Newby needing lots of advice please

Discussion in 'Growing and Managing a Business' started by AJW, Jul 15, 2015.

  1. AJW

    AJW
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    Hello

    I need some advice please.

    I am thinking of taking my hobby and turning it into a business but reading all the tax information is so scary and confusing. Could someone please point me in the right direction before i go and see an accountant and make a fool of myself!


    The business will not be VAT registered but i will complete a self assessment. I will also keep my current job so i have a regular income and i'm paying tax. I have saved around £1000 for start up and already have pretty much all the equipment i need, however, i am confused about what i can off set and if i buy a car with the savings how will it work financially, what will happen if i don't make any money in the first year or worse i have more outgoings than income? I believe i can claim a % of household bills as i will run the business from home but if i haven't paid any tax through the business how would i claim what i have spent?

    Sorry if all this seems dumb i have so many concerns but id like to give it a go and understand as much as possible before taking the plunge.

    Thanks
     
  2. SpikeTheLobster

    SpikeTheLobster
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    Talk to an accountant. I ran a limited company back in the 90s (one of those two-director setups) and a good accountant can save you more money than you pay them. Most will offer you a free consultation that will answer all those questions or, if not, you can get that sort of info from a high-street bank, Citizens Advice or similar places.

    The thing is that, even if you get responses here, the chance that they're accurate and sensible are tiny. Talk to a professional, commit to nothing, find out from people who actually know. :)
     
  3. missbishi

    missbishi
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    Believe it or not, HMRC are actually quite helpful! Yes, most people see them as the enemy but they do offer a great deal of help for start-ups. Of course, it's only because they want to make sure you are paying everythign that you should be but they can also give you further informationon deductible items and NI contributions, which you will also need to keep up to date.
     

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