Help!

[Ryan_9208]

hello,
basically, I am looking to start up my own business, basing most of it online.

I am 16, from Northern England, and have this idea for a business which is proving to interest quite a few people already.

One problem: I have no specific list of what I would be needing to pay each year for taxes & insurances.

I want to look more into that, and make sure I have it all listed down so I don't overlook something.
I spoke to Business Link, but obviously there are specific departments relating to each payment/tax, so I would be on the phone for hours before I find the right details I am looking for.

I know I want to have Indemnity Insurance and I need to have National Insurances and stuff.
But if Someone could outline the basic needs to me, that'd be great.

I am also looking into an accountant/consultant to go through things.

Thanks, Ryan

[maidofkent]

Hi Ryan

Once you start trading, you will have three months in which to register with HMRC as self-employed (assuming you're not going for a Limited Company - for that you'd need specialist advice).

You will have to pay NI at a weekly rate of £2.30, usually payable by Direct Debit from your bank.

Your tax will be calculated after your first year of trading, but will be 20% of your profits over £5,435.

Additionally, you will pay Class 4 National Insurance contributions on your profits, of 8%. If your profit is more than £40,040, you will pay 1% on the levels above this.

As far as Liability Insurance is concerned, that's a business expense, not related to National Insurance (sorry, I might have misunderstood you there?).

MoK

[Ryan_9208]

thanks for the help!

If I were to register as a Limited Company what else would be on the need-to-know list?

Or should I speak to an accountant about that?

Thanks Again,
Ryan

[maidofkent]

If you want a Limited Company you should consider it seriously only after professional advice.

There are plenty of people here who will guide you in the right direction, but there's a 'sticky' on the Accounts Forum which will help you, at least as a start.

MoK

[M-C Hoare]

business link have a really useful guide to starting up your own business which lists all the things you need to do and consider. I believe it is hard copy only so you may need to go in to see them to get it.
Marie

[Ryan_9208]

thanks!

i just spoke to a venture capitalist, who advised me on some various funds to get me started, they can't offer me direct funding since I don't already have a market to offer as incentive.

Although, now I have that knowledge and can try and work towards a goal.

My grandparents have money tied away in shares with other companies, and i don't think they'd like the idea of giving me over £10,000 to start up a business.

Does anyone know any reasonable venture capitalists who specialise in start-ups? :s

Thanks!
Ryan