Starting up the right way?

[DeanCC]

Hi all,

My name is Dean and I'm here for some advice please.

I am currently in the process of starting up on my own and will be selling roughly 10 home made items, of which there will be multiples of each. I will predominantly be an Etsy seller and will do weekly local markets. I have no experience of being self employed and whilst I am very good at sourcing, pricing, designing, making and selling...I have no idea how to start up the right way.

1. Can I initially (to test the water) start selling on Etsy and at markets without being a registered business or sole trader? If so at what point would I need to register.
2. Presuming I dont need to register initially can I operate from a unused personal current account?
3. If I do have to register, can I use a personal current account, if all that goes in and out is business related or do I need a business account.

I have speculated that my takings would be £200 per week, of which, £120 would be profit. Extrapolate that out 52 weeks and that is £7280 profit from £10,400 revenue. So if this is my sole income, I would not be liable to pay income tax or NI is that correct?

With regards to profit...if I was to re invest £5000 of the profit throughout the year (weekly) in stock but did not make any further sales, would I be correct in saying that my annual profit would be £2280 even though I have chose to spend the rest of the profit on stock?

I know I am asking alot here but I would greatly appreciate the help.

Thank you

 

[Scalloway]

1. If you start to day you have until 5 October to register as a sole trader.

2. If you are a sole trader you can use any bank account you want, you and the business are one and the same. You just need to keep records of sales and expenses.

3. Your bank may request you to open a business bank account.

If your sole income is from your self employed business you will pay no tax on £7280. You will pay Class 2 NI though. Paying NI will preserve your right to certain Social Security benefits.