Timing to start a business, need some help

[gigglinggoblin]

First post so hello to everyone!

I have decided I would like to sell my crafts on etsy/folksy as there is no chance I will be able to go out and get a job any time soon. And it sounds a lot more fun than going back to office work. I'm not expecting to make a huge amount but anything is better than nothing!

My question is this - I have been buying supplies for over a month now but have not listed anything to sell. I know I have 3 months to register as self employed, but if I register at a date later than that on the invoices I have kept will that mean I cannot use those invoices? This may all be irrelevant anyway as I doubt I will go above the threshold for tax but I would like to know. And if I register at the earlier date then will that make any difference to me?

Really appreciate any words of wisdom

[sherrielinda]

hi

hello & but sorry can't help with the question.

[PeggyCrafts]

I have a feeling you need to do it as soon as possible, otherwise you may be liable to pay a fine at the end of the year (although this probably doesn't apply if you are not yet selling) - better to do it sooner rather than later I think, though - you just need to ring the Inland Revenue number for the newly self-employed hope this helps

Helen

[Jo Lovejoy]

Hello and to the forum. Sorry I can't help with your question, I'm sure someone will be along soon who can answer it for you.

Jo x

[gigglinggoblin]

Thanks for all the welcomes, I have been having a good browse round the site and its fab

I dont really have time to do much atm due to summer hols so I was hoping to put it off til at least September then see how things go, I dont want a load of paperwork if I never sell anything! Taxman is scary, dont want to get it wrong <<quiver>>

[Recycled Bag Lady]

Do register as soon as possible. They are very helpful to new, self employeds! They send out a very useful folder with all your info and details of courses you can go on. Also, you need to keep your national insurance payments up to date so that you would still be entitled to sick pay/maternity pay if needed. You can do your tax returns online and they are very simple. I put everything onto a basic spreadsheet in Excel so it's just a case of transferring amounts when doing my tax return.

[elainem]

from previous experience you need to register asap, i left it 3 months and had to pay £100 fine. I certainly didnt break the threshold either. sorry to be the bearer of bad news

Elaine

[gigglinggoblin]

Flippin eck! Dont want a fine, will have to get on the phone. Good to know they are helpful, I guess its in their interests to be but I'm still scared! Will def keep a spreadsheet, that hadnt occured to me

[ladyluckjewellery]

Hi,

Welcome to the forum

I beleive that you have up to 3 months to register as self employed from the date you begin 'trading' i.e, the date when you decide you want to be a business from. This must be BEFORE you have sold anything.

I hope that makes sense - to give you an example, I have always made bits & bobs, but last year I decided to go for it and sell my work, so during September I decided what I would call myself as a business, bought the domain name, loads of supplies and equipment etc. I then told HMRC in early October that I had begun 'trading' at the beginning of Sept, that way my receipts for expenses inccurred in Sept could be offset against my profit for the year.

If I had told them that my start date was in October, all of my costs incurred during September would not have been allowed to be counted in my business expenses.

I do hope that makes sense and that it helps to answer your Q

Claire

[0103media]

3 months is the rule...

basically from the day you register - 3months anything before that you can't set against tax e.g. materials etc..

The only way to do it more than 3 months is to pay the £100 fine.. Some simple maths to work out if its worth the fine or just write off those expenses..

This is only the case if you haven't sold anything..

It really doesn't hurt to register..

If you wish to start selling then the first thing to do is register before buying anything..

hope that helps.. and to the craftsforum

[ARI]

Guys,
I really need your help here.
I was reading this thread and I'm getting more and more confused..
I've called up the HM about 4 times to ask few things about registering as a partnership or sole trader.The first issue was the address of the partnership.Like most of the tennants I can't run business from home, so I purchased an address from Royal Mail (POBox).
Here the results:
-Once they told me I can't register with a PO Box
-2,1/2 times (the 3d time wasn't clear,the guy was more confused than me) they told me "well...why not?"
As I asked if I could put my private address, given the clause of the "no business from home by contract"they mouned something that didn't make any sense.
Plus, and maybe Media can help me here,thay told me that I MUST START TRADING FIRST, and then register within 3 months (and not the other way round)..but how can I issue an invoice if I'm not registered?
Please, someone help me, as I'm getting desperate..everything is getting ready for the start-up (website, bookings at fair,..)and Ijust feel like giving up, as I can't see things clearly..
Any help would be really appreciated.
Thanks
ari

[woodtattoos]

to the Forum, you're in the right place to get those questions answered.... it doesn't seem that long ago that I was asking the same ones myself.

Si.

[ARI]

Yes, you wouldn't say so looking at your gorgeous website...
Really fab things!!
How did you sort out all these...empasse?