Oooh Look - A Tax Question ;)

[littlegreenfairy]

To the enlightened ones...

I'm looking at setting up a small business (and I'm talking on the really ickle side - just something to keep me busy out of lectures and give me some money as I get through it like water :S)

I realise I wont have to do the whole VAT thing (noooowhere near) and I'll pay NI contributions and income tax...but..seeing as I want to do it from home..what about business rates? And seeing as I can't technically have a business from home (its in the deeds :S) where do I stand??

I've got it on good authority that there are some people here who love tax questions comon then - show yourselves (and there are cookies on offer )

Cheers Chaps/Chapesses

[egomeister]

If your tenancy agreement prohibits running a business, could you not just register it somewhere else - parents maybe?

[littlegreenfairy]

egomeister said:

If your tenancy agreement prohibits running a business, could you not just register it somewhere else - parents maybe?

Ooh good point..I'll talk to them There are some rather strange clauses in the deeds - most of which I haven't the foggiest about - but I think the business one is so a business doesn't buy a load of the flats and knock down the interior walls and make one HUUUGEE office...

[egomeister]

Then again if you are only self employed then is it technically "a business" at all as there is no differentiation between you and the trading entity?

If you are running below the VAT threshold I presume you would not be going ltd?

[littlegreenfairy]

egomeister said:

Then again if you are only self employed then is it technically "a business" at all as there is no differentiation between you and the trading entity? If you are running below the VAT threshold I presume you would not be going ltd?

its me and me alone doing not much apart from wasting a few hours and getting a little financial gain from it no limited companies for me thanks (not for a few years atleast)

[Parrot of Doom]

Regarding VAT - bear in mind who your customers will be. If they're all VAT registered businesses themselves, then you should register anyway as you'll be able to make significant savings on your outgoings.

If its the general public, then not registering may be a good idea.

[leftie]

The council seem to be quite reasonable these days with more people working from home as long as you don't impose extra on services (e.g. refuge disposal, drainage) or cause problems to neighbours (visitors, deliveries, having signs up, parking commercial vehicles, storage in gardens, noise, smells etc) or try to charge parts of the council tax to the firm (risk you you geting hit for CGT too I understand).

I just keep a low profile and so do most of my neighbours who also work from home.

[princeperch]

littlegreenfairy said:

To the enlightened ones... I'm looking at setting up a small business (and I'm talking on the really ickle side - just something to keep me busy out of lectures and give me some money as I get through it like water :S) I realise I wont have to do the whole VAT thing (noooowhere near) and I'll pay NI contributions and income tax...but..seeing as I want to do it from home..what about business rates? And seeing as I can't technically have a business from home (its in the deeds :S) where do I stand?? I've got it on good authority that there are some people here who love tax questions comon then - show yourselves (and there are cookies on offer ) Cheers Chaps/Chapesses

I echo whats been said about tenancy agreements and university accom, I got "moved" to another university hall when a lorry load of high back leather chairs turned up to my hall of residence by mistake in the first year...

instead of the company sending them to the dispatch addys id given them, they sent them all to the billing addy...

[littlegreenfairy]

leftie said:

The council seem to be quite reasonable these days with more people working from home as long as you don't impose extra on services (e.g. refuge disposal, drainage) or cause problems to neighbours (visitors, deliveries, having signs up, parking commercial vehicles, storage in gardens, noise, smells etc) or try to charge parts of the council tax to the firm (risk you you geting hit for CGT too I understand). I just keep a low profile and so do most of my neighbours who also work from home.

Basically - all I'm doing is making greetings cards, wedding invitations and the such like. Nothing mindboggling (just haven't grown out of my pritt-stick and paper phase like most 5 year olds ) or putting any pressure on any council run services. Also bearing in mind that we have to pay a private contractor to take away our rubbish anyhow (well its in the management fee) I get the feeling I could be in the clear on this one. I'm really not looking at making much money - just do it as I find it quite theraputic.

[simpo two]

I've worked from home for 18 years. Well actually 10; I spent 8 on PH

As long as you don't inconvenience the neighbours, make loud noises or have artics delivering every week, I'm sure you'll be fine. Whether or not you go LTD or register for VAT, that's a separate thing.

You will also be able to claim 'Use of home for business' - but see your accountant/bookeeper about that. Don't forget to put a proportion of your car expenses through the books as well.

[littlegreenfairy]

simpo two said:

I've worked from home for 18 years. Well actually 10; I spent 8 on PH As long as you don't inconvenience the neighbours, make loud noises or have artics delivering every week, I'm sure you'll be fine. Whether or not you go LTD or register for VAT, that's a separate thing. You will also be able to claim 'Use of home for business' - but see your accountant/bookeeper about that. Don't forget to put a proportion of your car expenses through the books as well.

Ahh next on the list - find an accountant - I can't manage my own finances let alone something that the tax man might get whiff of

Thanks for all your help.