Starting up questions

[cuteable]

I am looking for a bit of advice. I want to start up my own cake pop making business. My idea was to fit it around my current job and mainly concentrate on going to fairs over summer / Christmas time. I have a job 3 days a week. The cake pop business wouldn't bring in much profit I would hope that it could help us increase pur income by a little just enough to justify me working (at the moment the cost of childcare is greater than my 3 day a week salary but the kids love the nursery and I feel it is good for them. I dont want to have to move them to another nursery).

I have had a look at the business link website and contacted my local environmental health office - waiting to hear back from them. So is this what I need to do and in this order:

1. contact Environmental health and get an inspection
2. register with HMRC

Is there anything else I am missing? I dont want to set up a business bank account. Also what will the effect of me having 2 jobs have on my tax (I curently earn 16,000 ish from my 3 day a week job). Am I right in thinking that I will get my tax free allowance against my employed job so anything I earn as profit from my cake pop making business would be taxed at the 20% rate? Also what happens with the NI contributions. I read that I would have to pay £2.50 per week NI contributons but as the business would only be making a small profit then does this still apply. Im confused as I will be paying NI with my 3 days a week job but I was reading it that because I am already working I may be liable to pay more NI on my cake pop business...

I fear that by the time I have deducted tax and NI it wont be worth the effort...

Any advice much appreciated!

I just had a thought. Do I also need to check my mortgage and home insurance?

Hi,

A cake pops business is a fab idea! You have a readymade market with the local mums I would have thought! I would definitely buy them for my kid's parties and as gifts etc for all ages. They are more original than cupcakes. Business cards handed out after nursery and around the local playgroups etc and you would be away I would imagine.

This is unlikely to affect your home insurance.. but it's definitely worth checking as you don't want to accidentally invalidate it.

I'm not sure about the tax implications but, when I was setting up my company, I found business link to be an invaluable source of information. They sent me really clear and concise information on everything including the tax implications if you decide to be a sole trader or a limited company etc. They will be able to tell you everything you need to know: www.businesslink.gov.uk/bdotg/action/home

Elise
www.filmsinbloom.co.uk

Elisse - I have just seen your reply. Thanks so much for your advice. It's nice to know someone thinks my idea is ok! Im away to do a food hygeine course as a start. I was hoping to get up and running for the summer fairs but I think aiming for xmas fairs is more realistic... Thanks Ill have a look at business link web site.