Tax and national insurance
- when you are self employed you have to pay this
- you can offset your business expenses against your tax, for example if you buy a car or laptop
- you Only pay tax on your net profit not your takings
- 9,440 allowance before you start paying tax
-you can file a self assessment tax return to tell the tax office how much you owe them or a accountant can do this
National insurance
- if your self employed you normally have to pay class 2
- if your annual profits are over a certain amount you also have to pay class 4 contributions
- in certain circumstances you may be exempt from it
- to find out more www.hmrc.gov.uk/working/intro/self employment
Keeping records
- everything you spend on your business you need to keep a record of
- your basic business record must include:
- a record of all your sales and takings
- a record of all your purchases and expenses
- use these records to create a profit and loss accounts
- the more detailed you make the easier it is to answer any questions
Tax and national insurance working a second job?
- you need to decide whether to take the tax free allowance on wages paid by an employer or on your self employment
- if taken on a second job that would mean you'd pay the appropriate rate of tax on all profits
- nationally insurance is payed on both about 2.50 a week
Self employment health and safety issues
- public liability insurance
- other health and safety disabilities access requirements
- further employment insurance
- copyright law
- crb check if you are planning to work with people under 18 and your staff
- vat you need to be vat registered when you start earning larger sums the figure is currently around 75k
Basic business planning
- a basic plan will help you focus and plan all aspects of your business
- it will help set targets and collate your ideas
- a business plan is also essential for attracting funding to get started
- it should be reviewed on a regular basis to help you monitor and measure the performance of your business
Benefits
- bring your ideas and research together
- help you decide which markets to sell to
- clarify your business purpose to others
- stay on track with targets and objectives
- each section will have a heading these are a good starting point
- vision/mission what are you trying to achieve
- executive summary what will your business do how will it do it,who will your customers be and why will they buy
- history how did you get here how did you form your ideas which people have met that inspired this, why are you starting up
- product and the service, what will you sell? Wallpaper or fabric etc what will it do what problem will it solve does it have a unique selling point that makes it so different, who will buy your product is it new product?
Market research,chow do you know there is demand for your product, what research have you done into this to demonstrate how it will sell, field research getting research from the public questionnaires etc describe your customer there characteristics and there buying pattern
- the market,what is the size of your overall market, is it a growing market, what might your share of the market will your share be over the 3 years? Who is your competition
- research and development, what work have you done so far if work still do, do you have intellectual property rights to address such as trademark patents copyright etc
- basis of operation, will you partner up with someone, premises, equipment, will you need staff, insurance sole trader or partnership?
Management, do you have a team? How many people are involved they need to know their background and what they bring to the business, explain how they can be trusted and how you cAn be trusted with a loan
- cost, initial set upCost, and ongoing costs, how much finance are you investing, funding requirements, and potential sources
Task research into current regional funding options and post graduate free business start up schemes
- www.gov.uk/buisness
- princes trust, wwww.princes trust
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