When to register business

[Cambs]

Hi All. I am about to start an online business selling gifts. I have a website setup and suppliers of products. I wanted to ask when the best time will be to notify HMRC. I have a Monzo business account set up. I have researched the market and have a business plan in place. I understand that I can earn up to £1000 before declaring the income to HMRC. I was advised to test the market first before going through the HMRC route to ensure it is worth the hassle just in case it fails. I want to ensure I’m not breaking the law too. I have all of the GDPR in place. I will save a % of any income towards any PAYE obligations. Any advice will be welcomed. I do have a full time job too so this is a sideline.

 

[DWS]

Setting up as a Sole Trader or as a Ltd Company?
Just first you mention the £1000 threshold which is for self employment and then you mention PAYE which would be you as an employee unless you mean you are going to be taking on employees with your sole trader business.

 

[Cambs]

Setting up as a Sole Trader or as a Ltd Company?
Just first you mention the £1000 threshold which is for self employment and then you mention PAYE which would be you as an employee unless you mean you are going to be taking on employees with your sole trader business.

Sorry for confusion. Self employed status Sole trader.

 

[DWS]

If you start your business now then you will have until October 2024 to notify HMRC of your self employment but as you say above if below the £1k between now and next April then no need to register until the following year.
Might be worth seeing how it goes for a while and to see how profitable it is, if it goes well then book an appointment with a local accountant for a chat, most will give the initial meeting for free, because you are already in employment (maybe even higher rate tax payer) then it could be that you may be better off with a Company, but the accountant would be able to advise you on this further down the line.

 

[Cambs]

If you start your business now then you will have until October 2024 to notify HMRC of your self employment but as you say above if below the £1k between now and next April then no need to register until the following year.
Might be worth seeing how it goes for a while and to see how profitable it is, if it goes well then book an appointment with a local accountant for a chat, most will give the initial meeting for free, because you are already in employment (maybe even higher rate tax payer) then it could be that you may be better off with a Company, but the accountant would be able to advise you on this further down the line.

Thank you. thats good advice. My thoughts were to see if it makes any profit first. And I have taken in to account my current income is £44k so would go in to higher earnings bracket so that needs considering too. Thanks.

 

[Newchodge]

Thank you. thats good advice. My thoughts were to see if it makes any profit first. And I have taken in to account my current income is £44k so would go in to higher earnings bracket so that needs considering too. Thanks.

In thta case I would have a chat woth an accountant sooner rather than later.

 

[Cambs]

In thta case I would have a chat woth an accountant sooner rather than later.

Thanks. As most will offer a free initial consultation nothing to lose. Many thanks

 

[WaveJumper]

If you start your business now then you will have until October 2024 to notify HMRC of your self employment but as you say above if below the £1k between now and next April then no need to register until the following year.
Might be worth seeing how it goes for a while and to see how profitable it is, if it goes well then book an appointment with a local accountant for a chat, most will give the initial meeting for free, because you are already in employment (maybe even higher rate tax payer) then it could be that you may be better off with a Company, but the accountant would be able to advise you on this further down the line.

@Cambs defiantly this advice many don't seek the advice of an accountant soon enough, they can save you money and a lot of heartache especially when just starting out. As you obviously have another income they can also advice on the best way to structure your finances going forward.

Welcome to the forum and best of luck with your new venture

 

[Cambs]

@Cambs defiantly this advice many don't seek the advice of an accountant soon enough, they can save you money and a lot of heartache especially when just starting out. As you obviously have another income they can also advice on the best way to structure your finances going forward.

Welcome to the forum and best of luck with your new venture

Thank you. Appreciate your welcome!