Advice Req - Part time business Start Up

[adamm19830]

Hello Everyone,

Im looking for some direction on where to start......

Myself and my Wife are both currently in full time work getting paid an annual salary for which our respective companies pay all of our national insurance and taxes.

Whilst both of us are working full time, we would like to start our own business that we can both work on in our spare time to make some extra money. We know there is a market for our business, but we just need some advice on where to start to make everthing official and legal.

I am currently thinking of going down the "partnership" route, unless for some reason somebody on here doesnt think that would be wise.

Our part time business has the potential to bring in around £5000 - £7000 profit in a year. Our long term view would be to expand the business and both work on it full time but for now we just want to set it up whilst we both still have full time jobs and see how our new business goes. Maybe in 1-2 years time we can think about taking our new business on full time.

Could anyone give us any advice on starting up our business based on the above, any recommendations? anything to look out for?
We have our own website domain already sorted, we have a web designer friend who will setup our website for free

We just need some further input on how to go about the "setting up business" side of things. There isnt much of a risk to get majorly in debt with our business which is why i think a partnership structure would be the path to choose.

Many Thanks.
Adam

 

[Scalloway]

If you form a partnership you will need to regiate with HMRC as self employed.

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

I take it there is no problem with your existing employer about setting up in business.

 

[adamm19830]

Hi, thanks for the reply. There is no problem with my current employer.
Can I register as self employed even if I'm still working full time with my current employer.?
If so, is registering as self employed my first step?
Thanks.

 

[Scalloway]

There is nothing to stop you being both employed and self employed. You will need to complete both Employed and Self Employed pages on your tax return.

You should register as self employed when you are about to make your first sale.

 

[Microsoft Business]

Hi Adam,

Your dilemma seems common amongst startups. Striking that work/life balance is crucial. Maintaining social relationships seem particularly difficult.

We have some advice if you would like to read and share: http://blogs.technet.com/b/smallbus...e-balance-when-working-on-a-new-start-up.aspx

Steve @ Microsoft

 

[adamm19830]

Thanks again.

Other than registering as self employed, what else to i need to do to set up the business i.e registering the company e.t.c?

Sorry if i sound dumb but reading all the government based websites on this confuses even more. I just want to know what i need to do for my situation in a simple step by step guide. Any help on this would be great.

Many thanks.

 

[Scalloway]

I am presuming you wish to form a partnership, ie two or more sole traders working together. You need to register as self employed and register the partnership. That is all you need to do. The link to register a partnership is here

http://www.hmrc.gov.uk/sa/parts-partners.htm#1

You should draw up a partnership agreement when you start. This will set ouit how work and profits are shared, and how to resolve disputes.

On the other hand you may be intending to set up a limited company. This is done through Companies House. In this case you do not need to register as self employed.

There is a lot more admin and legal work for a limited company, but on the profits you expect it may save you tax. The complexity of the work means that it is advisable to hire an accountant to help you.

IF you set up a limited company it is extremely advisable to draw up a shareholders agreement, on similar lines to a partnership agreement.

Companies House advise on setting up a limited company is here

http://www.companieshouse.gov.uk/infoAndGuide/companyRegistration.shtml

 

[adamm19830]

Thanks for the reply again.

Yes i am looking at a partnership with my wife. Purely because it seems a whole lot eaiser to deal with and less paperwork!

Im glad that all we need to do is register as self employed, i was worried there was a lot more involved.

Another question, when we register as self employed, is there somewhere in the form where we give them the name of our company?

Thanks

 

[Scalloway]

There is no legal requirement to register a non-limited company name.