Just starting up

[A7788]

Hi all,

Been reading a lot on the forum, some great information! Thank you

I am starting up as a sole trader, have registered with HMRC but I have a some questions and need some advice.

I am currently in full time employment and want to start up part time in evenings and weekends then maybe cutting down my full time day's as I get busier (hopefully) until I can run my business full time.
I want to do it this way as I am starting up a computer services company, so I go to a customers home and fix issues, etc and because of this I won't have a lot of start up costs.
Is this the best way or has anyone else got any other advice of doing this?

Thank you in advance

 

[Northampton Janitorial]

You may find that many of your customers want you to do stuff in the day rather than evenings & weekends, especially retired folk or people working from home.

My advice - check out the competition, and advertise as if you are much bigger and better than them.

In terms of going to people's homes & fixing issues, have you worked out a pricing structure? You may be surprised how little you can make, or how little people are willing to pay for this service, and it also depends on your location.

Do you have any fall-back plan or any other source of income?

If you don't I would seriously think twice about doing this, and check with your permanent contract of employment to ensure you are not breaching it.

If money isn't a worry then just advertise big, quit your job and go for it - the pressure of having to make it work will spur you on to make the best of it.

That's my method anyway, and it worked for me!

 

[Hedgie]

Hi all,

Been reading a lot on the forum, some great information! Thank you

I am starting up as a sole trader, have registered with HMRC but I have a some questions and need some advice.

I am currently in full time employment and want to start up part time in evenings and weekends then maybe cutting down my full time day's as I get busier (hopefully) until I can run my business full time.
I want to do it this way as I am starting up a computer services company, so I go to a customers home and fix issues, etc and because of this I won't have a lot of start up costs.
Is this the best way or has anyone else got any other advice of doing this?

Thank you in advance

Hi and welcome to the forum. Nothing wrong with running the business on a part time basis alongside your full time job provided you dont let the business interfere with your job.

Your full time job will be your bread and butter and as such should be your main focus of attention, after all, if things don't work out with the business then at least you still have a job.

Having said that, many people on here have just given up their jobs and thrown themselves into business ventures with both feet.

Either way, good luck with your plans.

 

[Ding Dang Doo]

Nothing wrong with earning some extra money to supplement your main income. In the mean time you will be starting to build a small customer base, learning the ropes of the business by making the odd mistake, and learning by it. You will also be learning your pricing structure.

If I can make as suggestion?

Set goals.

If you wish to turn this into a full time business, then decide when this is going to happen. One year? Two years? Because otherwise there is more than a strong possibility you will be running a part time business for a very long time, or that the idea will just fizzle out into nothing through lack of interest.

If you set a definitive time for you to be leaving your now full time job, then it is up to you to make it happen within this time scale.

I wish you every bit of luck and success in your new venture.

Just remember, the harder you work at it, the luckier you will be!

Pete

 

[A7788]

Thank you all for the encouragement! Appreciate it.

I have another question, as I said before I am offering computing services and web and logo design - the computing part is under the following name structure: company1 computing and then the design part is under the following name structure: company1 design.
Now I will be offering the design services but a family member will actually be doing that work. I have registered as a sole trader and do not want my family member being a partner, etc.
Would the best possible way to do this be for the family member to also register as self employed and they set up their own company, like web and logo services or whatever and if and when I get an order I order the website from the family member?

That way the company name stays under my control as such and also the money side I can decide on what gets spent where without any interference?

Also on the above then, if I was the do as I said above and deal with the family member, in affect a different company and they weren't registered as self employed with the tax man would there be any comebacks on me if they get found out, so is there any checks I have to do etc?

Hope that makes sense, if not please let me know.

Thanks!

 

[MyAccountantOnline]

T
Now I will be offering the design services but a family member will actually be doing that work. I have registered as a sole trader and do not want my family member being a partner, etc.
Would the best possible way to do this be for the family member to also register as self employed and they set up their own company, like web and logo services or whatever and if and when I get an order I order the website from the family member?
Thanks!

So are you dealing with and invoicing the customer and then paying the other person to do the work?

