Starting up...

[Bradley Godden]

Hello, I am a 14 year old, Who has the initiative to start a Advertisement management and IT consultancy business.

Me and a Partner are considering taking the steps to becoming a partnership.

I have a deed of partnership set out and agreed.

but, i am the nominated partner.

What am i supposed to do with registering the business with HMRC?

Would they accept my age etc?

Thanks guys

 

[Scalloway]

The link to register with HMRC is here

https://www.gov.uk/new-business-register-for-tax

You are never too young to pay tax if you have taxable income. However at 14 you do not have the legal capacity to enter a contract.

Have you done a business plan yet?

 

[Bradley Godden]

well, thanks for your reply.

to answer your question straight to the point, no i havent compiled a business plan as to be honest with you, We aren't looking for any type of investment to get our name out there, since we already have local connections and referrals, but i don't want to start expanding without being registered, and i dont want to do it to late. any help?

 

[Scalloway]

If you started after 6 April this year HMRC will not penalise you as long as you register as self employed and register the partnership by October next year.

 

[Bradley Godden]

ok, so are you saying i can afford time to experiment with the business concept i have? and HMRC doesn't need to know until October 2016? so if termination occured to the business and of course no debts were outstanding, they don't need to know?

 

[StevensOnln1]

HMRC need to be told that you are running a business, regardless of when you tell them. You tell them on your tax return if the business ceased trading.

 

[Bradley Godden]

ok, so if i register as self employed today, as i am going to be the nominated partner, are there any banks that allow 14 year olds to open some form of business account. we have a deed of partnership set out, currently there is no intention of getting any kind of loan, due to the nature of our business.

We fully understand our liability, one last thing, if i were to set up as the nominated partner, do i register the business as soon as? regardless of age?

 

[boring-friday]

I wouldn't worry about HMRC until you make some money, start thinking about it when you're making a few £100 per month.

Doubt you can open a business bank, just use a personal one and keep it seperate

 

[Scalloway]

I have just had a look at opening bank accounts. If you are under 16 it would appear that you need an adult to accompany you if you want to open a personal account. As I said in an earlier post you are under the age to be legally enter into a contract so I would suggest you get a responsible adult to help you with this business.

 

[Bradley Godden]

ok, we have switched over now, he is now the nominated partner.

But, we have been struck with the national insurance number field.
what are we supposed to do with this, since you normally get sent this when your 16.

 

[Chris Ashdown]

With all due respect a consultancy requires a expert in that field to be able to advise, yet you do not seem to understand the basics of business

A business plan is about your company and whilst it may be used to get credit or investors it all about you and your team, analysing how you will do business, what things you may have to overcome, who and how will you sell yourselves and what is your planned market area, who your competitors are and most importantly your cash flow projections so you know in advance when your cash will run out or not

As you are unable to make contracts I assume your co-partner is of legal age so they can make all the contracts

 

[Bradley Godden]

Just because i dont want to publish a business plan to a local forum doesn't mean one isnt being compiled. I was just stating that i am in no need of looking at a financial investment.

i feel you were trying to de-moralise us with your statement above with minimal information.

please, don't do that, you dont have any idea of our design capabilites, so why say we cant fulfill the design field when you havent even seen them?

 

[Bradley Godden]

can i get more help on this? upon trying to register the business, we have come across the fact that we must insert out national insurance number. The fact that we are under 16 aswell, what do we have to do now?

 

[Scalloway]

Although you don't pay NI until you are 16 your NI number will have been issued when your birth was registered. I understand it may be noted on your birth certificate.

 

[StevensOnln1]

You could try calling the National Insurance Numbers helpline.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-numbers

 

[Bradley Godden]

so, my conclusion is that i am currently faced with the hmrc page about applying for partnership.
what do i actually do for my national insurance number? Im not too sure if it is on my birth certificate, but i shall check.

 

[GraemeL]

i feel you were trying to de-moralise us with your statement above with minimal information.

I am sure you are quite wrong. You are on a business forum and most members have years of real hard nosed experience. Every bit of advice on here is valuable to you - take it as a positive - even advice that you don't feel is right for you. And don't be critical of those who are trying to help you, even 'don't do it' advice is helpful advice. Up to you if you take it or not.

