Sarting Whilst employed?

[ashpack]

Hello,

My partner and I are starting a small business and we are not sure what we should do with regards to being legal.
We are both employed full time but will be able to dedicate our spare time to this.
It will be selling products online from our website and all the stock will be kept in our garage at home.

We will not personally be taking any profit from the business for the first year at least and any profits will be invested back into stock and the website.

We don't know if/who we should register with and if/what rates we need to pay.The fact we are already employed makes it somewhat mind boggling!

We are able to use 1 of our separate accounts to keep all the money away from our personal and will be able to keep track of all incoming and outgoing costs.

If somebody could shed some light on this that would be great.

Many Thanks

 

[Paul_Rosser]

First of all you both need to check your contracts with your current employers to ensure you are allowed to run another business.

 

[DavidAshdown]

Not 100% sure what your question is.
If you want to start in business you will need to register as self employed or start a limited company.
You have stated a number of facts. Always happy to help, but what point do you need clarification on ?

 

[ashpack]

Hey,

Thanks for your replies. Sorry if i was not clear. The Fact We are both employed is not an issue to our companies.

We are employed so how do we register as self employed? As i will be a silent partner in the company i do not want it to effect my current employment or have to register as self employed unless i have to, would this effect my tax in my current employment if I'm not making a profit?. This is what i don't really understand.

I have read that starting a limited company is not the best idea to start with so i wondered if we should register as a partnership or even one of us as a sole trader?

Thanks

 

[Scalloway]

How to register as self employed

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

Being employed as well as self employed is no problem, you merely need to complete both Employed and Self Employed pages of the tax return.

Investing money in stock does not reduce your profits. Any unsold stock at the end of the year is deducted from that year's costs and added to next year's.