l need your Help

[cowboy]

Hi all
First of sorry for not been posting for a while been very busy, and not been on here.

first of all l am on PIP, {disability allowance} and l am getting told more and more l should set up on my own full time business.

l have a 1000 questions l need help with but l will keep it short, l am at the moment l am in a garage which is not a commercial garage in other words it` meant to store things in or park your car in although l use it for woodworking no complaints as yet to the noise there is no electric there so l am using a 5000 watt generator

1}will l be able to start there or will l have to find somewhere else to start my business.

2} Will l be able to get help from the jobcentre and what will l need to ask them

3} Will l need to look for another place to work from,

4} Next is about self employment what is the cost?

5} Sole trader or Limited

6} What would be the cost of start up for the business {l have all of the tools l need}

7} Insurance, where is the best place to get insurance for tools and premises

Sorry if this sounds like l am being a big kid but l wound just like your thought on this.

By the way l am 60 years young so no chance of me getting a full time job will my condition.

Many thanks for reading this post

 

[rayf6604]

I will offer advice on q5, don’t go limited unless you want the onerous task of ensuring your accounts are lodged with Companies House on an annual basis.

Surely the question as to whether you can work from you garage lies with the local council.


Sent from my iPhone using Tapatalk

 

[silver]

[MENTION=421]cowboy[/MENTION]

Firstly it all depends on your business plan?
What do you intend to make and sell and how much money you intend to make from that process?
Does your local council have restrictions on what you can do with your garage?
Is it on your own property or is it council or housing association owned?
If rented does it have restrictions of what it can be used for?
If rented does you tenancy agreement state any restrictions to your property?

So many questions that we really can't answer.

Some answers as to what I would do, but that's based on my personal circumstances and what is could do.

1}will l be able to start there or will l have to find somewhere else to start my business.
I would start there, you have been using it with no issues in the past so why not.

2} Will l be able to get help from the jobcentre and what will l need to ask them
Nothing wrong with asking, but they will want a clear outcome in the end.. personally I wouldn't bother with them.

3} Will l need to look for another place to work from,
As 1. Above

4} Next is about self employment what is the cost?
you will only need to do a self assessment form, don't go sole trader or register at companies house as it will only mean more paperwork

5} Sole trader or Limited
as per 4 above

6} What would be the cost of start up for the business {l have all of the tools l need}
You won't need anything, just start selling from what you make now, all you need to do is make sure you record all your profit when you sell, then declare that on your self assessment

7} Insurance, where is the best place to get insurance for tools and premises
Why am I not surprised you haven't already got insurance any of the insurance companies. I'm with direct line and added my morkshop on to the house insurance. Costs me an extra £28 a year.:

Provided you notify the tax man that's the most important thing, self assessment will cover that.

It all depends on where you workshop is, if it's in the middle of a town centre then there may be someone that will complain about the noise and a generator running.

 

[loftyhermes]

Cowboy, if you are getting disability payments check how much you can earn when in business before affecting them, (but be careful they might stop the payments altogether) financially it might not be worth it. It will certainly mean more paperwork as well as the tax man the Dept. of work and pensions will send you some forms.
Silver, doing a self-assessment form when a business is being a sole trader.
happy scrolling
Steve

 

[Lons]

Hi Cowboy, sorry to hear about your issues, can't be easy for you at the minute.

before offering my opinion I think the most important questions should be:

What services or products can I offer? / is there a market in my area or on the net that I can exploit and what competition is already there? / What will these services or products cost me to provide or make? / How much will my overheads be? / How much salary do I need to draw for my living expenses and how will I survive in the early days while building up the business?
There are other issues as well which involve the impact on family, how you cover work and income during the inevitable illness days ( also applies when you need to take time off for other members of the family ), bank holidays and most importantly of all - are you mentally and physically fit fir the not inconsiderable effort it takes to make it all work?
Are you capable of marketing your products and actually selling them and then actively chasing for payment when necessary?


In reality, if you can do it then it's rewarding and you can make a very good living but you need to be honest in your assessment. At the minute you are in receipt of meagre but regular allowances which you might immediately lose and as a double whammy will need to start paying at least class 2 NI payments plus additional on profits if high enough. You will also need to submit tax returns and may have to employ an accountant if not able to do it yourself.

OK, all that said, if the answers are positive and you're fully committed then go for it but my advice would be do a huge amount of serious research beforehand as making things for a hobby is very different to doing it for a living.

1) Your existing garage.
Not a problem if no-one objects however much depends on the conditions of your rental agreement or lease/freehold if your own property. Many exclude business unless just a home office based so check.

