A few daft questions....
Discussion
Sorry guys, I'm not really sure what I should be asking (or who), so here are a few stupid questions, please be gentle and keep things simple.
What are the main differences between "self employed" and being employed as the only employee of a limited company which is owned by the employee. Is that known as "sole trader" or have I got things mixed up?
If I went down the way of the "limited company", what do I need in terms of accountant, business bank account, Public liability insurance etc, before I start trading? Do I need a solicitor?
Is there any advantage in using an "off the peg" company?
What questions should I be asking (and what pitfalls do I watch out for) in selecting a bank and accountant?
What sort of accounting software is most common in small businesses?
Is "Legal Expenses/IR35 insurance" really required, or are they just feeding on the fear factor?
VAT, do I need to register from day 1 of trading?
What fees/costs are likely to come my way, even before I start trading?
Looking from a "company" angle, is there any real difference between employing someone who is self employed or employing a limited company?
Regards,
Brian (and a Red 350i)
What are the main differences between "self employed" and being employed as the only employee of a limited company which is owned by the employee. Is that known as "sole trader" or have I got things mixed up?
If I went down the way of the "limited company", what do I need in terms of accountant, business bank account, Public liability insurance etc, before I start trading? Do I need a solicitor?
Is there any advantage in using an "off the peg" company?
What questions should I be asking (and what pitfalls do I watch out for) in selecting a bank and accountant?
What sort of accounting software is most common in small businesses?
Is "Legal Expenses/IR35 insurance" really required, or are they just feeding on the fear factor?
VAT, do I need to register from day 1 of trading?
What fees/costs are likely to come my way, even before I start trading?
Looking from a "company" angle, is there any real difference between employing someone who is self employed or employing a limited company?
Regards,
Brian (and a Red 350i)
Right I believe that:
1) Being self employed and not limited makes you a sole trader. Owning a limited company, whether you work for it or not, makes you a director of said company. Thats my understanding anyway!
2) To open a business bank account as a limited company they will probably ask to see confirmation of incorporation and your registered number from companies house. Accountant will help prepare accounts as required by companies house. I would recommend seeing a solicitor even if its only for a free 1 hour consultation to see if they have any suggestions.
3) Never used one so don't know I'm afraid.
4) Sage is quite common which I use but can be quite daunting. I think another common one is quickbooks.
5) Don't know anything about this.
6) You only register for VAT if you go over the threshold of £60,000 in a rolling 12 months period or from the day when you suspect you will go over the threshold in the next 12 months.
7) All your professional fees of accountants and solicitors if you use them, insurances, general office/equipment costs, advertising, stock (if you have any) and lots of other things probably!
8) Not at all if they do a good job. Prefer somebody VAT registered so I could reclaim it!
Hope that helps somewhat. No doubt I'll get corrected on some things!
ETA - Try www.ukbusinessforums.co.uk some really helpful people on there who can answer your questions as well.
1) Being self employed and not limited makes you a sole trader. Owning a limited company, whether you work for it or not, makes you a director of said company. Thats my understanding anyway!
2) To open a business bank account as a limited company they will probably ask to see confirmation of incorporation and your registered number from companies house. Accountant will help prepare accounts as required by companies house. I would recommend seeing a solicitor even if its only for a free 1 hour consultation to see if they have any suggestions.
3) Never used one so don't know I'm afraid.
4) Sage is quite common which I use but can be quite daunting. I think another common one is quickbooks.
5) Don't know anything about this.
6) You only register for VAT if you go over the threshold of £60,000 in a rolling 12 months period or from the day when you suspect you will go over the threshold in the next 12 months.
7) All your professional fees of accountants and solicitors if you use them, insurances, general office/equipment costs, advertising, stock (if you have any) and lots of other things probably!
8) Not at all if they do a good job. Prefer somebody VAT registered so I could reclaim it!
Hope that helps somewhat. No doubt I'll get corrected on some things!
ETA - Try www.ukbusinessforums.co.uk some really helpful people on there who can answer your questions as well.
Edited by amcphillips on Thursday 20th July 19:07
To Add to the above:
3) No real advantage in off the peg companies these days as you can set a ltd co up in a matter of hours now.
5) Legal Expenses/IR35 Cover is very important if you think what you're doing may be construed as being caught by IR35. Good info about this on the PCG website www.pcg.org.uk
6) Registration for VAT is mandatory above the threshold but you can register if your turnover will be below (or so i believe)
hope this helps
3) No real advantage in off the peg companies these days as you can set a ltd co up in a matter of hours now.
