Ways of advertising..

[kengurinka]

Hello business people,
After lots of research I´ve remembered about this forum. I´d like to give a self-employment a GO! Just need a few advices from professionals.
As I found that selling services is easier for me than selling goods, I´ve decided to set up household and garden assistance business (the real business name is secret at the moment, I´d be sole trader).
1. When doing self-assesment - what proffesion would I put I do?
Considering I am sort of multi-task (gardening, house cleaning, errands, even basic admin. duties are included in my advert). The point is that I don´t wish to register more than 1 business if you see what I mean.
2. What do you think is the best way of advertising, that would catch lots of interest?
I´ve found social media quite useless really (specially when I don´t wish my FB friends to see my tryings, until the business is up and running). I´ve already had 1 lovely client from gumtree, which earned me £110 so at least it was worth to pay a few quid for the advert. But that is certainly not enough, to rely on gumtree. I´ve just ordered business cards from vistaprint. I was trying to set up a FREE webpage as well, but it doesn´t look that professional when I can´t have customized page name, although I am not willing to pay for a proper website because I believe there are more efficient and cheaper ways to make myslef ´visible´. I Don´t like email boxes bombarding idea, too. SO I am wondering about how else to catch attention.
3. Say I register next month (June2015) saying that I´ve started my business in May2015 - Is that right that I should do my first self-assesment in January17? I was studying a lot about this, but I am still not 100% sure.

Thanks for any reply

Kind regards
Misha

 

[Mitch3473]

As far as I know your name is really all you need if you are self employed although you could put a T/A ( trading as ) in the title.
As for advertising I would use leaflets in that kind of work, door to door, thousands of them, delivering maybe 500 / week and a few around any where you are working. An 'A' board outside with a clear and concise message.
I would however try to concentrate on one or two specific areas rather than casting a large net. It gets confusing and doesn't give potential customers much confidance. But if you offered Garden maintainance / driveway and gutter cleaning. Then you'll get two bites of the cherry Just my two pennyworth, I'm sure others will chip in.

 

[Feldon]

Maybe try to specialise in one or two services, as for advertising,

Leaflets, response rate around 0.2% - 0.4% as a rough guide, i would initially try to do at least 5K a month at least. Soloprint do really cheap leaflets £57 double sided A5 or £47 for 5,000 Postcard size.

Parish mags
Social media, takes time and don't try to sell but engage people
Networking, 4Networking is a nice easy networking group and you are not pressurized to promote other businesses.
Google Adwords
Try to avoid Gumtree and Facebook as they attract those who want something for nothing.

 

[Annoying Donkey]

Considering I am sort of multi-task (gardening, house cleaning, errands, even basic admin. duties are included in my advert).

I would focus your ads more. Separate them out into individual ads for each task.

What do you think is the best way of advertising, that would catch lots of interest?

The best way to generate business fast is to find those who already reach your audience.
For example, for house cleaning you might connect up with a window cleaner and offer a promotion to their clients, e.g. one room cleaned free, 25% off for an annual subscription. Maybe offer profit share/commission with window cleaner, to encourage them to promote you.
Contact any other house cleaners advertising, especially large outfits, and offer to take any work they don't want, jobs too small, out of area, too busy, or similar. Offer a commission/referral fee on every sale.
Once you have a foot in the door, then drop leaflets for your other services.

 

[The Byre]

Wot WeblinkPlus said.

Stay away from Vista Print and use a proper printer. As for your points -

1. Eternal optimist!

2. Flyers! Lots of 'em!

3. Ask HMRC and use the services of an accountant. The UK has the most convoluted tax laws on Planet Earth (even worse than the US and they have federal, state and county taxes!) so trust me, use an accountant.

 

[kengurinka]

Thanks for your input guys. Wow I am bit surprised you advicing me to distribute thousands of leaflets. I am worried that the response rate could be high (you never know ) and then I´d have not enough time for all potential customers. I like the idea about ´partnering´with other businesses.
I forgot to mention I´ve ordered magnetic car stickers from vistaprint, too - I love that idea, just hope I am not breaking any law having them on my car and not having a business car insurance?

Try to avoid Gumtree and Facebook as they attract those who want something for nothing.

