Assistance required

[Virtually9-5]

Hi I am just about to launch my virtual business, there are just a couple of things I am not sure about that I will need to know before I take on any enquiries.

1. The services I am offering are admin based project i.e. event planning, DTP etc - do I charge VAT on my invoices? I have checked other VPA sites but can not see that they do?

2. I am opperating the business after 4.30 as I work full time and want to grow the business before giving up my employment as I have committments and nervous to give up completely. I have been doing alot of work for friends and exbosses and its time I was paid! Do I need to do anything re tax, registered the company etc?? I have had my terms and conditions checked and set up the domain and paypal for payments but I want to keep cost minimal initally.

I am working on a project rate depending upon the complexity of the task.

Any help would be appreciated.

Sam :redface:

 

[SuffolkDesigns]

1) if you are VAT registered then you must charge VAT, if you are not VAT registered you must NOT charge VAT

 

[Virtually9-5]

do I have to be VAT registered - my husband says I wont earn enough, I would like to prove him wrong one day. I did some training last year for a contact he paid me 300 plus expenses, I issued an invoice and receipt....

I have tried busines link but they will only talk to me if I am a full blown business, I want to look professional and build the business, there is no one else in Harrogate offering the service but it is a traditional market.

 

[cjd]

You only pay VAT once you reach the VAT threshold, from memory that's about £60,000 ?? I suggest you ring the VAT office and ask for advice and leaflets, they are strangely very helpful.

You don't need to set up a company but any income you earn will be subject to personal taxation - again the tax office is very helpful.

 

[Vicky R]

I am not an accountant or a financial expert, but I can share with you what I know, in answer to your question...

You don't *have* to register for VAT until your business turnover hits the VAT threshold for the past twelve months. I think it's currently around £60,000 but you can check it out (and find lots more information) on the HMRC website (www.hmrc.gov.uk).

I am not sure why your Business Link turned you away because you're not a "full blown" business as they are there to support those in business and those thinking of starting out. Might be worth another try.

Good luck with Virtually 9-5.

Vicky

 

[bwglaw]

1. As others have said do not charge VAT if you are not VAT registered. VAT threshold is £61000, I believe.

2. Obtain advice whether it is beneficial for you to register for VAT voluntarily

3. Register as self-employed - again speak to an Accountant to establish what NIC you need to pay.

4. Check your Contract of Employment to see whether you can work over 48 hours per week as the case may be, and check if your full-time employment is in competition with your employer

Jonathan

 

[franbookkeeping&pay]

As Jonathan has said, you do need to register your self-employed business with HMRC.

This needs to be done within 3 months of starting the business, otherwise there will be a penalty.

HMRC will advise you about NIC contributions on the self-employed business.

HTH

 

[Shropshire Bogtrotter]

Hi Sam,

Can I suggest you may want to talk to an accountant? A good accountant will be able to advise you on all of the above questions (VAT, setting up a company, etc). As well as giving you the factual information, they will be able to advise you on the best solution for you based upon your specific needs.

I am a techie working for an accountancy practice, and the most common query we have from start-ups is "Should I set up a company?". There are pro's and con's for both cases, depending upon your plans for the future.

If you don't have an accountant, ask your friends to recommend one. A good accountant will give you a free initial one hour consultation, which should answer some of these questions.

And given the type of work you are offering, you may even be able to sell your services to the accountant!

HTH. Good luck with the new business.

Jon Stanton
Peters Elworthy & Moore