Help starting up a business

[littlegreenfairy]

The more I think about this, the more I realise I'm out of my depth.

Now I've got to start looking at import duties and have no idea where to start.

So, if I'm brining stuff in from the states, what do I have to think about?

Also, I wont be making loads of money, I doubt I'll break the personal allowence before April, so what do I need to do registering as a business? I don't want to be self employed as that seems a little bit of a nightmare.

I also need a sound business plan but have no idea how to write one. I've found a gap in the market and it can be filled, its just how to go about it.

Any help gratefully received

[SystemParanoia]

the tsb offer a pretty good guide for writing a business plan... but it will only really give you the basic outline.

contact your local business link for a meeting, they will go over your plan with you and help you to tone it correctly for your target audience(s)

you could also look at contacting your local chamber of commerce

[Eric Mc]

If you are running a business, then you are Self Employed. There are no "ifs" or "buts".

You need to notify the Revenue that you have started trading within three months of the commencement date of the trading activity. If you do not expect to make business profits between now and 5 April 2008 over the tax and NI thresholds, then you can apply to be "Excepted" from having to pay your Class 2 Self Employed National Insurance contributions.

[japhilip]

littlegreenfairy said:

The more I think about this, the more I realise I'm out of my depth.

Now I've got to start looking at import duties and have no idea where to start.

So, if I'm brining stuff in from the states, what do I have to think about?

Also, I wont be making loads of money, I doubt I'll break the personal allowence before April, so what do I need to do registering as a business? I don't want to be self employed as that seems a little bit of a nightmare.

I also need a sound business plan but have no idea how to write one. I've found a gap in the market and it can be filled, its just how to go about it.

Any help gratefully received

You'll have to pay duty at 10% and VAT at 17.5% on all your imports as they pass through Customs. Not quite sure how it works in practice, but I think you have to pay before your goods will be released. VAT you can reclaim if you are VAT registered, although below a certain turnover you don't have to be.

Registering as self-employed and administering it is easy. You just need to keep proper records of every transaction. If you're still in full-time employment you can be self employed too, it's a doddle, and quite cheap. Ring your local Tax office, they'll tell you how to do it.

You could, instead, set up as a Limited Company, but it's more involved, requires more expensive accounting, but is better (IMO) if you're going to grow significantly.

HAve you any idea of approximate turnover (not profit) in the first year?

[Eric Mc]

At the level you seem to be operating at the moment, a limited company would be rather an "overkill" - although in the future it could be an option if trade takes off to any significant extent.

Are you currently "employed" at the moment as well i.e. are you being taxed under PAYE?

[DavidY]

japhilip said said:

You'll have to pay duty at 10%

Not true, Duty varies on a commodity code basis, some items have no duty others have a percentage figure.

Here may help:-

http://www.businesslink.gov.uk/bdotg/action/detail...

Most reistered carrier importers will apply the duty and VAT for you at the point of entry into the UK (eg FedEx, TNT, etc). Often you need to ensure that they use the correct commodity code.

If you are claiming back the VAT you need to claim it back off the HMRC C79 form (cross referenced to your purchase invoices) and not off the individual carrier invoices. VAT man pulled me up on this several years ago.

It's really not that complicated once you've done a few transactions.

davidy

Edited by DavidY on Tuesday 13th November 11:09

[Malh001]

If you are not going to be VAT registered you may need a TURN number from HMRC, details below. This helps with the importation process,if you don't have one, imports can be held up until you do and the import company can charge storage fees.



http://customs.hmrc.gov.uk/channelsPortalWebApp/ch...

[Malh001]

If you are importing from the states, as i do, try these WWW.FSMAC.COM

They offer very good rates as i have just found out, around 40% cheaper than our previous importer.

Don't worry about being out of your depth, its quite straight forward when you start. As you go along various things are bound to crop up but you deal with them at the time and there is an abundance of help online. The federation of small businesses offer good advice, lega cover, free banking etc.

Business plans are also straight forward. Set out your business idea,costs, projected markets/customers, projected turnover.

Depending on whether you require finance or not, i found the banks weren't really interested in the plan to any great depth.

[japhilip]

DavidY said:

japhilip said said:

You'll have to pay duty at 10%

Not true, Duty varies on a commodity code basis, some items have no duty others have a percentage figure.

Here may help:-

http://www.businesslink.gov.uk/bdotg/action/detail...

Most reistered carrier importers will apply the duty and VAT for you at the point of entry into the UK (eg FedEx, TNT, etc). Often you need to ensure that they use the correct commodity code.

If you are claiming back the VAT you need to claim it back off the HMRC C79 form (cross referenced to your purchase invoices) and not off the individual carrier invoices. VAT man pulled me up on this several years ago.

It's really not that complicated once you've done a few transactions.

davidy

Edited by DavidY on Tuesday 13th November 11:09

Interesting, I've learned something else today, thanks!

I assumed it was 10% because that was what we'd paid some time ago. Most of the stuff we do now is on Carnet, as we don't really sell much gear, just deal with rentals.

[Seany88]

Relevant to the title, any good books about the internal workings of a business? VAT and tax returns, how to keep good books and on top of things etc.

Thanks

[Eric Mc]

I'm sure there are quite a few self help type books that you can pick up in places like WH Smiths or even youtr local library. The imporatnt thing is to make sure that whatever you are reading is reasonably up to date. Tax and VAT legislation changes very frequently and even a one year old book will not be completely correct for the current rules.

[Gordon Brown]

Seany88 said:

Relevant to the title, any good books about the internal workings of a business? VAT and tax returns, how to keep good books and on top of things etc.

Thanks

I started with the Lloyds 'starting a business' guide which takes you through most things you need to do.