starting my own business not sure where to start with legal and tax minefield- please help!

[rdmommy]

hi

I am planning on starting a business, i'll explain a bit. there is a company that already do it but not really in my area therefore i wanted to go into 'partnership' with her and do it my area for her to complete the product her end. i would take 25% cut from the total cost to customer.

i am planning on working from home which would require me to have customers and their children in my home for a short period of time, scheduled appointments of abut 10 mins.

i am needing to know whether i would need insurance to have people in my home.

also i am not employed by her i am basically doing the leg work for her but in my area and taking a cut of the profit, planning on making about £150 per week once it takes off how do i pay tax, do i have to set my own company up?

tia

You can register as self employed and complete self certification on-line.

It is easiest to do this as a subcontractor.

Always avoid being in partnership if you want a simple life. Partnership tax returns are very complicated.

The on-line tax return is quite simple and there are lots of notes to explain everything.

You would need insurance for running a business in your house, and you would also need permission from you mortgage company.

thank you lynli- it isn't a partnership so to speak, it is quite a loose partnership, she already has an established company and basically i want to test the water in my area before starting up on my own which she is fully aware of.

i basically take the payment off the customers and then send on her cut to her if you see what i mean, but would prefer to be legit as i want to go onto do this after xmas on my own.

Remember also to apply for exemption from paying NI. I forgot about that bit and just got a large bill. (unless you want to pay extra NI - I didn't, as I pay through my day job.)

You may need public liability insurance if you have clients in your home.

The main thing is to keep scrupulous records of all invoices & expenses. I've recently set up as a Will writer and am learning about the tax etc as I go along but it doesn't seem to complicated so long as you keep your records in good order.

Have you seen the www.businesslink.gov.uk stuff? It's actually really helpful/readable/useful, as government webaites go They also have local advisers who wll help point businesses in the right direction with these sort of questions (it's free too)