Forum Moderators: LifeinAsia
Some of you might have remember I posted a while ago wondering about starting up a business (uk) and I had several questions and was looking for help well the time has come to let everyone know how it went and what advice I would give.
The main point of advice everyone gave me was to go see Business Gateway as they would give financial help and point me in the right direction however I felt as if they were not a real help so I put off the idea of starting a business. It wasn’t until after I started my second job I truthfully realised working for other people is not for me and I had to do something so I quit and took a month’s holiday.
The best thing that I have done was set up a meeting with a local accountant. They give legal advice and financial advice and if you use their services life just becomes simple in terms of knowing what to do. I simply gave them £100 to register me, become the legal secretary and take care of all that type of stuff as it leaves me to only take care of business matters.
They set me up as a limited company as they decided based on what I earn it will save me more tax in the long run rather than being a sole trader. I simply send them monthly reports of incoming and outgoings and they let me know how much tax I will need to keep in the account and coaching me along the way.
So really that’s my one bit of advice if you want to start up your business and your just completely lost go see an accountant, many give a half hour’s free talk about how they can help. I’m glad I did things are just swell.
If anyone else has any tips & advice for small business start ups post them & your story here.
RJ
RJ
Don't feel you have to form a LTD company, or that you have to pay an accountant (though if you form a LTD company you do have to hire an accountant).
Matt
though if you form a LTD company you do have to hire an accountant
I don't think that is true? I could have set up a limited company and sent in my own books to inland rev? I know I didn't have to form a limited company however I save a few £100 as I pay myself a smaller wage and then get paid the dividends at a lower tax rate.
Tell you whats hard tho - setting up a business bank account, took me ages to get it all sorted.
RJ
I do use a limited since wanted a separate legal entity and wanted to benefit from dividend payments (run online newspaper and legal problems come up every now and then). But reconciling accounts in Sage when you have three accounts each in different currencies, plus charge crds, paypal etc can be a pain if you pay invoices some time after they are recieved...I wish banks would include reference numbers on statements! Though I would guess I would have to reconcile with a sole as well.
My wife does the book keeping day-to-day and see accountant every 3 months or so when due to pay VAT, PAYE...plus once per year for the big return. Use Sage for payroll as well, real easy to use.
As a Scottish ltd I am hoping the SNP drop corp tax to 10%, but I will not be holding my breath :-)
[edited by: FattyB at 4:31 am (utc) on Aug. 27, 2007]
