How do I make my business official (tax etc)?

I started selling goods on ebay last year and have now opened an online store. I wasn't earning enough last year to register for tax but will do this year. I've been on the hmrc website but it's all so confusing!





Can someone tell me what I need to do to be within the law and when I have to do it by? Do I need to register my business or just register as self-employed? I have records of sales etc since January but do I need these or do I just start everything anew at the beginning of the new tax year?





And can anyone tell me how much this will all cost me? I should be earning around £700 a week. I won't be hiring anyone yet so it's just me. Some advice would be greatly appreciated. Thanks.

How do I make my business official (tax etc)?
Business Link is a very good source of help. In addition, HMRC run free seminars on all aspects of tax, NI and VAT. Check their site for events in your area. You can ask the people running them all sorts of questions. It makes it much clearer than trying to wade through the information on their site.





Good luck!
Reply:Regretfully, you may be too late.





When you start buying goods with the intent to sell them and make a profit, you are running a business, and you should have registered with HMRC (Her Majesties Revenue Centre, formerly Inland Revenue) as self employed.





If you do not register as self employed then, you must do so within 3 months of ADVERTISING YOUR PRODUCTS, irrespective of your first sale. If you do not, then you may be liable for penalties from the HMRC.





Unlike Companies, which a hugely different thing and is quiet complex, Businesses do not require to be on a register. So long as the owner is registered as Self employed, then all is legal. There is no minimum threshold you need to reach or anything.








The bad news is that you might be too late to be 'within the law', but the good news is that it does not sound like you were 'dodging tax with malicious intent', it sounds more like a simple misunderstanding, and is quiet a common event.





First thin Monday Morning, call HMRC registration line on 08459 15 45 15 to register, and ask them ant questions you may have.
Reply:Google Business Link. They have guides on Tax, VAT, business rates, selling over the Internet, who you need to inform and much more. To make it official, you have to contact hmrc. By phone is good enough. No interviews or anything like that. You do have to make sure you keep paying National Insurance if you want a state pension when you retire. I pay my NI by Direct Debit, so I never forget it :).


You will have to decide what date to start and fill in an income tax form once a year. All this info is on the Business Link website. Good Luck!
Reply:You don't have to register. You should tell the IR you are self employed. You can register for small business exemption from national insurance. Keep good records and a seperate bank account from your personal money. Complete self assessment forms on time. SDome expenses are allowable for tax and some aren't (like entertaing UK customers, travel to and from your place of work) You may have to register for VAT but the threshold is quite high. If you buy a lot of vatable goods tghan it may be worth considering.


It is usually best to have your year end coinciding with the fiscal year (5th APR) but you can have it anywhere. You can claim expenses prior to the start of your business year. Maybe employ a part time experienced bookkeeper, say to do your books once a quarter, he/she will hiopefully have as much experienc %26amp; knowledge as an accountant (but a lot cheaper) I would not rely on the IR for info/help they are split up into spo many offices it is hopeless.