to VAT and the £80k threshold - I'd calculated that through buying/supplying materials I would likely exceed this figure, especially when I take on a few employees.
Plenty to research and think about!
The reasoning behind going down the Ltd route was because the plan would be (once I have started to generate enough work) to take on a few employees gradually and I thought it would be easier to start out as Ltd rather than change part way. Though maybe this isn't the case..
And with regards to VAT and the £80k threshold - I'd calculated that through buying/supplying materials I would likely exceed this figure, especially when I take on a few employees.
Plenty to research and think about!
Eric - Okay that makes sense.. so perhaps working as a sole trader and getting customers to purchase direct to avoid me reaching the VAT threshold is the way to begin. Then at a later date maybe I'd have to go Ltd and charge VAT (when turnover ends up high enough). Though would it make more sense to go Ltd now, accepting the extra administration/cost, rather than change at a later date?
Trickywoo - Yes I know it probably sounds a bit over ambitious but I think it is possible to grow something to the level where there would be enough work for employees and thought perhaps I am better to plan ahead for this (though perhaps VAT would be a problem at this point and I'd become uncompetitive). But I do see what you mean, get something going first. Also I completely agree on your last point - I have done some work in this industry before and found being reliable/good at what you do stands you out from others and keeps clients coming back.
Trickywoo - Yes I know it probably sounds a bit over ambitious but I think it is possible to grow something to the level where there would be enough work for employees and thought perhaps I am better to plan ahead for this (though perhaps VAT would be a problem at this point and I'd become uncompetitive). But I do see what you mean, get something going first. Also I completely agree on your last point - I have done some work in this industry before and found being reliable/good at what you do stands you out from others and keeps clients coming back.
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