Business rates

The business rates may or may no be included in the rent. You will need to ask them, most serviced offices will be inclusive.

Tax - if you are going to be a limited company (as it sounds from your mention of a registered office) then it is rather complex and will depend on your other earnings and how much money you take out of the limited company, and how you take it out. Companies broadly pay tax at 19%. As a basic rate tax payer you pay no more withdrawing dividends, you pay an awful lot taking out a salary. As a higher rate tax payer the picutre changes. You do also have to take into account VAT if you are registered.

Well before setting up your company make sure you know what you are getting into in terms of how to form the company (ie participants, no. of shares etc) and also more cruicially if this is the correct business structure for you. Many people find starting as a sole trader more beneficial for testing the business model as this is very lightly regulated compared to limited companies. It depends on your individual circumstances what will be best for you. I know it sounds biased but you will need an accountant to help you run a limited company, so speak to one (or several) now well before you have formed the company to ensure this is the sensible thing to do. Mistakes with sole trades can be largely sorted out later on - with a company you need to sort things out correctly in advance.

Hope this helps.

Regards,

------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

How do I go about setting up as a sole trader? How am I effected with Tax/Business rates if I do?

Also i would like to start trader round my current job (For now anyway) how does this effect my tax?

Thanks

To register as a sole trader you would contact the HMCE within 3 months of starting out:

http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.shtml

You can be a sole trader and an employee at the same time. For some general background about being a sole trader have a look at the main sections of this site and the Business Link website.

The tax position is that you are taxed at between 22% and 41% of your profits, depending on your earnings from both your sole trade and your current earnings. This is paid annually, or twice a year as part fo the self assessment tax system. Again have a look at the business link website for some general background about the system.

It is important that you work out what the best structure is before deciding which way to go.

Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT