I want to set up a small business as an extra earner, nothing major but I don't want to fall foul of any thing.
It'll be internet based and I have most things in place to launch the site in a few weeks.
Do I need to set up a business or can I trade as a sole trader/one man band?
Do I need a separate "business" bank account or can I use my current account?
Obviously I'll need to tell the Tax man about it, is this very straight forward?
Any other tips or things I should know?
Cheers.
Deffo a separate account, keep the extra income all in one place then it simplifies things for the taxman.
You might find your paying a fair bit of tax as your allowance will be taken up by your main job if its PAYE.
Lazgoat ... what are you selling? 😛
You'll need to market your website and get it up the google rankings.I want to set up a small business as an extra earner, nothing major but I don't want to fall foul of any thing.
It'll be internet based and I have most things in place to launch the site in a few weeks.
Sole trader is cheaper and simpler to start with and means you can remain anonymous (a lot of LTD company information is public, like how much you turn over, profit, director's names etc).Do I need to set up a business or can I trade as a sole trader/one man band?
You definitely should not use your current account for business purposes! Look for free business banking for the first few months.Do I need a separate "business" bank account or can I use my current account?
Obviously I'll need to tell the Tax man about it, is this very straight forward?
Not until you submit a tax return.
Any other tips or things I should know?
1) You need to see an accountant and get his advice before you do anything!
2) You need customers to start buying stock before you invest significantly.
3) Have you thought about using eBay to get things off thr ground?
4) Running a business can be a lonely occupation and you will be maintaining numerous functions in order to enable the business to run and to grow. It can absorb a lot of your time.
5) What's your USF? If you haven't got one, might struggle to find your niche.
6) Are you able to compete with your rivals?
7) Could you cope with a big demand?
8 ) Know your market and where your business slots in.
9) What's your long term goal?
10) Have you done a business plan?
11) Have you worked out your t'c and C's?
12) Will you need to be VAT registred?
Loads of things to consider!