 

[Bradley Godden]

ok. Let me get things straight here. Giving credit where credit is due, you are all helpful to me.

But no one has answered my question. I will re-establish it.

"How can a 14 year old, as nominated partner set up a partnership business with HMRC".

That is simply all i need to know, nothing more, nothing less. Thank you.

 

[Bradley Godden]

we have been faced with the "Insurance Number" field, so what can we do about it?

 

[StevensOnln1]

Call HMRC like I suggested earlier and ask them how to proceed.

 

[UK Contractor Accountant]

Print of SA400 & SA401 and fill in accordingly. On the SA401 where it asks for NI number leave blank and then write in the white space box why you do not have a NI Number (under16 etc?).

Once completed post forms of to HMRC at the address shown on the forms.

Google SA401 & SA400 and it should come up with the .GOV website

 

[Chris Ashdown]

Just because i dont want to publish a business plan to a local forum doesn't mean one isnt being compiled. I was just stating that i am in no need of looking at a financial investment.

i feel you were trying to de-moralise us with your statement above with minimal information.

please, don't do that, you dont have any idea of our design capabilites, so why say we cant fulfill the design field when you havent even seen them?

I never suggested you publish a business plan , I just pointed out making one would be for your own benefit

I also made the point that a consultant is a person you go to for advice normally in a selected field of expertise, there are normally other titles that can be used and in most it and designer fields I would suggest designer or similar

If you ask for advice on a forum you do not always get the answers limited to want you ask

 

[wesaving]

OP is lucky to get anyones time on here, seems to have a bit of an attitude issue and wants everything for nothing

 

[MOIC]

OP, have either of your parents offered any advice or guidance?

You have to understand what you are getting involved in. (From your posts it seems you don't).

It might be an idea, as you want to enter into a legal partnership and business, you seek professional help from an accountant as well as a solicitor, as to what is fully required, assistance with filling out forms, opening bank accounts, understanding your legal obligations and how the partnership may be affected in the future.

It may not be as simple as you think.

 

[ethical PR]

Bradley - well done at 14 for thinking of starting up your own business and for coming here to ask for advice. Partnerships even for the most experienced of business people can be fraught with difficulties, so before looking at this model do get some advice, particularly as both of you are under the legal age where you can sign contracts/set up a legal partnership.

Have you tried talking to the Prince's Trust about your plans? And getting advice from the business studies teachers at your school? They should be able to signpost you to others who can help.

Also try here http://www.young-enterprise.org.uk/?gclid=CLjEhqDm2MkCFQs8GwodPC8ORg

As mentioned by others do involve your parents or other family members/friends who might have relevant experience.

My office in China - I'm not sure pointing a 14 year old in the direction of lawyers and accountants who they are unlikely to be able to afford or sign a contract with to instruct them is terribly helpful.

 

[MOIC]

My office in China - I'm not sure pointing a 14 year old in the direction of lawyers and accountants who they are unlikely to be able to afford or sign a contract with to instruct them is terribly helpful.

That was my point.

They need to understand the legalities of where they stand now, as well as the future.

By the fact that they are unlikely to be able to afford legal advice or sign a contract for a partnership, is my way of diplomatically explaining to them the steps which need to be taken before agreeing a "partnership" without knowing their full responsibilities now and in the future.

It may sound simple, but even to experienced professionals and businesses, partnerships need to be executed correctly, especially at the inception stage.

In short, there are legal constraints.

When a 14 year old wants to start a business and enter a partnership, they have to be aware of what awaits them. most are not.

 

[ethical PR]

I do understand - I still think it's better to direct them to accessible resources such at The Prince's Trust and Young Enterprise set up to help young people wanting to go into business.

 

[MOIC]

I do understand - I still think it's better to direct them to accessible resources such at The Prince's Trust and Young Enterprise set up to help young people wanting to go into business.

Not when they are planning a partnership.

 

[ethical PR]

Why would that make a difference? - both organisations I mentioned can advise them on partnership issues.

 

[MOIC]

Why would that make a difference? - both organisations I mentioned can advise them on partnership issues.

Who said they couldn't?

They will need legal advice and need to sign a legal contract to effect a partnership, which according to the OP, is what they want to do and what this thread is related to, a partnership.