Tax, registration, insurance - all the scary stuff

[rach]

not me..havent heard anything from them

[julieann30]

Hi all, this is quite scary, doing all this to start your own business, I advertise in our local town directory and so far i've done loads of birthday cakes, 1 christening cake and 4 wedding cakes and have two more to do for July, as i was doing them in my own home i didn't realise i had to have a health and safety check and as for tax i didn't think i was doing enough cakes to have to pay tax so i'd better start making some enquiries. So how much would you say it costs to get started with your own business.

Julie

[dkcrooby]

Hi Julie,

I'm doing what you're doing although am just waiting to re-do my website before i advertise in our local directory. I think although you don't have to pay tax if you're earning under a certain amount, you do have to register. I haven't done so yet so I suppose i should do it soon. An inspector should be coming to assess my kitchen sometime but as i only do cakes every now and again, i'm not a priority.

Look forward to seeing some of your work in our gallery?!

Shianne :-)

[marjycat]

Hi Shianne

Caught you online again! I'm about to finish up for the weekend and prepare for big 30th party tomorrow night! Anyway, the point earlier about registering for tax if you buy in something to sell at a profit, I wondered if I'm only selling at cost of materials purchased plus something for my time, I would need to register. Anyway, it's a bit more complicated for me apparently as I can't register self-employed as I am currently full-time employed at the moment! On the Environmental Health, don't know if every local authority is different, but apparently I only need to advise them if I'm involved in production for more than five days in every five days and that is a bit difficult to monitor for them. I do have insurance as I think that's essential nowadays - taken out through the BSG for very little outlay, but nice to have, and I always put labels on cakes/boxes about not eating the decorations, and best to eat before.

Marjorie

[marjycat]

Sorry, I should have said more than five days in every five weeks!

Marjorie

[rach]

yes that is correct marjorie..but you will prob find you still need to advise them...and have a check..I had to..so funny he was saying do you use your kitchen more than five days in every five week or something and he was shaking his head...lol...for me to say no...cos if you go over that it is heavy use and you have to go into more formal stuff...please dont ask me wot though..He said for wot u are doing this is fine...I must admit he was soo helpful..and its good to know that everything is in place..

I also I got my insurance through blackfrairs ..very good..I have produat and publi liability all for £68 but that is for both my cakes and face painting
ALso as soon as you take any money from cakes you should contact inland revenue ( and if you advertise or hand out cards etc) cos if you havent and get caught you could be fined...You dont pay anny tax if u earn under I think £4800 per annum..

Hope that helps

[dkcrooby]

Julie,

We now have 2 Julie's on the site, so this one's for JulieAnn!

Do you have a website or do you only advertise in your local directory? Do people want to see examples of your work before they order from you?

I'm asking because i'm wondering if it's a good idea for me not to give out my web address at the moment till i've got more photos of cakes. Perhaps people look at my site and think there aren't enough cakes and therefore don't order.

Where do you live by the way?

Shianne

[rach]

i am hoping to have my website up and running by monday...fingers crossed.....let u know when it is

[julieann30]

Hi, Shianne,

No i haven't got a website, i just advertise in my town local directory. My business name is Julie's Cakes. I would like to get a website but as i don't know very much about computers i wouldn't have a clue how to do one. Yes in answer to your question, when they phone me up, they usually ask some questions, the price and then i invite them to come around my house and have a look at some photos, then we discuss what they want.

If its a novelty cake they want i always say i can do it then i freek to my hubby, and say how the hell do i do this, lol but as yet i haven't had any problems i just stress out about it.

I'd like to send some photos of my cakes into the photobucket but i don't know how to do it. Maybe i should ask Alison to give me step by step details.

I live in Devizes, Wiltshire been here about 2 years before that i lived in Cardiff, South Wales.

Anyway speak soon

Julie

[emmascakes.co.uk]

I've just received a tax return form (book!) through the post and am hopping mad about it. It's a mammoth document and I rang them and said I thought I didn't have to worry as I earned less than £4530 (or whatever it is). They said I still had to fill the form out. I had abit of a rant saying I must have earnt £40 or something once I take into account everything I've bought etc. Rant didn't help - although he did say if I hadn't formally registered they might have been able to write it off. So I'm furious that I registered now - where's the incentive? People who sell stuff at car boot fairs should register etc. as well.

Anyway, aside from being mad, I have no idea how to fill the dratted thing in and haven't kept receipts for everything I've bought so any tips would be great. Obviously I can't afford an accountant and unfortunately don't know one.

[rach]

Well Emma got mine through today aswell.....agian I have some receipts but not everything and I have made nothing once I take into account all the ingredients and face painting training etc in fact I have made a loss......

I havent had a goos look at it yet..but I know an accountant who will give me some pointers as he does my hubbys accounts....so I will keep you posted on wot I find out..When I spoke to him about htis last year he said dont worry you have only about 2 paragraphs to fill out..

Well we will see..lol

[emmascakes.co.uk]

Thanks Rach. I'm worried about receipts etc. I have kept a few shopping receipts, but nothing like what I've actually spent - things like ebay purchases don't have receipts. Do let me know if you get any useful pointer as I'm very worried about it.

[Alison]

My book also came through last week - gulp - that was a shoker!!! I was expecting a few pages. Apparently though you can fill in on line and it's much easier - or so they say.

As regards to receipts - I don't want to lecture but it is really important to keep every single one - if you haven't got one for what you are claiming for it can become very messy.

What I do - if it helps anyone , is get a huge lever arch file - I imagine a normal folder would be ok for most and at the start of every month pop a label with that month on the front. Then simply all my recipts and invoices, sales invoices , everything gets put in to that. A new month I start a new file.

With regards to ebay purchases - do ask for a receipt , with a larger seller you will get a printer invoice - with a smaller seller a hand written but it's all the same

I hope this has helped a little bit - Im no genius when it comes to tax myself though but know how important it is.

Like Emma says though - doesn't give you much insentive does it when your honest then you have that put in front of you!

[dkcrooby]

Emma, how did it go filling out your tax return form? i still haven't registered yet so it's always on the back of my mind.

[rach]

I DID MINE ALL ONLINE..MUCH EASIER.........oops sorry had me caps on..lol...