Steps for going self-employed

[sakis]

Hello,

I currently work at a factory as an assistant engineer/ water manager, I am thinking of start working part-time as self-employed and if I see that I can build a reputation then I'll quit from the factory. I had my own plumbing/airconditioning company abroad for 15 years and then I moved to the UK for personal reasons. So, I would say I know the job pretty well, I am confused though with the steps that I need to follow to be legal.
I don't plan to be VAT registered as initially, I doubt that I'll meet the threshold of £85,000, are there any benefits to register volunteered. My understanding is that I don't need to register until October 2020, if I start now. Is this correct? If it is the case, how do I prove that I am legal to work? Can I get public liability insurance if I am not registered? Should I file a self-assessment tax return in April 2020 or it won't be needed if I am not registered? Do I need a business account at this stage? As most likely at the moment I'll be doing random small jobs. Anything else that I am missing? it seems to me odd to start trading with only paperwork the liability insurance.

And I final question, I am a very handy person, i.e. I am been asked to replace a concealed cistern. I need to cut the plasterboard to do so. Should I quote only for the plumbing and ask the client to find somebody else to repair the plasterboard or is it ok to quote it as a full job? Cistern replacement, plasterboard replacement, painting? Are there any disadvantage doing plumbing and handymen jobs at the same time?

Thank you for your time, I know I have too many questions I hope I don't confuse you

 

[centralheatking]

Its a great way to start up, keep the day job and do two jobs until the day job gets in the way, even see if they would make you redundant. If your competant in other areas then its a bonus. Just start up under the radar and you will know when it gets serious enough to go official. Keep ALL your reciepts fuel, phone stuff.
Word of mouth is a slow but cheap way to gain momentum.
Public Liability insurance is essential as is a name for your business.
Get some flyers printed to leave at jobs and with contacts.
If you need help just ask on here, good luck centralheatking

 

[sakis]

Thanks for the info

It is truth, word of mouth is powerful. That's how I start thinking of it, I helped some neighbours and friends and now they are knocking our door whenever they have a problem.

Any suggestions of how to short out the fuel receipts, at the moment I use our private car and not sure how to split the receipts between plumbing jobs and private use?

 

[Andy-36]

Any suggestions of how to short out the fuel receipts, at the moment I use our private car and not sure how to split the receipts between plumbing jobs and private use?

Make sure you have business cover if your using a private vehicle, Not worth the risk or hassle if caught using incorrect cover.

 

[sakis]

Make sure you have business cover if your using a private vehicle, Not worth the risk or hassle if caught using incorrect cover.

We do because my partner is using it time by time for business trips, so we are covered on this aspect

 

[centralheatking]

Fuel bills just dont be greedy, same as phone etc the tax have a formula which if you are honest no problems. Just go for it
I did in 1982 in just the same way...never looked back...now there is
UKPF I did trial and error and loads of work with an old plumber
...like old in 1982 who was kind made me work but taught me plenty
inc. lead work off you go and ask for help centralheatking

 

[JCplumb]

You can claim 45p per mile as a business expense rather than trying to work out how much diesel was for work use. Can you offset vehicle depreciation if you also use it for domestic travel?
I do my own books for every Sunday and I estimate how many business miles I've done that week while it's still fresh in my head, also no depreciation / repairs etc. as it's covered in the 45p/mile so really simple and no having to keep business fuel receipts.
I worked it out a while back and I got it to about 8p per mile so 45p is a good allowance.

 

[Murdoch]

Keep all bills that pertain to business expenses, whether they be costs of running the business, or parts for resale to your customers.

HMRC May ask for a mileage log so keep notes and miles on a spreadsheet

Then you need to save 30% or 50% of your second income for your tax and class 4 NI. I do this monthly and buy premium bonds.

If you start this year, your first tax payment for this financial year will be January 2021 and I would say use an accountant to ensure you do everything you need to AND claim everything you can too

 

[Chuck]

I am thinking of start working part-time as self-employed...

Your local FE College will probably run 'Starting your own business' evening classes. These are a very inexpensive way to pick up the basics.

 

[OffshoreGas]

I’m doing the similar but with staff, it’s not too bad until you come to employ people.

Waste carriers license is another one.

Public liability, professional indemnity, tools in transit.

Check your insurer recognises your qualifications as some have clauses saying your only covered to do work your competent to do.

You need a method statement/risk assessment for any job. If not and there is an incident the HSE are not fun to deal with.