RE: FN-FORUM: Sole Trader

date posted 29th September 2007 23:52

-----Original Message-----
From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of Leon
stacey=20

>
> Hey guys just wondering what's the easiest way to setup as a sole =20
> trader or
> what ever is needed to get VAT and stuff like that thanks guys, Chris.
>
I would speak to your local inland revenue, if you go self employed, =20
for example, you need to tell them of that. I did in April, and went =20
to a workshop about it. Loads of info from them, and met a few =20
clients there as well.

HTH


Also speak to Business Link and read through their website
(www.businesslink.gov.uk), there's a lot of valuable information there.
Apart from that, there is pre-startup funding and support available. You
can become a registered supplier and even get work out of it.

Also see if there are any business support organizations in your
regional area. Design and technology is pushed quite hard in Britain, so
it's likely there is something government funded around where you are.

Look into the Cultural Business Venture grant from the Arts Council. You
can get =A38000 towards equipment and software, however you have to =
match
25% with either equipment you have bought or money in the bank, so the
actual grant is =A36000 maximum. I don't know if you can apply if you're =
a
developer, but you can certainly apply if you're a designer. However, as
a developer, you should be able to argue that you provide web design.
You need to have been registered as a business for less than a year to
be eligible, I think.

Don't get VAT registered unless you really have to. Some people think
they seem more credible as a company just because their VAT registered,
but it's not really worth the hassle. The current VAT threshold is a
turnover of =A365000 and if you hit anything near that as a sole trader
you can comfortably afford an accountant to sort all your financial
stuff (you should probably look into having an accountant anyway).

If you find yourself earning enough to have to register for VAT at any
point you can still claim back the VAT for any purchases you've made for
the business during the last 2 years (I'm not quite sure if it's 2
years, so please check before taking my word for it).=20

The benefit of not being VAT registered is when working for other small
businesses who might not be VAT registered yet. The only benefit of
being VAT registered before you have to is that clients tend to assume
you're more established and turn over more than the VAT threshold. But
to me there's no point in doing business based on pretence (also our
accountant told us they would never advice anyone to go VAT registered
just for credibility).

Apart from that, get a book on starting a new business. There are a lot
of them out there and they will generally cover business models (sole
trader, partnerships, Ltd. Etc.), taxes and give you a good list of
resource websites to answer further questions you might have.

Good luck, sure that should be enough to get you on the way.

Johan