How hard is it to become fully self employed, working your own company?

[Micky89]

I was wondering how hard it is and how risky it would be to try to start your own electrical company, whether alone or with a partner. Is it a matter of getting the van and the gear and finding jobs? how hard is it to maintain a constant string of jobs? is it work 24/7 to keep making enough money to get you by?

any information or personal experience of doing this type of thing would be great.

also, is it actually true that you get the full price of a work van back on rebate?

 

[Southern Spark]

If I were you I would get on the business link course asap. I am in the same position, I have jsut started on my own, im doing really well, though it is early days and although I am working everyday, I dont seem to have much coming in from late Nov ish onwards. Get a few good jobs ready for when you do start and keep your overheads to an absolute minimum!!

 

[Southern Spark]

oh, and you can write off the van against your tax, but (and dont quote me on this!) I think you just write off the depreciation (about 20% per year).

 

[RAGES]

I my self have started on my own and the following information.

1. Yes you will work all the hours that you have.
2. You may have some days when you dont have any work.
3. If you look at this way, you take off your expense before you pay tax while if you work for someone else you pay tax then you take off your expensive.
4. You are your own boss (except for your better half)
5. You do what you want and when you want, you have the freedom.

 

[GLENNSPARK]

I will have at least 2 years to finish my apprenticeship so wont be going self employed yet....i`m quite happy to work for my apprenticeship boss and ride out the rough ecenomic times...then whe`l see whats what.....might go part p registered early next year though so i can do my own notifyable stuff....whe`l see..........

 

[i=p/u]

so when you say pay your expense then tax, take it you have to keep all these receipts to back it up..or arnt they fussed..

 

[Richard Burns]

Keep all receipts (VAT receipts) for everything and log them and keep a back up.
You will then never need them but if you are ever checked up on by HMRC you will need the evidence. They will expcet you to be able to provide details of all expenses for the last 7 years trading.
Keep them, file them (burn them after 8 years!)

 

[i=p/u]

so say you completed a job you got payed £1000 but materials cost £300 desiel cost £50 are you only taxed on £650???

 

[cagedanimal2010]

pretty easy really. vat receipts only become "valid" after 70K. if you have work its great if you dont its bad times!!


Danny

 

[cagedanimal2010]

so say you completed a job you got payed £1000 but materials cost £300 desiel cost £50 are you only taxed on £650???

Depends what type of company you are?

 

[i=p/u]

sole trader with hired help

 

[derek preece]

All expenses are deducted first, then you pay tax on the 'profit' at the current personal tax rates if you are a sole trader. You need to try and get your head around the info on the HMRC website, and use a speadsheet, or use an accountant.

 

[i=p/u]

i think most use an accountant

 

[Geordie Spark]

I was self-employed in various businesses for 27 years For 12 of those years I was in an excellent partnership.

I found that getting INTO business was relatively easy ..... the hard part was STAYING in business !!!!

 

[parker56]

keep your paper work up to date it can & will come back and bite you (tax man) put your tax & insurance in a bank account and save till end of tax year, for your tax bill.

 

[Octopus]

Invest in some business software and use an accountant, sure these things cost but they are necessary overheads of running a business in the 21st Century!

 

[TPES]

I find I never have any more than 2 weeks work booked in advance, no customer can ever wait longer than that, every call I get they wanted you there yesterday!

If you do a good job, then work will follow, all my work comes from recommendation.

As soon as you lower your prices to compete with the cowboys it will show in the end result to the customer.. Then you'll forever be advertising and chasing work and ultimately not be in business long..

 

[Octopus]

I find I never have any more than 2 weeks work booked in advance, no customer can ever wait longer than that, every call I get they wanted you there yesterday!

If you do a good job, then work will follow, all my work comes from recommendation.

As soon as you lower your prices to compete with the cowboys it will show in the end result to the customer.. Then you'll forever be advertising and chasing work and ultimately not be in business long..

Agree, but sometimes clients aren't in a rush so I do book them further out in my diary so as to keep flexibility in the days to come

 

[Knobhead]

An accountant is a necessary evil. I was married to a tax inspector so got to know the tricks.

Depreciation is one hell of a minefield to calculate cumulatively year on year. Some items have progressive rates others fixed time rates.
Company computers are a fixed rate @ 25% per year, the software is 12.5% progressive!
Tools of your trade are progressive depreciation, until you get to test equipment.
One to watch out for is the company vehicle, Oh dear what a minefield if it could be classified as being used for private use.

And as I’ve said before, the 70” flat screen isn’t going to pass as a computer monitor no matter how bad your eyesight is.

If the tax office get their claws in to you there’s no escape!
If you successful enough to get to VAT status then god help you if you fall foul of them!