Starting your business
with reps.co.uk
You may be nervous and think starting a business is difficult. In truth, it’s not difficult but you have to take your time and plan what you want to do carefully and whatever you do don’t rush in.
Before you embark on your new business venture you need to do your homework to be sure it's what you want to do. Before investing money it's best to take independent professional advice.
You may want to make things yourself to sell online or sell a companies product or service as their agent or representative. We invite you to join our rapidly growing Facebook Group of like-minded people just like you
Your Options
- Become a self-employed agent/representative.
- Make your own product such as chocolates, cakes, jewellery or craft wares and sell online.
- If you have a skill or certified qualification you can offer your services as a consultancy to third parties and promote your services online.
Business Status
Types of Business Status
Self Employed
Employed
Limited Company
Self Employed
You are responsible for your taxation and national insurance payments
You will need to keep all your receipts for expenses you pay in the course of running your business. You should contact an accountant for advice best to find one locally and have a meeting if you are new to being self-employed as merely sourcing this information online can be problematic and you need to fully understand your legal responsibilities and income opportunities of what you can and can’t do.
Employed
When you are employed status the company are responsible for your taxation and national insurance contributions as well as your work place pension contributions. You are entitled to all statutory paid holiday, sick pay and other benefits as an employed person and all associated legal protections under UK employment law.
Limited Company
Self Employed or Limited Company? Whether you opt for self-employed status or limited company depends upon the circumstances of your business venture and is best advised by a professional Accountant who can direct you accordingly. Setting up a limited company is only £12 which you can do online https://www.gov.uk/set-up-limited-company
It takes around 30mins and you will require ID information and be clear as to the type of business classification known as SIC (Standard Industrial Classification) it’s a number that identifies your type of business category and activities. You will need to know this number before you register.
https://www.gov.uk/government/publications/standard-industrial-classification-of-economic-activities-sic
Benefits and Negatives
Benefits
A limited company is a legal entity under the law and you become a director and or shareholder, you can be both 100% shareholder [owner] and sole Director [worker] of your company. Effectively your limited company employs you but you are your own boss no one can tell you what to do and you are ultimately responsible.
Should things go badly and your business fails it’s a legal option to close your limited company and associated debts can be potentially lost with the closure. This does not include any bank guarantees you have agreed with your Bank for banking services/overdrafts/ personal loans/secured loans etc. These are enforceable as personally guaranteed by you.
Negatives
The accountancy costs for completing your accounts are higher than self-employed if you use an Accountant to mitigate tax liability which becomes more important when your business grows significantly and may have overseas suppliers or more complicated scenarios. In the beginning, you can do your own accounts and bookkeeping to save fees with comprehensive online services such as www.xero.com
It’s best you discuss your business with a qualified professional to ensure you protect yourself your assets and be tax-efficient – Talk to an Accountant at the outset once you know your business model at outset as its best to set it up correctly. You need to talk to an Accountant if your self-employed or considering whether to have a limited company. When you talk to the one you feel comfortable and talk openly about your business idea in terms of what would be the most tax efficient option. A good pro-active Accountant is worth their weight in gold as they know the correct ways to mitigate and reduce your tax liability in years to come so choose wisely. Or be referred to a Chartered Accountant by a friend or family member.
VAT – Do I need to register with HMRC?
When you set up your new business it is NOT essential to register for VAT. Accurate as of October 2020 thresholds may change as announced by the Chancellor of the Exchequer on Budget days.
You must register for VAT if:
- Your turnover is greater than £85,000 or you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period
- your business had a VAT taxable turnover of more than £85,000 over the last 12 months
You might also need to register in some other cases, depending on the kinds of goods or services you sell and where you sell them.
Generally you do not need to register for VAT if you do not expect your income/turnover will exceed £85,000 in a year.
If you’re unsure then discuss this with your Accountant.
It’s all about the Marketing
Whatever your business idea the most important ingredient to make it successful is how you intend to market to reach your intended ‘perfect’ potential customer.
Thanks to the strength and popularity of the internet it is now possible to set up a new business with not much money and promote it online through the following:-
- Your website
- Other websites such as www.etsy.com, www.amazon.co.uk
- Social media, Facebook, Instagram, Pinterest
- You Tube
Putting your business online is so easy today, you will need a website and product images/videos supplied by the manufacturer or get them taken professionally as the quality of your images will either impress a potential customer or not depending upon how they look. Remember when you look at products online you look carefully at the images if they are not clear out of focus or poor quality your likely to go to another website.
Social Media Management
You’ve probably been a social media user for personal use and to use social media for your business promotion is vital if you are going to truly spread the word and build an online reputation of trust and quality. There are many online courses to help you promote via social media. A good tip is to look at your successful competitors and analyse what they do and copy or do it better.
Videos are a great way to engage with your intended audience, especially as more than 80% of online purchases are made via mobile phones small screens, or tablets.
Starting your own business venture is exciting and your first step towards being self-reliant and ultimately financially independent which must be your ambition so you don’t have to rely upon others or employers or the state to support you.
As every journey, always starts with a few steps, and unless you start you will never know.
Good Luck with your business.