vallumlj

My fiancé started making cakes a few months ago as a hobby but now it's turning into more of a business. She is also started her maternity notice mid August and wants to do the cake business full time.

What should we do know regarding tax etc where and when should we register her business.

What can you claim and what can't you.

Any advice would be good.

Thanks

David Lock

Plenty of places on Internet to find all you need to know.

Chip

http://www.smallbusiness.co.uk/chann...artup-funding/

See an accountant and he will guide you through the process.

AndyC_772

iTrader: (2)

...like Scoobynet!

She'll need to decide whether to be self-employed or whether it's a good idea to start a Ltd company; an accountant should be able to advise on the pros and cons. Both have quite different tax liabilities and reporting requirements.

I work for myself about 2 days a week, and worked out that I was better off as self-employed rather than taking on the accounting overheads of starting a company. I registered with HMRC (5 mins on their web site), sorted professional indemnity insurance (essential, and expensive), and got a good solicitor to draw up some terms of business (also essential, given that my line of work could give rise to significant liabilities if I get something wrong). My car is already covered for business use, but if hers isn't, and she plans to use it in any way connected to work, then that's probably about the first thing to address.

Other than that, I just need to keep copies of invoices for everything I buy for business, and I'll be getting my accountant to do this year's tax return - more so I can see how it's done rather than because I think it'll be "difficult" as such.

I've not regretted it for a moment, though I've been working much longer hours than before. Work comes in bursts; I can be very quiet for a few weeks, then be hit by customers all wanting stuff done yesterday, and I wasn't really prepared for that, having worked as a full-time employee for the last 14 years.

Not having to go into the office for 5 days on the trot more than makes up for it, though!

scoobeenut

These people have lots of useful information http://www.businesslink.gov.uk/bdotg/action/home I've been self employed for the last four years and its all fairly simple, just make sure you keep good records of all sales and purchases etc. You don't have to use accounting programs just basic spread sheets will record all transactions.

Mikee

Not tax related but a quick word of warning- our friend had a similar idea and after she had her little one went into making organic baby meals. From a fresh foods point of view the rules and regs are HUGE. She was told she needed to keep a sample from each batch frozen. Also had to have regular house inspections for health and safety reasons. Please look into what is envolved in producing food to sell before you commit to anything.

Hope all goes well.