Yeah, that´s the trouble there are people everywhere wanting something for nothing..specially on FB.

3. Ask HMRC and use the services of an accountant. The UK has the most convoluted tax laws on Planet Earth (even worse than the US and they have federal, state and county taxes!) so trust me, use an accountant.

I don´t know I believe I could do it myself, as sole trader I was told Excel is all I need and I plan to use ´paper accountancy´ too. Just need to study more. And need someone from here to answer my 3rd question.
Thanks again, and I´m looking forward for another answers.
M

 

[ethical PR]

I wouldn't worry about being inundated if you do a leaflet drop - response rates tend to be 1-3 per cent for un~targeted direct mail.

Why don't you give the HMRC a call to answer your third question.

 

[flomigo]

Some very good point here, i would recommend spending a bit more on higher quality leaflets from a different company as Vista Print don't have the greatest reputation. Good luck with your business!

 

[LowPrices.uk]

Re 1, just put something like General House Maintenance and Support.

You aren't registering a business when stating this on self-assessment, you are just telling them roughly what you do.

 

[kengurinka]

Thaaaanks The thing about 3rd question is, that I´ve thought that it is plenty of self- employed here, that know exactly how it works. I thought that I´d get faster answer here than trying to call HMRC for half of the day. But I´ll keep trying.

 

[The Byre]

I was told Excel is all I need and I plan to use ´paper accountancy´ too. Just need to study more.

You wish!

There are pleanty of cheap and easy bookkeeping programmes you can buy and our 'books' tell me that for a small business, 'Simply Books' would be a good place to start.

As a sole trader, a local accountant who is themselves a sole trader would be the obvious answer, as these people tend to be cheaper, nearly always (as for as I can tell) under £500 p.a., and you will save more than that sum as a result.

There are two good reasons for using an accountant -

1. HMRC are unlikely to question or seek to audit accounts that are conventionally laid out and are coming from a reputable accountancy practice. DIY accounting is for HMRC a red rag to a bull!

2. The modest sum of money that you spend will be repaid to you many times. Just knowing how to accumulate additional pension rights without spending any extra money is worth THOUSANDS! (And that's just one wrinkle out of God-knows how many that you need an accountant to do for you!)

Put it this way - our books are done by people with degrees in business economics and business studies. Clever people with experience! But at the end of the year, they take the books to the accountancy company.

If I look at a person who tells me that they can muddle through without an accountant, I know that I am looking at an idiot!

 

[MyAccountantOnline]

Thaaaanks The thing about 3rd question is, that I´ve thought that it is plenty of self- employed here, that know exactly how it works. I thought that I´d get faster answer here than trying to call HMRC for half of the day. But I´ll keep trying.

Misha can I ask why a sole trader?

Have you considered a limited company?

It's really important to get the structure of your business correct when you start - getting in wrong can mean you end up paying significant amounts of unnecessary tax.

I see it so often, people often appoint an accountant far to late as they've tried to save accountancy fees when starting up.

Spending a few hundred pounds on proper professional advice when you start can save so much more.

 

[MyAccountantOnline]

...
3. Say I register next month (June2015) saying that I´ve started my business in May2015 - Is that right that I should do my first self-assesment in January17? I was studying a lot about this, but I am still not 100% sure.

If you commence in business this month as a sole trader you will need to declare the income on a Self Assessment tax return for the tax year to 5 April 2016.

The deadline date for submitting a Self Assessment tax return for the year to 5 April 2016 to HMRC will be 31 January 2017.

 

[kengurinka]

Have you considered a limited company?

Hi, I´ve thought that being a sole trader is more simple. I don´t plan to employ anyone, or be in any sort of partnership, hovever I would consider being a contractor if offered. I would like to use personal bank account for my business - I know about its pros and cons. I´ve just started looking for a local accountant to have an initial chat about setting up my business, however, I am i close relation with one (s.e. for years) sole trader builder, and he only uses excel, has no business bank account and is not using an acountant, he doesn´t see the point of me having an accountant when I only take (rather small) payments in cash from my customers and only have (rather)small expenses. BUT the reason I am here, is to listen all of you and consider every advice. You doing great job that I appreciate very much!

