what month of the year is best to declare a new business?

[homeriscool]

hi all, im getting to grips with my business and i am wondering when is the best time to start my gardening business. it is seasonal i know so it will be quiet from now until febuary. if i actually start the business up in febuary will i get a full 12 months without having to produce to the tax man? i dont want to start up a business now - make no profit from now until january and have to pay an accountant to tell me i have made no profit. am i on the right track? look forward to any help and advice. thanks in advance.

[Stretchy]

hi all, im getting to grips with my business and i am wondering when is the best time to start my gardening business. it is seasonal i know so it will be quiet from now until febuary. if i actually start the business up in febuary will i get a full 12 months without having to produce to the tax man? i dont want to start up a business now - make no profit from now until january and have to pay an accountant to tell me i have made no profit. am i on the right track? look forward to any help and advice. thanks in advance.

If you do it right you will make money every single day of the year. Start asap would be my advice.

[elainec100@cheapaccounting]

Are you thinking of setting up as a sole trader or limited company?

[homeriscool]

Are you thinking of setting up as a sole trader or limited company?

im starting sole trader :)

[MyAccountantOnline]

if i actually start the business up in febuary will i get a full 12 months without having to produce to the tax man?

Reagrdless of what accounting period you choose a tax return always goes to 5 April so if you started in February 2011 your first tax return will be to 5/4/11.

i dont want to start up a business now - make no profit from now until january and have to pay an accountant to tell me i have made no profit. am i on the right track?

But bear in mind if you use a good accountant they will claim all allowable expenses for you and if you have a tax adjusted loss it may be possible to obtain a tax refund for you:)

[elainec100@cheapaccounting]

OK well then your first self assessment (if you start now) will be 2010/ 2011 due to be filed by 31/01/2012.

[elainec100@cheapaccounting]

A few things to bear in mind:

Pre trading expenses - claim these & potentially make a loss. Offsets loss against other income - what have you been doing prior to starting this buisness?

Register with HMRC - see here:

http://www.franklyaccounts.co.uk/gettingsole1.php

Exemption from class 2 NI:

http://www.hmrc.gov.uk/forms/cf10.pdf

[robindunne]

Self employed losses can also be carried forward against any Class 4 NI obligation. Setting them again employed income in the current year will not produce any NI relief.

[MyAccountantOnline]

Self employed losses can also be carried forward against any Class 4 NI obligation. Setting them again employed income in the current year will not produce any NI relief.

Bear in mind that with a loss the OP could apply for class 2 NI exception (as per Elaines link)

[Anna Chandley]

Self employed losses can also be carried forward against any Class 4 NI obligation. Setting them again employed income in the current year will not produce any NI relief.


The losses can be carried forward for NI purposes even if they have been used against employed income in the current year.

Anna