No Incentive for small business start up

[Andy from Workshopshed]

If you can afford to do it as a hobby thats the way to stay..unless of course its a paying hobby, then it becomes a business and you have to inform H&M Revenue within 3 months or be fined and probably get a ridiculous tax demand to teach you a lesson.

The trick to get the revenue to look at your hobby as a hobby and not a business is to make a loss. The last thing they want to do is to goto a lot of effort so that they have to pay you...

Some thoughts on this from a non expert: http://fleacircusdir.livejournal.com/4565.html

I'm a little disapointed that the company and union did not advise you all about the tax implications of your situation.

 

[reno]

...when I went along their sole purpose seemed to be to dream up reasons why they couldn't help.

That sounds a bit like business link. Brilliant at telling you they can help with this and help with that but when it comes to it they've never seemed capable of doing anything. I know a few companies that have had them in to see what they can do to help in sales and marketing and in each instance after showing initial signs of promise they have ended up being about as much use as a fart in a wind tunnel!

Cumbriasteve
When I registered as self employed last year the accountant I used sent my registration form and class 2 NIC form to HMRC at the same time. 6 weeks later I got a bill for my class 2 NIC - HMRC had managed to loose the form...

Cheers, reno

 

[mike os]

I found careers wales to be very usefull..... perhaps it just depends on who you get?

 

[blackolive (Ste)]

I sympathise with you Steve, Im in a not too dissimilar position where I can take a lump sum but am a bit too young to retire yet. Ive spoken with a number of people who have advised me against even trying to bother setting up a small business. so trying to look for a job that will pull a bit in and top it up from my lump sum, but the advent of recruitment agencies and online job websites means that you dont even get the courtesy of reply when applying.

this country is becoming a joke.

 

[cumbriasteve]

I sympathise with you Steve, Im in a not too dissimilar position where I can take a lump sum but am a bit too young to retire yet. Ive spoken with a number of people who have advised me against even trying to bother setting up a small business. so trying to look for a job that will pull a bit in and top it up from my lump sum, but the advent of recruitment agencies and online job websites means that you dont even get the courtesy of reply when applying.

this country is becoming a joke.

It depends how much your lump sum is, mine was a fair amount, I left in October so last year I hit the 40% tax bracket and because I deferred half of it to this April I have hit the 40% bracket again.

You could however save money by starting a business, essential equipment can be claimed against and a host of other ways to work it, with the right accountant you could pay nothing for a year at least.

I am just too long in the tooth to bother with it all.

 

[brookie456]

this country is becoming a joke.[/QUOTE]

Nope, lets start MigBank. cumbriasteve as chairman, all contributors to the forum as executive directors. Get 1% of the bank bail-out fund, lend it out (some win, some lose), pay yourself an obscene amount, and if there's a shortfall, ask the powers-that-be for a top-up. I've never seen a business sector so over-rate it's own contribution to the economy as the one that's ruined it. Am in the same situation mate, trying to pay the bills as the prospect of redundancy looms, more red tape...

 

[SC_BK]

Not going to bother now, just had enough of the hassle and don't need any of it, if I was dependant on a wage from the business I would of course go down this route.

Each to their own, I'm 23 and have been self employed for over 4yrs and manage to stumble my way through a tax return once a year
But then again I don't have big wads of cash lying about.....

 

[brightspark]

Each to their own, I'm 23 and have been self employed for over 4yrs and manage to stumble my way through a tax return once a year
But then again I don't have big wads of cash lying about.....

it says on your profile self unemployed do we take it u only work on the fiddle .on the pan crack

 

[cumbriasteve]

Each to their own, I'm 23 and have been self employed for over 4yrs and manage to stumble my way through a tax return once a year
But then again I don't have big wads of cash lying about.....

I doubt many people do have big wads of cash lying about, my redundancy is invested over a 5 year plan to replace the wages I won't be getting, I also receive no other benefits whatever and will be be damned if I am going to work at a £6 an hour job after working for over 40 years, serving an apprenticeship and never being unemployed, I would rather do voluntary work if I find the days too long.

The tax return is no big deal regarding difficulty, especially the online version, what is a big deal is the H&M Revenues short sightedness regarding redundancy income, coupled with a high taxation rate (40%) that hinders and restricts an attempt to run a small business.

 

[Chickenjohn]

The biggest threat to the freedom of UK citizens - including running their own small business is undoubtedly the EU.

This video nicely sums up why we MUST leave to EU if we in the UK are ever to regain our freedoms again. (And than includes Ireland, Scotland and Wales). It is frightening!

http://www.youtube.com/watch?v=JanzfoSQCFA&feature=player_embedded#at=24

We are ruled by a Bureacratic EU dictatorship. Where Hitler failed with his U -boats and Panzers, the EU is winning with its directives.

 

[jugs]

The biggest threat to the freedom of UK citizens - including running their own small business is undoubtedly the EU.

This video nicely sums up why we MUST leave to EU if we in the UK are ever to regain our freedoms again. (And than includes Ireland, Scotland and Wales). It is frightening!

http://www.youtube.com/watch?v=JanzfoSQCFA&feature=player_embedded#at=24

We are ruled by a Bureacratic EU dictatorship. Where Hitler failed with his U -boats and Panzers, the EU is winning with its directives.

Some emotive statements there chicken, worthy of the sun or daily mail, shame to spoil a good story with fact.....but.

That film is 7 years old & is a wonderful example of twisting the truth for political ends. while many of the facts are true they have been slanted.

eg; The film states "the EU have taken 100% control of our environment" what they have done has forced a very reluctant British government to clean up its act .

result =

it is now an offense to dump untreated sewage into water courses & sea, our great British government fought for 6 yrs against complying, why

The EU forced us to reduce pollution from power stations factories & cars - our great British government fought against those as well, why

We now have to recycle instead of land fill or sea dumping - our great British government fought against that as well, why

Do you really think we shouldn't have done those things ???


It mentions EU corruption, which is rife,......... as it is in our parliament. So let us stop ALL corruption, (that includes us doing cash jobs & not declaring for tax )


Because of us wanting more cash for less work & at the same time wanting more more more @ cheap cheap cheap, + investors wanting crazy growth rates, our industries are now in the far east, so sadly we cant be independent any more.

 

[pidgeon chit welder]

Cunbria steve you'd also be liable to capital gains tax on the business if you handed it over to a youngster .. my son was such a young person with an older guy training him in the end Ray closed it all down and sold everything offf..like you said too much hassle.

You could still play though and at the end of a year declare a sales income from one off items but clearly state it is inot a business just a profitable hobby and see where it gets you ..always declare any income above what is allowed so you can sleep with both eyes closed.