Start a Business
Take the plunge, start a business, be your own boss. In the UK it’s easy to start trading as a business until you hit the magic £1000 profit figure. This means you’ve taken off your expenses and you’re left with £1000. Nothing to worry about, HMRC treat this as a tax-free bonus and there is no need to declare or pay tax on it.
Go £1 over the £1000 of profit and it’s an entirely new world. You are now an official taxable business. So, for a small enterprise that makes around £30,000 a year the administration part needs to be set up.
You need to do the following for legal reasons
- Set up a Government Gateway account online.
- Request a UTR or Unique Tax Reference for your business activity from HMRC, phone them. This will take 6 weeks to organise.
- Open a second bank account for the business.
- Get an accountant or a bookkeeper to help you file your taxes.
- Set up basic bookkeeping systems for invoicing and expenses claims.
- Think about what insurances you now need.
Operational things that you’ll need
- Address for business.
- Phone number for business.
- An invoice template.
- Google maps account.
- Optional domain name and website.
More help once you are trading
- Do some market research before you start serious marketing expenditure.
- Look for any free no-strings help you can find and use it.
- Think about the best apps to help manage your business.
- Join a professional body or trade association, keep up your knowledge base.
- Read this page also