Registering as a sole trader?

[hollsbolls]

Hi,

I wander if someone will be able to point me in the right direction. I am just starting up a little side line business creating craft work alongside my full time job. So its just something I will do on weekends and evenings. I have a company name that I would like to register so I can start buying things wholesale at trade price but i have no idea where i do that or whether i need to register as a sole trader, or just register the name, or register for tax?

Sorry this might sound so obvious but there is so much information out there on the internet. Im just a little confused on what is the right step for me.

Thanks for your help in advance.
Anna

 

[Anna Chandley]

Hi,

I wander if someone will be able to point me in the right direction. I am just starting up a little side line business creating craft work alongside my full time job. So its just something I will do on weekends and evenings. I have a company name that I would like to register so I can start buying things wholesale at trade price but i have no idea where i do that or whether i need to register as a sole trader, or just register the name, or register for tax?

Sorry this might sound so obvious but there is so much information out there on the internet. Im just a little confused on what is the right step for me.

Thanks for your help in advance.
Anna

Hello Anna

First you need to decide if you want to run the business as a sole trader or via a Ltd company. Have a look at the sticky post on the accounting forum - Sole trader vs Ltd company.

If you will be receiving only small amounts of income then a sole trader will probably be the route to take. If you expect to make a loss initially then as a sole trader this loss can be set against your employment income to reduce tax.

To register as a sole trader follow the instructions given on the HMRC site here. A sole trader can have a trading name but this is not registered anywhere apart from with HMRC.

Anna

 

[hollsbolls]

Thank you so much for your reply. I will register as a sole trader as I wont be making much money, more of a little side line business.

So thats all I need to do to get started? Im just worried about missing something important.

Thank you

 

[Dawn Lane]

Thank you so much for your reply. I will register as a sole trader as I wont be making much money, more of a little side line business.

So thats all I need to do to get started? Im just worried about missing something important.

Thank you

Take a look at Business Link's website, http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805, you will find loads of info on starting up as self employed/sole trader.

Dawn

 

[Brian1939]

All the best with your new business, good luck

 

[MrsF]

Quote "I can start buying things wholesale at trade price"

Just a thought if you don't already realise is that to have wholesale accounts to get trade prices you normally have to spend a minimum amount on each order. Sometimes for what you are suggesting it may be cheaper on Ebay!

Then you have the man from Trading Standards there is a hierarchy of responsibility starting with the manufacturer and filtering down to the retailer. Also, labelling must be very clear and testing of products should be rigorous. I know a great group of crafters if you want to pm me I shall put you in contact with them as they are full of useful information about settinfor getting onto things like Etsy/Craft shows etc

 

[scott321]

I am several businesses - but I don't see what that has to do with Ebay - we are talking stealth here not semantics. If all you are doing is saying 'Look ebay, I'm a business and I want to make an account' then go ahead.

 

[TODonnell]

My 2p: Just go ahead. Register with HMRC. Keep accurate and up-to-date records of expenses and income in a spreadsheet. You can get technical later if you start to make good money.