TAX in start up

[WR]

Hi,
My best friend now start up their business - Fish and Chips Bar.
He are Polish nationality and he relocated UK last year.
Please give me advice whot sort of busines will be most suitable - sole trader or Ltd.

and what with VAT in that cases.

Regards
Radek

[email protected]

 

[autolycus]

There is no hard and fast answer as to whether a sole trader of a ltd company business will be best. Each has its advantages and disadvantages. For more info, see:

http://www.advice4businesses.co.uk/choosing_business_structure.shtml

It would be best if your friend spoke to an accountant to get specific advice for his situation.

Re VAT - you can voluntarily register for VAT at any time. You have to register once your turnover reaches, or is expected to reach, £60K per year.

 

[D & J BOOKKEEPING SER]

thats correct

im an accountant bookkeeper and i work from home

personally he should just go for a sole trader business because chip shops really arnt that profitable anyway

its not like they are going to be having a turnover of like 250,000 is it

just stay simple and go as a sole trader it is less complicated

who is doing there bookkepping work for them as this is essentially to be done every month and if it is not done properly it will cost lots to put right

if he wants here is my email address if he requires more help then just pm me [email protected]

 

[Alpha]

personally he should just go for a sole trader business because chip shops really arnt that profitable anyway

its not like they are going to be having a turnover of like 250,000 is it

This is not neccessarily true, they can be very profitable and some can turnover that amount.

The key is that they differentiate themselves from the competition.

They require good clean well lit premises, excellent customer service, a good range of quality food (Not neccessarily confining themselves to fish, chips and pies), and a clear message of what they provide to the customers (Hand written signs are a BIG No No NO!!)

You must have a clear vision of what you want to do with the business and how you can improve it (And how to get the funds if neccessary).

If all you do is take over a chip shop which is making marginal profit and run it in the same way then the result will be a foregone conclusion.

Bit off topic but more important to get it right.

I would also start off as a sole (excuse the pun) trader and see how things develop.

 

[Jayne]

I was just going to say Alan, for them to look up Harry Ramsden, he's a millionaire with his fish and chips :lol:

 

[D & J BOOKKEEPING SER]

its all got to do with the location of chip shop
to get the right profit

and it depends if there is much competion near by