2) help from jobcentre.
Probably not but sometimes there are start up incentives available so nothing to lose

3) Another work place.
Possibly depending on answers to your first question and linked with insurance as they can refuse to pay out if they haven't covered you as a business rather than just a hobby workshop. Depends on your attitude to risk but one of my mates lost £20,000 pounds worth of equipment by not declaring.

4 & 5 ) I decided to go as sole trader as there are benefits and I didn't want to form a Ltd company but you can just declare as earned income. As a sole trader you will need proper accounts but in my opinion you should do that anyway otherwise unless a very small operation it's possible to lose sight of what you're doing. It isn't difficult to keep simple accounts. As a sole trader I could easily open trade accounts with suppliers and could easily take advantage of allowable tax expenses and the write down of tools, equipment and vehicles as well as office and marketing costs, more difficult to achieve if not a proper business. ( you can write down your existing tools btw as well as new purchases ).

6 ) Doesn't cost you anything to register as a sole trader. You have to of course notify the job centre and the inland revenue, you can use your existing personal bank account so all you need to do is think up a business name and print yourself some letterheads and ideally get some business cards printed so you can spread your name around. You will probably lose all or some of your PIP allowances but might not depending on your circumstances, so ask them before you take the plunge.
Nothing however to stop you staying as you are claiming benefits while building up a business as long as you declare your " part time" earnings to them as they may affect your benefits. I believe there is also a cap on how many hours you can work and be careful as they may take the view that if you are capable of working you might not be entitled to PIP at all and are fit to work.

7 ) You have to shop around and it depends as said on your risk attitude but remember if you work on custmers premises of have visitors to your workplace you really should have public liability insurance, I've been retired a couple of years so out of touch but mine cost about £70 pa for £2 million cover.

I built up a very successful small business before retiring after 18 years and never regretted my decision despite previously having a well paid and responsible job with paid holidays, company car and all the other benefits so would do it all over again.

All the best with whatever you decide to do Cowboy

 

[flyfishingeric]

Good morning Cowboy,
You received lots of very good advice off Bob, there is not a lot for me to add.
My initial advise is to build a comprehensive business plan.
This should include market research of the products you intend to produce and market including ways to diversify as you grow.
Depending on the products or services you propose, there may be a professional Institution that could offer start up advise?
Also there are Local Citizens Advise Centres that might offer information to new businesses and know of start up schemes. Worth a look.
Hope this helps. Good luck.
Eric.

 

[Penpal]

I have been retired twenty years now,your relationship with your neighbors is very important. As you can best plan your working hours you are in a good position to keep excess noise to daylight hours.THat generator can be a worry noise wise.

All the above advise is sound and important.

Wish you success mate.

Peter.

 

[crazylegs]

My first thought would be to find somewhere with power. The generator is noisy, gives of fumes and will be expensive to run. If you want to make a business of it you can't be popping to the petrol station every day to fill your can up.

 

[silver]

Silver, doing a self-assessment form when a business is being a sole trader.
Steve

Nope, sole trader and just doing a self assessment form are two different things..

With sole trader you are registering you are a trader.

With self assessment you aren't! Simple.

With sole trader you register with companies house as a sole trader. Then fill in your self assessment form each year.

But if you earn less than £1,000 per year companies house wouldn't advise that you set up as sole trader. So starting off you are just better doing a self assessment you will know how much you earn and once it triggers over the £1,000 you can then register. But don't have too.

That was my advice from a registered accountant only 6 months ago.

 

[loftyhermes]

Sole traders do not have to register at companies house, just with the tax man and complete a self assessment return, just the same as anyone else who has to fill one in just adding your business incomes and outgoings. Check out gov.uk for further info.

 

[Ray7756]

it sounds like you are already doing enough business and bringing in an income so only you can decide when you have enough potential income to give you a living,
PIP is personal independance payment, and is not income based, eg I am on full PIP ( lung cancer) although it is in remission it will never go away so i am on PIP for life even if I go out to work or start a business, if you are on the basic PIP that is for temporary disability, ie my wife is on this and needs a hip replacement, when she gets this done she will probably loose her PIP
The employment office runs a scheme that will give you a weekly payment to help start your own business ( for first 6 months)
You need to check all the info and make your decision
Just remember to keep records of all income and outgoings for the taxman
Keep going from where you are at the moment and increase business as the opportunity comes along, no need to go to the expence of renting somewhere else,
Good luck for the future
Ray

 

[cowboy]

Thanks for all the advice you lot have given me many things to think about an the advice l have been given is brill so next step is to find out from Jobcentre
what and where l stand and if there is any help l can get and also the people at PIP,

once again thank you all
l will let you all know how l get on

 

[Lons]

Sorry Eamonn but unless it's changed in the 2 years since I retired you certainly don't need to register at company house as a sole trader which is very different from a Ltd company in which case your accountants advice is wrong.
You do have to inform HRMC and can submit your returns on manually by October 31st or January 31st if on line rather than end of the normal April tax year. Your business accounting dates can start on whatever date you choose so initially you can use that to your advantage.

