Want to start own business (advice needed plseee!!)

Hi everyone, I'm new to this site in hope for advice on starting my own business. I would like to sell computer products i.e. motherboards, RAM, CPU's etc on ebay and eventually my website I am building. I will be the only one so I will be a sole trader. I may have my brother work with me but that would be in the future. Can someone tell me, do I need to register a limited company for a registration number or can I just register as a sole trader?
My 2nd concern is, writing a business plan, I do not know my earnings for the year etc or what my turnover is because i havent started, so does anyone know what I would put? I have a few wholesalers I will buy from but they want to know how much my company earns before I can register and yet again i do not know yet.
I am currently on jobseekers allowance but want to come off that and start trading asap. Any help would be great.
Thank you in advance.

skorpeon

 

[adam]

Depending on how long you have been on JSA, you may be able to go on New Deal and get help while starting up.

You will also need to register with HMRC (The Inland Revenue) to tell them you are Self Employed or risk a £100 fine. No need to go LTD and it is probably not a good idea at the moment.

 

funny you say that, i am having my new deal interview friday (should have had it over a month ago). i want to start earning now. if i had enough to buy a few bits and pieces to sell, could i let inland revenue know and just start up after stopping my jobseekers allowance? is it that simple do you know or a lot more too it? I am eager to start thats all. so i can just register as self employed with inland revenue and will get a registration number?

thanx for response!

anymore info would be great

 

[bwglaw]

First, you will need to register as self-employed with HMRC. This I suspect may affect your benefits but I think DWP allow you to claim benefits for X number of weeks whilst self-employed. It may be a good idea to speak to your Job Centre about any help going self-employed. If your income is low you can claim Working Tax Credit.

As for registering as a Limited Company. It is not compulsory and whether you should set up as a Limited Company is a question for an Accountant. I suspect it may be a little too early for you.

It is not compulsory to have a business plan unless you plan to obtain some credit from a bank, who may ask for one.

Regarding the supplier. You are obviously considering to apply for credit, which is why they are asking for your business financial projections. You could tell them you are new and if they refuse you credit then it may be a good idea to buy as you go along with a small discount from the supplier. This will prevent you from accruing any debts at an early stage.

Hope this helps


Jonathan

 

so i can still receive my jobseekers allowance while i am starting up? is there any information on the internet to clarify this? i will only buy stock i can afford and sell it on for a profit. im glad to hear i dont have to register as a limited company. this information is very helpful thankyou. anything else you may think of would be great, especially to help me start sooner.

cheers

 

[bwglaw]

so i can still receive my jobseekers allowance while i am starting up? is there any information on the internet to clarify this?
cheers

As I said in response to your PM you need to check with the Job Centre. I think they allow 12 weeks or something. The rule may have changed.

If you are 18-30 you might wish to consider contacting Prince's Trust for a grant.

Jonathan

 

i tried the prince's trust and they said i wasnt able to get a grant because I have gcse's... dont know why...
i will contact the inland revenue tomorrow and also see what happens at my jsa interview friday for new deal.

thanx again

 

[cqueen]

Princes trust always seem to have an excuse not to give a grant. Someone I know of was turned down because he wasnt an ex-con! what a joke.

 

[Joyous]

As a sole trader in theory you can start trading today if you’re ready to go. The only registration to be done is with HMRC within three months of the end of the month that you start trading. You can do this in about 10 minutes over the phone via the self employed helpline (08459 15 45 15). As to how this will affect your benefits the Job Centre are the best people to advise you.

It’s worth having a look at the Revenue’s website as they have a wealth of information and advice for those considering self employment. Good places to start are here and here.

Regards

Joy