 

[MyAccountantOnline]

Hi, I´ve thought that being a sole trader is more simple. I don´t plan to employ anyone, or be in any sort of partnership, hovever I would consider being a contractor if offered. I would like to use personal bank account for my business - I know about its pros and cons. I´ve just started looking for a local accountant to have an initial chat about setting up my business, however, I am i close relation with one (s.e. for years) sole trader builder, and he only uses excel, has no business bank account and is not using an acountant, he doesn´t see the point of me having an accountant when I only take (rather small) payments in cash from my customers and only have (rather)small expenses. BUT the reason I am here, is to listen all of you and consider every advice. You doing great job that I appreciate very much!

The accounts and tax are less complex for a soletrader but trading via a company can give some significant tax savings. It doesnt for everyone, but it's really important you get some proper specific professional advice based on your own circumstances to see which is best for you.

Your relative who is a builder may just find if he was to have an accountant review his tax affairs that he could make some significant savings

As an accountant who has been in this profession for a very long time, looking after new and small businesses, my advice to you is to get proper advice from the start, use a decent accounting package for business records and use a separate business bank account - it'll save you money and hassle in the long term.

Good luck with the new business

 

[kengurinka]

Your relative who is a builder may just find if he was to have an accountant review his tax affairs that he could make some significant savings

Excuse the ´silly´ question, but how would him/me save on tax? I either pay tax on any income above current treshold, or don´t pay when I am under/within treshold. I feel I still haven´t got enough information I need, but I am still studying, promise.

 

[MyAccountantOnline]

Excuse the ´silly´ question, but how would him/me save on tax? I either pay tax on any income above current treshold, or don´t pay when I am under/within treshold. I feel I still haven´t got enough information I need, but I am still studying, promise.

Not a silly question at all it's actually generally National Insurance which is the biggest saving; as a self employed person you'll pay class 2 and 4 NI a company doesn't.

You can also structure the way you extract money from a company making it more tax efficient dividends can be tax free depending on how much you pay.

A company also only pays 20% tax on its profits it has no higher rate band like you.

 

[Christine Hough]

I have just been looking for a gardener and as always my first port of call is Google. So I would say always get a decent (not expensive) website and maybe set aside something for google adwords. They show to people actually looking for your services. At least get on google maps with a pin which involves getting a google plus account. But you will need a helping hand if you have not done this before to avoid wasting money.

Leaflets are good if you are throwing something new into people's minds such as '
you can get all this done for £xxx'
'Its easier than you think
A second pair of hands who will do all these jobs ....
Special spring tidy up offer
After school holiday 'autumn revive'
Time to forward the list of jobs to me from curtains to cabinets.
New baby on the way? we help make your dream nursery.

 

[justintime]

Hi, I´ve thought that being a sole trader is more simple. I don´t plan to employ anyone, or be in any sort of partnership, hovever I would consider being a contractor if offered. I would like to use personal bank account for my business - I know about its pros and cons. I´ve just started looking for a local accountant to have an initial chat about setting up my business, however, I am i close relation with one (s.e. for years) sole trader builder, and he only uses excel, has no business bank account and is not using an acountant, he doesn´t see the point of me having an accountant when I only take (rather small) payments in cash from my customers and only have (rather)small expenses. BUT the reason I am here, is to listen all of you and consider every advice. You doing great job that I appreciate very much!

I've got to agree with you re being a sole trader. You will need to submit a tax return anytime between April next year and January the year after. Accounts should be fairly straight forward for you and can be done on an excel sheet if you're comfortable with doing that. An accountant or bookkeeper can help you with the accounts preparation and most certainly an accountant can help on the tax planning side, so is something to be considered and shouldn't be dismissed lightly.

Unless you are aware of the responsibilities in running a limited company I wouldn't suggest it at this stage unless you are willing to have an an accountant on board. You would need to submit a much more complicated tax return and it's not for the faint hearted. There's also an annual return and abbreviated accounts to do each year, which is part of the service an accountant offers.

