Advice please - setting up small travel company

[Saumyaraju]

Hi There
Please can you help me with answers to a few questions
I have a full time job but i want to set up a small travel company under my self employed status. This company will perhaps only do two or three big trips a year like base camp, kilimanjaro, lapland liaising with third parties i.e. money transactions will often be sent abroad with vey little profits remaining.
1 - My profits are less than £5000 a year. Do i need to do a self assessment and should i file for tax returns?
2 - Must i declare this as my other job to my new employer
3 - Is it mandatory to invoice customers on payments?

Kind Regards
Sam

 

[David Griffiths]

1 Yes

2 Depends on your contract of employment

3 Not sure of any requirements of your industry, but for accounts purposes it's not mandatory provided that you keep records of income. However, I would suggest that it's good practice to give the customer a document with full details of costs etc and an invoice does this for you

 

[Saumyaraju]

Thanks David
Can i check that by filing for my returns will i be taxed on such small profits or is there a limit i should retain to avoid being taxed?
- should i also be registered at a tourism office as a small business?
- when i advertise my events, should i be using the ' The package travel, Package holidays and package tours regulations 1992'. Are you aware if this clause is allwoed to be used freely or is there a charge for this?

 

[David Griffiths]

Thanks David
Can i check that by filing for my returns will i be taxed on such small profits or is there a limit i should retain to avoid being taxed?

You are taxed on all profits. You have an annual personal allowance but that will have been used up against your full time job.

- should i also be registered at a tourism office as a small business?
- when i advertise my events, should i be using the ' The package travel, Package holidays and package tours regulations 1992'. Are you aware if this clause is allwoed to be used freely or is there a charge for this?

I can't answer those questions. I know that there are regularions that apply to tour operators, including registrations and bonds, but that's not my field. I do know that these registrations are compulsory and it is illegal to trade in the holiday field without them.

 

[Vectis]

Are you aware of ATOL and AITO?

Have you thought about insurance and bonding - the financial protection you'll need to provide to your clients?

You do know that tour companies, especially small ones, are failing on a regular basis? See... http://www.caa.co.uk/default.aspx?catid=1052&pagetype=87


I'm not trying to put you off, but you are asking some rather odd questions, not the usual ones a start up tour operator might ask.