To ask some basic question re opening a business

[dublingirl66]

Hello all

Hope it is ok to post here

Thinking of opening a business
I have been qualified in my field (mental health) for 15 years lots of experience etc

Found a lovely office to rent
How do I go about registering my business?
Should I get an accountant right away ?
Is there a way to claim some of the rent back as expenses ?

Sorry for all the questions

Good point

My family said the same last night
Plus it could be remote work for quite some time

Please do your research as it doesn’t sound viable based on what you are saying.
In addition to rent you will have
Rates
Insurance (public liability and probably professional indemnity)
Accountant costs
General office costs (things like your computer licences, heating and electric, etc).

Most expenses are tax deductible - but that simply means that amount you pay out is deducted from your overall tax liability.

I’d look at carving out a space in your home to try this first before jumping into an office. It’s the rates that cost - not the rent.

Thank you

The rate per month includes bills for the office
And the use of it over 7 days

Still very unsure
Will be good to speak with an accountant

Also depending on what you are offering be realistic about sessions. Many people want these outside of office hours - so generally you find a lot of “dead space” in your diary.

Best tip, keep a spreadsheet of all of your expenses: date, supplier, amount, VAT and what it was for. Then file all receipts (hard copies or electronically) in date order so that you can find them easily if needed. Fill in the spreadsheet every time you buy something or pay someone, or if that's too hard, weekly. You'll thank me when you have to file your first tax return.

In the gentlest possible way; these are very very basic questions which are very easy to answer with just a small amount of Google research.
If you are needing to ask them on an Internet forum (a non business one, no less) that suggests you aren't in the position to set up a business - and definitely not at the stage of committing to renting an office.

Research hard, then research more, then research again.

Are there any organisations locally who could offer you business advice and business courses. Thats what I did.

Will you be using the office 7 full days a week? Or even 5? If not, I wouldn’t rent an office for very part time work. Dh rents a workshop space (about £300 a month for a barn plus an adjoining office). But he has a turnover of about £120k a year.

Therapists I know who work privately work out of a home office or rent a sort of per hour shared office space (as in they are the only ones using it but other people use the same space on other days). At £150 a week, you would only be working a few hours a week? I would only hire a room for the time you need.

I do accounts for my friend and I use quick books app/website which I would recommend. Its very easy to take a photo upload receipts & link bank account so it saves time on manual updating.

Can you offer this service directly to your client before commiting to a lease of an office. Could you start operating now as a freelancer to build up a client base & to see if there's a need for the service. So by the time you move into an office, you have established a client base.

If there's any way to operate without an office, then that's the route I'd take. Cut down any unnecessary costs and operate lean to maximise on profit.

See if there's a local voluntary sector community hub in your area. They often have rooms to hire and rent out offices to other community sector organisations. This will help with networking & free advertising as people will be using the building for counselling, therapy, age concern & citizens advice etc.

www.open.edu/openlearncreate/course/view.php?id=2179

This is a free OU course about starting a small business, it says approx 15 hours study.

So so true guys

Very early stages

Plus I see now an office may not even be needed

Re the dead space in diary
This is so very true

Plus there will be times when I have no child care so need to get thinking clearly

Have you wrote out a full business plan yet? I did that recently for a business I'm starting and it really helped focus me in on the logistics, the downsides, how to make myself different from competitors etc, how to price, on going costs, there's lots of templates online

Yes will need to do so this month

Will call accountant tomorrow

OP, you work in MH, there is a huge call for therapy for teens if this is in your field.
The lists are endless for help and all these priories are beyond the means of many.
I also advise the accountant, ours helped to register the company, knew what we could claim and filled out all our SA and company accounts.
You need this if you are just setting out, and afterwards if you wish to grow your business.
It's well worth the cost, honestly.

Will do as I have so little experience in setting things up

I'm not hoping to make huge amounts from this to be honest

Just want to offer support for young people and their families

Thanks again all

In my area, CAHMS operates a very strict & narrow criteria of cases that they will take on mainly because they're shit. I work in a related field so deal with the aftermath of failed CAHMS referrals. I would advise you to up skill & offer services to help in these areas as it's hard to find help here:

• Anxiety particularly related to ADHD/ASD
• Girls & ASD/ADHD as they present differently to boys & are often missed
• Gender dysphoria with or without ASD
• Eating disorders
• Confidence and low self esteem

Find out via schools, counsellors, learning disability nurses, SEND Parent support groups what the most common difficulties/referrals are & what has the longest waiting times & tailor your services in those areas.

@dublingirl66

Amazing thank you This was my first thought so wanted to double check

So the rent would be deducted through tax?

You pay tax on the profit you have made.

To calculate this you work out your earnings. That's your income that people pay you.

Then you work out all your expenses. Things like rent, rates, electricity, stationery, IT costs, advertising etc. Add up all your expenses together and take that total away from your income.

Income less expenses = profit. You pay tax on the profit.

These are amazing

Thank you all so so much
Great power of mn

Look at your local LEP - invest NI. They will have a growth hub with access to training, information and mentoring. Invaluable.

I wouldn't bother with an accountant.
At least not at the moment.
The core of your operations is not about having an office or an accountant- it is about revenue, market, sales, profit.

I have been self employed for 15 years- a sole trader.
Never used an accountant. My revenue is just under the VAT threshold- I keep it that way for ease!

You say you are in MH- I am guessing you may be offering counselling ? Which may have to be done via zoom right now?
Many counsellors and therapists rent rooms by the hour for their services- may be much more cost effective for you that way.
Perhaps this may be a good time to build a website rather than look for somewhere to rent.
But again a website is easy to construct yourself, lots of companies offering build packages- Wix, Squarespace etc.
Also time to think about your market, your services etc.
Have a look at competition and what they offer. Think about your niche, gaps in the market, how your service will stand out- your USP.

Also if you are planning to earn £150 a week your earnings will be below the tax threshold.
You still need to register with HMRC, but you won't be able to offset any rent against tax- as you won't be paying any.
£300 rent - plus insurance and any other costs will come straight out of your earnings. You may be working for very little money if you rent.