Starting up as self employed

Hi Linda, You use your business name (Linda's Shop), but the cheque book etc. will say Linda's name trading as Linda's Shop (this quite handy really as some of your customers will send cheques in YOUR name and they can still be cashed) You should sell you stock on at "cost" - but as to what cost you may need to speak to a financial advisor Yes. You should inform your insurance Co. You may well also need to get extra stock insurance (try the NMTF, they have good rates) Banks are all the same - legalised crooks! Try and get at least 18 months free business banking - I believe some people on here have said that the Abbey offer free B/B for life?? Also be careful to register your business within 3 months and be careful about telling people you have been doing it for a while. The IR are alwasys looking to claw a few £'s from anywhere! This is why I say be careful about transferring your existing stock in - if you have a lot it may get people asking a few questions (unless you have invoices etc.) You also have to be careful about the money YOU will receive for the stock (I think) but as I am not a financial person, I would suggest you get advice. Oh, and what have you been selling that has worked for you?
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Kind Regards,

Martin @ LTA Leisure Ltd

enquiries@lta-leisure.co.uk

I think martin makes some very good points. Re bank accounts the abbey national "free banking for ever" (or until the sale goes through im guessing!) is a postal one, and ideal for the micro business. For insurance - first stop should be your current insurer; they may well extend your policy for a small fee. I pay paltry amount extra on my policy to have my home business covered. It is less confusing should it come to a claim to have the one policy rather than several and often works out cheaper too. With your "pre trading" stock etc it might be easiest simply to declare your old ‘trading’ income. If you have not other income there might not even be any tax due, and therefore no penalties will arise. Speak to your accountant about this one as it can be rather delicate an issue. MYOB gets good user ratings although I haven’t used is myself. Regards,
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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

Oh, give up James - you make me sound almost sensible, reasonable and knowledgable - none of those have ever been said about me before :-) Linda, I have not used MYOB either, but we have just moved over from DO$H to QuickBooks (they have "custom" editions such as Retail etc) and have yet to have any complaints - other than there's too much you can do with it!! - and we use it to track our stock etc.
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Kind Regards,

Martin @ LTA Leisure Ltd

enquiries@lta-leisure.co.uk

Thanks Martin and James for the useful info. An eBay seller never divulges their successful sales secrets - they're closely guarded in case competitors get in on the act! Let's just say I sell a range of widgets which can be used by almost anybody in different applications [] Now I have more questions! 1. From the 1st May I started a simple Excel accounts system, logging payments in and out and I kept all invoices received. This was the main start of the business. Before then I really had only been selling mostly personal household items etc. If I register before the 1st August I could include all the transactions from 1st May. Could I just enter the amount in my accounts software as a lump sum or do I have to log all the individual payments in and out starting the 1st May? 2. When logging individual sales do I have to print an invoice for each sale and post it with the item or can I just email one if the customer asks for one? I suppose I could just email an invoice to each customer anyway - it would save on printer ink! 3. If I phone in the IR self employment NI details instead of posting the form will it be processed before 1st August? 4. I currently work full time (hoping to change that in the future) and from what I understand I do not need to disclose my self employed status to my employer unless stated in my contract. My contract only mentions that I musn't work for direct competitors and I'm not. The NI form has a section to fill in for employer and address. Will my employer be contacted or is this info just used for tax calculations? 5. The NI form also has a box asking 'What sort of self employed work do you do'. Suppliers also sometimes ask this question and I'm not quite sure what to put. The business is mail order via the internet. Is it called retail, mail order, or does it come under the general category that the products I sell fall within? Or how about 'internet mail order for widgets'? If all these questions are answered I'm sure I can register this week before the 1st August deadline and be a real business! Linda[]

Linda, (1) just log the income and expense totals to date (2) no great need to issue an invoice for "retail" under £100, but it is probably best to email one if you are trying to give off a company feel to your trading (3) if you phone that is a same day set up (4) They wont be told by the IR. and if they are, well you are just selling things on Ebay. (5) "Etailer" would do it, although it isnt a big deal Good luck with the widgets
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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