Some starting up advice please!

[twistarella]

Hello

This forum was recommended to me, so this is my first post - hello!

I was after some advice on setting up my business if you don't mind.

I am currently employed full-time and on maternity leave (but not earning anything as I'm on additional maternity leave). My end-goal is to be able to earn enough money from my own business (which is in a totally different area to my employers and therefore non-competing) so that I can eventually leave my employer.

If I build my business up slowly, maybe getting a couple of clients over the course of the next 6 months, can I see how things go and therefore not have to register as self-employed and just declare any additional income in my self-assessment form at the end of the tax year?

And if I take that route, should I keep a record of all incomings/outgoings?

Thanks (sorry if I sound like I don't know what I'm doing!!)

[integreatmedia]

Originally posted by twistarella
If I build my business up slowly, maybe getting a couple of clients over the course of the next 6 months, can I see how things go and therefore not have to register as self-employed and just declare any additional income in my self-assessment form at the end of the tax year?

And if I take that route, should I keep a record of all incomings/outgoings?

Firstly - hello and welcome!

Secondly, if you are working self-employed even on a part-time basis you MUST register as self-employed with HM Revenue and Customs. You are liable to a £100 fine if you don't do so within the first 3 months - and the process is very simple - think it took me less than 10 minutes on the phone.

Dependant on your earnings in self-employment you maybe about to get exemption from paying NI contributions, and therefore at the end of the tax period will only pay income tax on your profit - so registering as self employed is just letting the government know what you are doing! (and they like to know that! )

BusinessLink is a superb initial resource for many of the questions I think you will have about starting up: www.businesslink.gov.uk

[twistarella]

Thanks!

So, if have to register as self-employed, even if I'm not actually earning anything from my business just yet?

[MailOrderCo]

surely she does not have to register as self employed yet as she is employed and researching a new business, would she not just have to register if she quit her full time job and/or started to earn money from her business.

[nickt]

You have to register as soon as you setup your business, if you're not earning anything through it yet mention that as well when you register

[Rachael]

Twisterella I know who your are but it'll be out little secret lol (hope i've picked the right person now and not looking like a freak so I'll give you a keyword - fluffy??)

X

[twistarella]

Wooohooo! Yes 'tis me - fluffy indeed!

[twistarella]

Right, I just spoke to HM Revenue & Customs Self-Employed helpline and they said I don't need to register as self-employed until I actually start earning money from my business and even then I have 3 months from that date to do so.