mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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Not just yet, Maybe this time next year but that doesnt stop me making plans
what do you need, so fr I have come up with
Transit, Lease = 62.00 + VAT per week
Corgi = £300 per year ( got that anyway )
Public Liability Insurance = £400 per year
Accountant = Not A Clue 
Advertising = Again Not A Clue
Tools = Got Them All
Wont really have to worry about premises at the beginning as there will only be 2 of us
is it better to be a LTD company than a sole trader and how do you get LTD status
and any other tips
[Edited on 08-11-2008 by mattk]
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Mase
Premium Member
Registered: 16th Sep 01
Location: Derbyshire
User status: Offline
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quote:
Originally posted by mattk
is it better to be a LTD company than a sole trader and how do you get LTD status
http://news.bbc.co.uk/1/hi/business/2939958.stm
Mase
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Mase
Premium Member
Registered: 16th Sep 01
Location: Derbyshire
User status: Offline
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http://www.hie.co.uk/article-0129.html Some info about going from sole trader to a limited company...
Mase
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Doldy
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Registered: 13th Mar 08
Location: Norwich
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Accountant your looking at least £500 for the year, depending on how much work you do yourself really. I done LOADS of work myself and had to pay him £500!!
Worth it though,!
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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Get Robbo on the case - he was really really useful when I was looking to set up my own business. in fact I've copied the U2U he sent me below:
"Right... sounds like you definately need some kind of vehicle for managing your new business.
Two options really... one is to run it as a sole trader.
This is where you run the business as normal and take out of it what you like in the form of 'drawings'. This would involve having a bank account in the name of the business.
You would then draw up a simple Profit & Loss account and any profit would be taxed as Schedule E income on a tax return and subject to Tax/NI at the normal rates in which you pay PAYE tax... via a Tax Return.
This is the informal route and in theory easiet but you would have no legal protection as such.
The other option is to set up a limited company. This can cost as little as £100 by purchasing a ready-made company from WH SMiths for example... the forms are all in there for you to fill out to rename the company and nominate yourself as a director.
In terms of yearly costs you are lookign at at least £300 ish for an accountant to look after your affairs.
You pay yourself a salary through that business, either as an actual salary (calculated at the end of the year by the accountant!) or in the form of drawings but now formalised as a dividend.
The key benefits to setting up a limited company is that you now enjoy limited liabilty... so your personal liability is limited to what you have put into the company (look it up on wikipedi aor sometign for more details ).
If you are genuine about this then I would always recommend a limited company as it isnt that expensive, ensures that everything is done by the book and looks nice and professional, in addition to limited liability
In both instances you can write off RELEVANT (note the use of the key word RELEVANT) expenses to the business (ie petrol going to shoots, depreciation, camera costs etc).
As a sole trader you'll pay the usual 22%/40% tax... as a company you are more liekly to pay 10%/20% tax (I forget the current rates but below £50k profits will be no more than 10%) and no NI
As a sole trader, if you make a loss then you get a tax refund of some of your employment tax As a Ltd company, you carry the losses forward and deduct them against future profits, thus saving you tax in future.
Ltd company is slightly more hassle, and you will probably need to inform your employer of what you are doing (due to public nature of director lists) but overall probably worth it
HTH"
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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OMG this is complicated, that above information is fantastic though
aPk did you start a business?
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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In the end, no I didn't but did a lot of looking in to it.
As it happens, its probably easier to keep the 'extra' work I do informal until I have more time to put into advertising etc.
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Whats complicated about above matt? Im 'studying' accountancy ( ) and enjoying my tax module, so if you want nay help explaining that I can read from a text book
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
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TBH go and see an acocuntant, as they can help you deal with all of the 'complicated' stuff so you dont have to - although its an added expense but its best to get it right. Once you've seen it done a few times you could start doing parts of it yourself.
Also lots of free places to go and get advice, such as business link and most banks will have new business advisors.
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AdZ9
Member
Registered: 14th Apr 06
User status: Offline
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Advertising/Branding side of it, well that parts easy mate 
Come to me, i'll design your branding and all advertising
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Sam
Moderator
Premium Member
Registered: 24th Dec 99
Location: West Midlands
User status: Offline
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quote:
Originally posted by aPk
As a sole trader you'll pay the usual 22%/40% tax... as a company you are more liekly to pay 10%/20% tax (I forget the current rates but below £50k profits will be no more than 10%) and no NI
You are still liable for NI, but each director of the company pays this, not "the company".
If you are a sole trader you will have to pay class 2 NICs at £2.30/week, and you will have to also pay class 4 NICs if your profits (NOT your turnover) are more than £5,435 per year - this is 8% of your profit per year, and 1% on profit over £40,040 per year...
http://www.hmrc.gov.uk/rates/nic.htm for more information.
[Edited on 10-11-2008 by Sam]
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ed
Member
Registered: 10th Sep 03
User status: Offline
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I know someone who does graphic design, can sort out printing and does websites if you need advertising
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Mike
Organiser: North West and North Wales
Premium Member
Registered: 20th May 06
Location: nr. Skipton, North Yorkshire
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Make sure you go to St Helens Chamber when you're starting up and get some monies off em.
We got £2k off em early on and we've just got Sage, an accounts package worth around £1100 with training and they're paying for it. 
You might not get that much, all depends on what outlay you've got, they mentioned the £2k figure we pretty much just had to produce £2k worth of receipts for stuff we needed to start up and we got the money.
You do have to make up a business plan which is supposed to be a pain in the arse but if you're getting a decent amount it's well worth it.
My mum got £800 when she set her business up but she didn't need much to start up. Still £800 to get you going tho
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
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Knew their were places you could get grants like that, didnt realise it was that easy!
Any more links/info on this?
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Mike
Organiser: North West and North Wales
Premium Member
Registered: 20th May 06
Location: nr. Skipton, North Yorkshire
User status: Offline
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I'm not sure how easy it is tbh, I've not really done anything towards it apart from a meeting discussing the business plan to make sure we were all on the same wave length.
Obviously St Helens chamber only covers new businesses in St Helens so you'd just need to find the local chamber of commerce and see if they run a similar scheme.
I know you have a few shops in different places and I'm not sure how that would work if you're thinking of grants towards new shops. St Helens chamber advertise grants for new companies so how they would look at expanding companies I don't know.
Obviously I don't know if that's what your plans are, I've just used something I do know about you as an example
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Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
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Nah it wouldnt be for that, infact it wouldnt be for anything really 
I just know from looking in the past that money for nothing tends to be extremely hard to come by - but this seems (slightly!) easier than that.
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Mike
Organiser: North West and North Wales
Premium Member
Registered: 20th May 06
Location: nr. Skipton, North Yorkshire
User status: Offline
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Yeah, they actually advertise on Wish FM that they give grants for new businesses. Yet there's so many people that seem to have never heard of them
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