 

[Lons]

if you are on the basic PIP that is for temporary disability, ie my wife is on this and needs a hip replacement, when she gets this done she will probably loose her PIP
y

That's interesting Ray, looks as though we missed out. My missus was virtually stuck in the house as she desperately needed both hips replaced 2 years ago. I had to buy her a mobility scooter and she qualified for a disabled blue badge but we never thought of, or were offered financial assistance. She had them both done with only a 7 week gap but it has transformed her so hope you wife gets hers done soon.

Now, just need tyo get her foot operation done now which will mean being in plaster for 3 months, it's a bugger getting old.

 

[silver]

Sole traders do not have to register at companies house, just with the tax man and complete a self assessment return, just the same as anyone else who has to fill one in just adding your business incomes and outgoings. Check out gov.uk for further info.

I have Steve, I think you are getting a little mistaken. Self employed people can register as a SOLE trader, they are self employed and not a sole trader until they are registered as a sole trader.

All said is to be a "sole trader" you are registered at companies house if you are earning over £1,000. You also fill in a self assessment.

You DO NOT need to be a "sole trader" to fill in a self assessment form. all because you fill in a self assessment form does NOT make you a SOLE TRADER.

You HAVE to register at companies house to become a sole trader.

Been there done that. wore the Tee shirt.

Take a look at you.gov.

Even if you earn over £1,000 you don't have to register as a SOLE TRADER, only if YOU want too. Provided you make sure that you fill in a self assessment form for your taxes at the year end and pay your taxes.

Set up as a sole trader - GOV.UK

 

[silver]

Sorry Eamonn but unless it's changed in the 2 years since I retired you certainly don't need to register at company house as a sole trader which is very different from a Ltd company in which case your accountants advice is wrong.
You do have to inform HRMC and can submit your returns on manually by October 31st or January 31st if on line rather than end of the normal April tax year. Your business accounting dates can start on whatever date you choose so initially you can use that to your advantage.

Where have I said you HAVE to register at companies house Bob?

All I said is that you have to fill in a self assessment form, so you can pay your taxes.

Companies house recommend that you register as sole trader if you earn over £1000. but its not compulsory.

That's what I said didn't I..

Edit...

Just checked.. This is what I wrote..

4} Next is about self employment what is the cost?
you will only need to do a self assessment form, don't go sole trader or register at companies house as it will only mean more paperwork

 

[Lons]

Fair enough Eamonn, I read it differently I guess. Must learn to read properly.

There are definite benefits as a sole trader over just adding the income to your tax return. as I said, it's much easier to justify and offset expenditure to HRMC who view the lack of accounts with suspicion and those accounts can be pretty simple.
Why would anyone not take advantage of claiming a reasonable part of their property, energy costs, maybe phone costs as well as transport if it's easier to do as a sole trader than not?

Obviously we all have differing views and I can only draw from my own business experience.

regards

 

[silver]

[MENTION=361]Lons[/MENTION]

Totally agree with your comment Bob, however as it is so often difficult to put an accurate business plan together with craft sales, especially when I was personally waiting for treatment then a full year may well not have been possible anyway.

This should be reviewed after the first year to see if it's worth going to sole trader or stick with self assessment anyway.

 

[Phil Dart]

Beg to differ with you Eamonn.

If you are self employed, with no partners and are not limited, ie you are in business on your own, you are by definition a sole trader. A sole trader is a self employed person and a self employed person not in a partnership is a sole trader. They are one and the same thing.

If you are in business on your own, in other words if you are a sole trader, and your turnover is £1000 or more a year, all that is required (which is compulsory by the way) is to notify HMRC, which will then mean that you must maintain accounts and that you must complete and submit a self assessment return each year. You are not required to submit your accounts to HMRC, however, they reserve the right to inspect them, but it is impossible to complete a self assessment without guessing or making it up if you have no accounts.

Companies House only registers limited companies. Sole traders and Partnerships have nothing to do with Companies House.

 

[loftyhermes]

I'm with Phil on this. He explains it very well, better than I ever could.