New starter - advice appreciated

Discussion in 'Ecommerce Forum' started by D.G Holdings and Procurement, May 15, 2011.

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  1. D.G Holdings and Procurement

    D.G Holdings and Procurement UKBF Newcomer Free Member

    56 3
    Hi all,

    I am starting a new venture into a purely online drop-shipping business and i am after some help/advice/information.

    First off i will let you know where i am at:

    I have a website set up already with a secure shopping cart and this is already hosted so this area is already covered.

    I work a full time day job so i know i will have to register as a sole trader and self employed via the HMRC website.

    I also know i have to keep detailed accounts for the sake of the HMRC tax return.

    My questions are as follows:

    1) Will registering as self employed affect my full time employment and tax/NI status as this is PAYE

    2) If my business generates less than £70000 do i have to register for VAT?

    3) Is it necessary to seek out an accountant to keep and submit my tax returns?

    4) If i only make sales from time to time does this affect the status of me as a soletrader?

    I would really appreciate some help on the above and any other information that anyone can provide to point me in the right direction.

    Regards

    Daniel
     
    Posted: May 15, 2011 By: D.G Holdings and Procurement Member since: May 15, 2011
    #1
  2. D.G Holdings and Procurement

    D.G Holdings and Procurement UKBF Newcomer Free Member

    56 3
    Any and all input will be very appreciated, if anyone can shed some light on these issues i would be very greatful
     
    Posted: May 16, 2011 By: D.G Holdings and Procurement Member since: May 15, 2011
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  3. smo

    smo UKBF Ace Free Member

    2,094 336
    1) No, you can be both employed and self-employed, it just means you file a return yearly.

    2) No, under that level registration for VAT is optional.

    3) No, you can do it yourself, or employ an accountant.

    4) No, 1 sale a minute or 1 sale a year makes no odds.
     
    Posted: May 16, 2011 By: smo Member since: Apr 3, 2010
    #3
  4. D.G Holdings and Procurement

    D.G Holdings and Procurement UKBF Newcomer Free Member

    56 3
    Thanks for that :D,

    I will register as a SE sole trader and then take things as they come. I just want to know im doing things by the book.

    Also if i use a program such as TAS to keep my accounts with a monthly balance sheet would this be sufficient in completing a tax return
     
    Last edited: May 16, 2011
    Posted: May 16, 2011 By: D.G Holdings and Procurement Member since: May 15, 2011
    #4
  5. smo

    smo UKBF Ace Free Member

    2,094 336
    Registering with HMRC is your single most important undertaking and this will trigger things like your yearly tax return, just make sure you do this within the required time form commencement of trading (i belive its 3 months)
     
    Posted: May 16, 2011 By: smo Member since: Apr 3, 2010
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  6. D.G Holdings and Procurement

    D.G Holdings and Procurement UKBF Newcomer Free Member

    56 3
    Yes. Officially my shopping cart went live on the 12/05 so within the next 3 months i hope to have everything in place.

    Thank again for the help
     
    Posted: May 16, 2011 By: D.G Holdings and Procurement Member since: May 15, 2011
    #6
  7. D.G Holdings and Procurement

    D.G Holdings and Procurement UKBF Newcomer Free Member

    56 3
    As a further point:

    Once i have registerred as SE and i start trading is it necessary for me to have a business bank account?

    I have a paypal business verified account for the secure receipt of payments, this is linked to a credit card specifically for business purchase and also a singular access savings account held solely for receivables and payables for the business.

    Will this suffice as an initial start up banking structure?

    Regards
     
    Posted: May 16, 2011 By: D.G Holdings and Procurement Member since: May 15, 2011
    #7
  8. smo

    smo UKBF Ace Free Member

    2,094 336
    As self employed you and "the company" are the same legal entity, thus there are no requirements for seperate accounts.

    You can use a personal account, although apparently some banks object (not my personal experience but useful to be aware of).

    So in short yes the setup you have will do fine, seperate is best but not required.
     
    Posted: May 16, 2011 By: smo Member since: Apr 3, 2010
    #8
  9. STELADELMAR

    STELADELMAR UKBF Newcomer Free Member

    1 0
    I'm new in e-commerce. First I made a free wordpress blog to promote some e-boocks or tools for internet. I am a member of Club Asteria which helps members to start e-commerce by giving us to promote this tools and e-books for free. Like promoter I vill earn some money,I hope. I don't now if this is a good start. wHAT Did you know about Club Asteria? Give me an advice. Thanks a lot
     
    Posted: May 16, 2011 By: STELADELMAR Member since: May 16, 2011
    #9
  10. dannyg2325

    dannyg2325 UKBF Newcomer Free Member

    59 3
    Start your own thread, you might get answers if your not posting spam? :|



     
    Posted: May 16, 2011 By: dannyg2325 Member since: Apr 22, 2011
    #10
  11. JMRidley

    JMRidley UKBF Regular Full Member

    437 129
    You can use a personal bank account, however, a some banks offer free business banking for up to x years so it may be worth taking one of these offers up so that you can keep your personal and business finances separate - will make your accounting easier.
     
    Posted: May 17, 2011 By: JMRidley Member since: Nov 12, 2010
    #11
  12. D.G Holdings and Procurement

    D.G Holdings and Procurement UKBF Newcomer Free Member

    56 3
    Ok thank you for the help.

    I am going to register as SE sole trader this week but I am wondering, if I earn minimal profit can ia apply for exemption from class 2 NIC?
     
    Posted: May 17, 2011 By: D.G Holdings and Procurement Member since: May 15, 2011
    #12
  13. KateCB

    KateCB UKBF Ace Free Member

    2,262 536
    Yes, if you are drawing less than 5k from the business you can apply for expemtion from class 2 NI....
     
    Posted: May 19, 2011 By: KateCB Member since: May 11, 2006
    #13
  14. D.G Holdings and Procurement

    D.G Holdings and Procurement UKBF Newcomer Free Member

    56 3
    OK well i have applied online to become self employed and register as a sole trader, i am now awaiting for my UTR for the self assessment forms. I will get a CF10 filled in and sent off asap as being a startup i do not expect to exceed a turnover of more than £1000 in my first year.
     
    Posted: May 19, 2011 By: D.G Holdings and Procurement Member since: May 15, 2011
    #14
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