Need help deciding......

[Pulsar]

Hi,

I am planning to start retailing products online, but i would need to be a registered business to purchase these products.

I was thinking of setting up as a sole trader, can i do this online?
Also could you tell me the costs of I.E registering as a business,

This is my first business that i will be setting up and would welcome your advice,

Thanks

[Mattonella Tile Studio]

If you are going to trade as a sole trader you need to notify HMRC within 3 months of commencing. Not 100% sure if you can do this online but the forms to print off are certainly available from their website.

Costs the cost of a stamp/telephone call.

[Pulsar]

If you are going to trade as a sole trader you need to notify HMRC within 3 months of commencing. Not 100% sure if you can do this online but the forms to print off are certainly available from their website.

Costs the cost of a stamp/telephone call.

Thanks, i will have a look on HMRC's website, didnt think it would be that cheap. would being registered as a sole trade allow me to have an actual business name. sorry if its a simple question just not that sure on the whole registering process.

[Mattonella Tile Studio]

Yes and no. You don't have a separate entity such as Mattonella Tile Studio Ltd, which is its own 'person'. However, if Mattonella was my business as a sole trader, then it would legally be Mr D.P. trading as Mattonella Tile Studio.

So you could be Mr J Bloggs trading as Pulsar, for example.

[Blush]

If you are starting out as a soletrader, which most people do at first, give your local inland revenue a ring.It only takes about 5 minutes over the telephone to register self employed.Make sure you ask for them to send out your application to apply for exemption certificate in paying stamp if you expect to earn below the threshold, not sure of exact figure but it is under £5000.
Thats all you need to do, you don't actually need to register your business as such, it is just yourself you are registering.If you start as a limited company than you need to register but I doubt you will be looking into this just yet.

[Pulsar]

If you are starting out as a soletrader, which most people do at first, give your local inland revenue a ring.It only takes about 5 minutes over the telephone to register self employed.Make sure you ask for them to send out your application to apply for exemption certificate in paying stamp if you expect to earn below the threshold, not sure of exact figure but it is under £5000.
Thats all you need to do, you don't actually need to register your business as such, it is just yourself you are registering.If you start as a limited company than you need to register but I doubt you will be looking into this just yet.

Would i be affected as i have a part time job and am just on limit of not being taxed, would this be affected if i registered as self-employed?

Thanks for everyones input so far, your all very helpful.

[Mattonella Tile Studio]

If your combined income took you over the personal allowance, then you'd be taxed on the amount over the allowance.

[DavidT]

As a soletrader - the profit of the business would be a part of your total income... so being taxed on it depends on the profit you'd make.

It's not so much 'registering' as a soletrader, more just notifying HMRC. It's quite a simple process and you can pretty much run with any business name you like (I expect this can depend on trademarks etc - an area I am less familiar with).

The costs start increasing if you're looking at Ltd companies. Some possible tax benefits (there's a sticky thread in the accounting forums) but probably not worth it when you're just starting out, depending on the nature of the business.

David Toohey
The Accountants Circle (http://www.accountantscircle.co.uk/)
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