Advice on starting out?

[macka09]

Hi folks, I've decided I need to venture out on my own as a plumbing and heating engineer. I've spent a little while subbying to big companies on the commercial sites but I feel that it's time I made my own way if possible. I've also been PAYE for a big portion of my time in the trade. The most daunting part for me is the business side of things. I have got another post going at the moment about public liability insurance as I'm unsure on exactly what sort of cover I need to be able to operate on my own? I only plan to do the smaller domestic work such as boiler servicing/installs and general plumbing. Is it advisable to find a business manager that could give me the info I require? I've got a few friends in the trade who are one man bands but they don't seem to be to forthcoming with any kind of useful info. I may be overthinking things a little but I'd rather start off on the right foot, so any advice you guys can offer on any aspect would be greatly appreciated, Thanks

 

[Scott_D]

I don’t think you will need a business manager as a one man band unless they are going to save or help you earn enough to pay for their time.
A good accountant might be the best place to start.

 

[macka09]

I do already have an accountant in place who I've been using for a while. I've recently purchased a bigger van also. I just don't want to start operating or advertising until most things are in place if that makes sense.

 

[Scott_D]

Insurance and your own gas safe registration and get started.

 

[SimonG]

I went to see somebody right at the start, free service as I was out of work at the time. They pointed me in the right direction for a business plan, tax, national insurance, book keeping etc.

 

[king of pipes]

You need to inform the tax man of your intentions bud , what name your trading under date you plan to start trading , get a Government gateway access number this takes a few weeks, they will issue you a unique tax reference number this can be used by any sub contractors you may work for to pay any tax owed , you may want to consider some form of accounting software like quick books or sage be guided by your accountant on that one they can often obtain this at a discounted price . All the best kop

 

[macka09]

Cheers for the replies guys. As I have been self employed for a while I already have things like an accountant, van, workwear, business cards and my UTR number. I'm all set up with the taxman as well. I've never really pushed for my own private work and after having the worst 18 months of my plumbing career I've decided I need to do more for my own benefit. Things like T&Cs and what insurances I need to make sure I'm covered for most things that may crop up is what I'm struggling with? A couple of friends have told me to use an app called Tradehelp but I can't seem to work it out. I appreciate the help guys.

 

[macka09]

One more thing guys please. Are most of you a LTD company or sole traders? A friend of mine who runs a freight company believes I’d be mad not to go LTD, any thoughts guys?

 

[SimonG]

I'm sole trader. Stay just under the threshold.

 

[macka09]

I'm sole trader. Stay just under the threshold.

I’m not on about the Vat side of things mate. Just being a ltd company rather than a sole trader.

 

[Ben-gee]

As far as I can tell; Ltd separates your personal finances from your business, whereas for a sole trader they are effectively one and the same thing.
This is fine whilst all is good and you and customers behave themselves but if you get into financial difficulties it is probably better to be Ltd.
However Ltd has more paperwork obligations and presumably therefore more time/cost associated with this.
Like Simon I too operate as sole trader.

 

[king of pipes]

Yes probably better to go LTD you have some protection if God forbid it all goes ****

 

[mfgs]

As a director of the company you arent totally protected should things go wrong. From a tax point of view being ltd is advantageous and you will end up with more money in your pocket.

 

[macka09]

Thanks for the replies chaps. I’m just waiting for my accountant to give me a call so we can go over a few things. She has already mentioned normally she’d only advise it if my turnover is £30k or above. Obviously starting out I’d assume this is probably a way off for me to start with.

 

[Scott_D]

I am a sole trader and not vat registered.
If you get an useful info about when it’s best to go limited I would be interested to know

 

[Ben-gee]

I think the advantage to your own pocket is less than it used to be, they tightened up on it fairly recently.
You also have to make public quite a lot of information, that I personally would prefer to keep to myself.

 

[macka09]

I know I keep going on chaps but I’ve been sorting my insurances and on my documents they haven’t stated that I carry hazardous products like propane bottles. I’m assuming that they are classed as hazardous, am I wrong? They’ve been a nightmare.

 

[king of pipes]

Nope definitely hazardous bud needs to be on your policy that's why I went with Aplan they do all that for you , make sure your covered for any other trades you do tiling , carpentry small building work , electrical anything you do in your every day work . Kop

 

[macka09]

Sorry. I wasn’t very clear with this post. It’s actually my van insurance that have messed me about with the gas bottles. A-plan is who I’m talking to about my liability insurance with Zurich.

 

[king of pipes]

They will sort your van insurance to bud they did mine after a accident and no one would touch me they really saved me alot of grief so I could get on with work. Kop