 

[A7788]

So are you dealing with and invoicing the customer and then paying the other person to do the work?

Yes that is correct - I sell the services through my business but it would be the other person doing the work. Basically just selling the website and logo services with a mark up.

 

[MyAccountantOnline]

Yes that is correct - I sell the services through my business but it would be the other person doing the work. Basically just selling the website and logo services with a mark up.

I think you'd struggle to argue that wasnt employing this person, rather than engaging another self employed individual to undertake the work.

Have a read of this.

 

[A7788]

I think you'd struggle to argue that wasnt employing this person, rather than engaging another self employed individual to undertake the work.


Thank you, although I am a little confused by this. In my current line of work we sell products that another company make and provide, so we are a reseller. The employees in the company where we are a reseller for isn't classed as our employees, so why if I was just a reseller for web and logo design would the other person be classed as an employee?

 

[MyAccountantOnline]

I think you'd struggle to argue that wasnt employing this person, rather than engaging another self employed individual to undertake the work.


Thank you, although I am a little confused by this. In my current line of work we sell products that another company make and provide, so we are a reseller. The employees in the company where we are a reseller for isn't classed as our employees, so why if I was just a reseller for web and logo design would the other person be classed as an employee?

I cant comment on what your employers do as so many factors effect employment status.

But in your circumstances if in doubt you do need to take some proper paid for professional advice. The link to the HMRC website will help if you read it through. Do be careful with this it really provides easy pickings for HMRC - getting employment status wrong can be expensive.

 

[A7788]

I cant comment on what your employers do as so many factors effect employment status.

But in your circumstances if in doubt you do need to take some proper paid for professional advice. The link to the HMRC website will help if you read it through. Do be careful with this it really provides easy pickings for HMRC - getting employment status wrong can be expensive.

Thank you - I might just do that. Do appreciate the advise

 

[MyAccountantOnline]

Thank you - I might just do that. Do appreciate the advise

You are very welcome

 

[Ding Dang Doo]

Depending on whether you relative did work for other companies, or just you, could mean you would have to look at the section on IR35 on the HMRC website, as given in the previous the previous post...

HTH

Pete

 

[Small Biz Jessica]

Hi A7788,

If I'm right in understanding you're operating as a sole trader (not a company) and calling your business "Company1," it did occur to me that that might not be allowed. For example you can't legally use "Limited' in your business name if you're not a limited company. It looks like it might be OK though: http://www.nowletsgetstarted.co.uk/choosing_a_business_name.aspx

Although I wonder if there's a risk some of your customers might feel misled?

Good luck with your project meanwhile! I think your plan to start out in your spare time and see how it goes is great, it will give you a chance to learn the ropes and assess the rewards and the pitfalls.

All the best,

Jessica

 

[A7788]

Hello there, thank you for the reply. I just put company1 as I didn't want to mention the business name as of yet (maybe I should have put business name rather than company name). I will not have ltd, or limited or anything on the names, was just using it as an example to explain.

Regarding the customers, this is a valid point, and as I want to pride myself on customer service this is something I will make very clear from the start.

A few other questions I have been thinking of, is getting myself on sites like checkatrade and trustedtrader worth it? It is a lot of money, but at the same time if I get the return from them it will pay for itself in no time at all - anyone have any experience on this? I also ask this as there is no one else on either site that offers the same service as me in the area I am in.

Thank you again.

 

[A7788]

Hello there, thank you for the reply. I just put company1 as I didn't want to mention the business name as of yet (maybe I should have put business name rather than company name). I will not have ltd, or limited or anything on the names, was just using it as an example to explain.

Regarding the customers, this is a valid point, and as I want to pride myself on customer service this is something I will make very clear from the start.

A few other questions I have been thinking of, is getting myself on sites like checkatrade and trustedtrader worth it? It is a lot of money, but at the same time if I get the return from them it will pay for itself in no time at all - anyone have any experience on this? I also ask this as there is no one else on either site that offers the same service as me in the area I am in.

Thank you again.

Has no one used sites like these at all? :|