5) Legal Expenses/IR35 Cover is very important if you think what you're doing may be construed as being caught by IR35. Good info about this on the PCG website www.pcg.org.uk
6) Registration for VAT is mandatory above the threshold but you can register if your turnover will be below (or so i believe)
hope this helps
The Compulsory VAT registration threshold is now £61,000.
As has been mentioned, you can register for VAT even if your turnover is below this threshold. Being registered for VAT can be advantageous for businesses who deal with other VAT registered operations. It is a disadvantage if all or most of your customers are not VAT registered.
It is always worthwhile talking to an accountant BEFORE you embark on setting up your business as there are many, many points that will pop up in the conversation which you may not have thought of.
Why not e-mail me on my profile.
As has been mentioned, you can register for VAT even if your turnover is below this threshold. Being registered for VAT can be advantageous for businesses who deal with other VAT registered operations. It is a disadvantage if all or most of your customers are not VAT registered.
It is always worthwhile talking to an accountant BEFORE you embark on setting up your business as there are many, many points that will pop up in the conversation which you may not have thought of.
Why not e-mail me on my profile.
Thanks for the replies guys.
From your replies and "off forum" conversations I can now see things little clearer. There seems to be ample help (and in some cases financial assistance) designed specifically to get a new small business off the ground. Thanks Eric Mc in particular for advice on selecting accountants.
So now, moving forward, we have a newly formed "ltd" company, with a little money in the bank by virtue of a loan from one of the directors. The "company" now needs customers/clients, how do I find them?
The $64,000 question, what is the best way to market the company?
Briefly, I'm looking at IT Support/Consultancy, aimed at the small business with 10 employees or so. With the aim of moving them from the organic, no network, all pc's and OS different setup; to sensible, scalable and secure computing. Wouldn't want to get involved in the domestic market, the rewards are just not worth the pain.
I suppose, personal recommendation is by far the best (and probably the cheapest) method.
Has anyone had success using any of the following, which are in no particular order?
Local Chamber of Commerce
Networking generally
Business Link
Parish Magazine
Yellow Pages (or any other business pages directory)
Local Newspapers
Mail shot’s to target businesses
Website
Regards,
Brian (and a Red 350i)
From your replies and "off forum" conversations I can now see things little clearer. There seems to be ample help (and in some cases financial assistance) designed specifically to get a new small business off the ground. Thanks Eric Mc in particular for advice on selecting accountants.
So now, moving forward, we have a newly formed "ltd" company, with a little money in the bank by virtue of a loan from one of the directors. The "company" now needs customers/clients, how do I find them?
The $64,000 question, what is the best way to market the company?
Briefly, I'm looking at IT Support/Consultancy, aimed at the small business with 10 employees or so. With the aim of moving them from the organic, no network, all pc's and OS different setup; to sensible, scalable and secure computing. Wouldn't want to get involved in the domestic market, the rewards are just not worth the pain.
I suppose, personal recommendation is by far the best (and probably the cheapest) method.
Has anyone had success using any of the following, which are in no particular order?
Local Chamber of Commerce
Networking generally
Business Link
Parish Magazine
Yellow Pages (or any other business pages directory)
Local Newspapers
Mail shot’s to target businesses
Website
Regards,
Brian (and a Red 350i)
Marketing (all IMO and experience)
Good, Professional Website,
Mailshots, hand delivered initially to all the business units in your area
Business Link, for the networking
YOu have chosen a tough market to work in so I would say Marketing, Quality of service and Price are going to me key to the business.
After 3 years I would not go back, still tough and I now think you need to give it 4 to 5 year before any new company becomes fully successful and profitable.(blimey I am becoming one of those been there, done it, would not change it for employment people!!!)
Chris
Good, Professional Website,
Mailshots, hand delivered initially to all the business units in your area
Business Link, for the networking
YOu have chosen a tough market to work in so I would say Marketing, Quality of service and Price are going to me key to the business.
After 3 years I would not go back, still tough and I now think you need to give it 4 to 5 year before any new company becomes fully successful and profitable.(blimey I am becoming one of those been there, done it, would not change it for employment people!!!)
Chris
Gassing Station | Business | Top of Page | What's New | My Stuff