Part time business

[Gvizil]

Hi Everyone,
I'm in the process of starting a part time business. I finally decided to start as a sole trader (seems to be the easiest way). That's about as far as I got with my decisions.
I'm not exactly sure how to set up as a sole trader, so was hoping someone can give me a step by step plan on process of setting up a buiness.
I've read so many things and I'm either very confused now or I have no idea...
Any information will be welcomed!
Thank you in advance for your help.

 

[Mark T Jones]

You set up a business by going out, getting customers and earning money

You become a sole trader essentially by letting HMRC know you are self employed

There will be a lot more, but it will very much depend on circumstances

 

[WaveJumper]

If your stumbling at this level is it really for you ?

Become a sole trader

Become a sole trader with HM Revenue and Customs - your legal responsibilities if you run a business as a self-employed sole trader.

www.gov.uk

 

[wayzgoose]

Buy stuff then sell it. Do stuff and get paid. Tell HMRC. Job done!

 

[BusterBloodvessel]

I think some of the comments are a little bit harsh above. Fair maybe But harsh.

I think this is the thing that confuses many people in terms of "setting up a business". If you are a sole trader, there is no legal "business" as such, to set up. You start to trade - whether that be buying things and selling things, or doing services (gardening, window cleaning etc) and you tell HMRC that you are doing so. You basically register with them, and then keep a record of your income and expenditure, and complete a form online at year end to tell them how much profit you made, and they will tell you how much tax you owe.

This is a really simplified explanation because there could be a myriad of other things to consider, which we simply don't know from your post - your current employment status, potential impact on benefits, expected turnover (and therefore whether you even need to register to begin with), not to mention what insurances you might need, marketing ideas, do's or donts. But yes, in terms of "setting up as a sole trader" the simple starting point is to tell HMRC.

There will be lots of help available to you on this forum but as is often recommended, try to break it down into focused questions about specific subjects, supplying as much background as possible. "How do I start a business" couldn't be a much bigger "how long is a piece of string" question.

 

[Mark James]

Hi Gvizil

What will your part time business be?

 

[fantheflames]

I think answering questions like this is part of what UKBF is all about. Registering as a sole trader is a very easy process. You can start your business first, as long as you're informing HMRC within the deadlines.

• Register for self-employment with HMRC.
• Choose a business name (if applicable) and register it.
• Keep track of your income and expenses for tax purposes.
• File a Self Assessment tax return annually.
  
  Best of luck!

 

[Newchodge]

I think answering questions like this is part of what UKBF is all about. Registering as a sole trader is a very easy process. You can start your business first, as long as you're informing HMRC within the deadlines.

• Register for self-employment with HMRC.
• Choose a business name (if applicable) and register it.
• Keep track of your income and expenses for tax purposes.
• File a Self Assessment tax return annually.
  
  Best of luck!

Register a business name where?

 

[fantheflames]

Register a business name where?

I was thinking registering your business name with Companies House, but ignore that one - that's when you register with HMRC.

 

[Newchodge]

I was thinking registering your business name with Companies House, but ignore that one - that's when you register with HMRC.

You register with Companies House when you incorporate a ltd company.