Are you starting a side or home-based business while on furlough? Here are some things that Choice Bookkeeping think you need to know from a business perspective!
Deciding on your Company structure
Do you want to be a sole trader or a Limited company? There are different responsibilities with each, and it is important to know the difference. Here is a guide we produced about them, which might help make the decision easier.
Registering with HMRC
You will need to register with HMRC – if you go down the sole trader route, here is what you need to know, and how to register
If you would like to set up as a Limited Company, it is a bit more involved, and advice is definitely recommended first. Contact us to discuss the options.
This is very important, especially if you are selling products. You will need to check what insurance you need, and make sure you have it in place before you start. If you are using your home and car for business purposes, you will need to check you are covered under your existing policies too!
Bank account for the business
A bank account is a must. If you are a Limited Company, you must have a business account. If you are a sole trader, you can use a non-business account, but it is recommended you don’t use your ordinary bank account. You can set up a new business or personal account online through Tide – it is fast, easy to use and all done online.
VOIP phone system and Broadband?
An alternative to using a separate phone is to have a VOIP phone system set up. This is where you can have calls routed through an app, rather than direct to your phone. It means you can have a different landline or mobile number (or both) for the business, but still use your ordinary phone. You might need to think about upgrading your Broadband too, especially if your new business is internet-based. For more information on how that could work for you, message bONLINE here.
Do you want your physical (ie home) address everywhere for the new business? Eg on eBay if you are selling online? There is always the risk that you will end up people coming to the house, or advertising to burglars that you may have valuable stock at home (even though you might be drop-shipping it). A great option is a virtual address. An address you can use where your mail is sent, which can then be forwarded on to you. You can also use it as a returns centre. We recommend Expost, who are specialists in this area!
Now is the time to think about advertising too. There are so many different ways you can advertise your products and services. Apps such as UDDR, websites such as Spotlight Newport, and of course using social media such as Facebook, LinkedIn and Instagram.
If you would like help in setting up your new business in Lockdown, whether it will become your main income, or a sideline business, Mark and the team at Choice Bookkeeping are on hand to help with all your bookkeeping needs. As an affordable alternative to an expensive accountant, speak to Choice Bookkeeping for a free telephone consultation to see how they can help you and your business with all your bookkeeping needs. From filing of self-assessment returns, company accounts, setting you up on the right accounting software such as Xero, and so much more. With offices in Monmouthshire and Pembrokeshire, they cover all of South and West Wales and the surrounding areas. Give them a call today on 01291 690646