Two other things you need to consider. You will need to register as self employed https://www.gov.uk/new-business-register-for-tax and also pay tax in advance with your first tax bill if it's over a certain amount. https://www.gov.uk/understand-self-assessment-bill/payments-on-account

 

[kengurinka]

Leaflets are good if you are throwing something new into people's minds such as '
you can get all this done for £xxx'
'Its easier than you think
A second pair of hands who will do all these jobs ....
Special spring tidy up offer
After school holiday 'autumn revive'
Time to forward the list of jobs to me from curtains to cabinets.
New baby on the way? we help make your dream nursery.

Thank you for these very inspiring ideas Christine And yeah I´ve decided that a website would be a plus for me, so I am going to do something about this.

and also pay tax in advance with your first tax bill if it's over a certain amount.

Obviously I went through HMRC websites, even youtube videos about self assesment and everything around it, but somehow I´ve missed that link.. It was confusing at first, but now I´ve got it(in a way). Thanks
Now my question is - when I will register in May/June15, I can do my 1st self-a. any day after 5.April 2016, pay 1st payment on acc.(half of the bill?) by 31.July16 and 2nd payment o.a. by 31. Jan17? OR this rule doesn´t apply for the first ever self assesment as I can´t pay half of a previous tax bill in July16 as I haven´t had any before? HMRC says that - Each payment on account is half your previous year’s tax bill.
Not sure if anyone will understand my writing style in this case, but don´t worry I most definitely will get in touch with local accountants.

 

[kengurinka]

Aaaah I worked it out! 1st ever payment must be made by 31Jan 2017 and this includes the first tax bill from April 2015/16 + half of this amount as an advance pay on account, the other half to be paid until 31July 17, And 31Jan18 = balancing payment+half of April16/17 tax bill as an advance pay on account
I hope I am right.

 

[MyAccountantOnline]

Thank you for these very inspiring ideas Christine And yeah I´ve decided that a website would be a plus for me, so I am going to do something about this.


Obviously I went through HMRC websites, even youtube videos about self assesment and everything around it, but somehow I´ve missed that link.. It was confusing at first, but now I´ve got it(in a way). Thanks
Now my question is - when I will register in May/June15, I can do my 1st self-a. any day after 5.April 2016, pay 1st payment on acc.(half of the bill?) by 31.July16 and 2nd payment o.a. by 31. Jan17? OR this rule doesn´t apply for the first ever self assesment as I can´t pay half of a previous tax bill in July16 as I haven´t had any before? HMRC says that - Each payment on account is half your previous year’s tax bill.
Not sure if anyone will understand my writing style in this case, but don´t worry I most definitely will get in touch with local accountants.

If being a sole trader is the best structure for your business and you commence trading in May/June of this year the income will be reported on your Self Assessment tax return to 5 April 2016. The tax for 2015/16 will be payable on 31 January 2017 together with a payment on account for 2016/17.

If you trade via a company you will pay tax in one single annual payment based on the company profits 9 months and 1 day after the end of the accounting period. A company doesnt make payments on account or balancing payments in the same way as a sole trader.

 

[MyAccountantOnline]

Aaaah I worked it out! 1st ever payment must be made by 31Jan 2017 and this includes the first tax bill from April 2015/16 + half of this amount as an advance pay on account, the other half to be paid until 31July 17, And 31Jan18 = balancing payment+half of April16/17 tax bill as an advance pay on account
I hope I am right.

Sorry I replied to your earlier post before reading this.

 

[justintime]

Aaaah I worked it out! 1st ever payment must be made by 31Jan 2017 and this includes the first tax bill from April 2015/16 + half of this amount as an advance pay on account, the other half to be paid until 31July 17, And 31Jan18 = balancing payment+half of April16/17 tax bill as an advance pay on account
I hope I am right.

Thats about the gist of it.

 

[kengurinka]

Thanks guys, what about ´wearing´ magnetic business stickers on my car? Do you think it does require a business car insurance or not?

 

[colour24]

An accountant WILL save you money, no matter how small your income and expenditure. In your first year you will probably make a loss due to purchasing the items you need to trade. Your accountant will claim a refund on previous PAYE earnings which can go back several years. They will suggest things you wouldn't have thought of that will put money back in your pocket even after paying their fees.

 

[kengurinka]

Fortunatelly, HMRC have automaticly paid back, my overpaid tax last years, but yeah, I´ve already contacted a few local accountants and already got answers for some of my initial questions