This course helps you set up your business as a sole trader.
Course Basics
This course is designed to help you understand your first steps in self employment.
We have tried to cover most of the elements necessary for you to make a success of your business as a sole trader; from set-up to future growth.
The course includes some useful sections on the construction trades, working from home, allowances and tax, and will give you great start-up hints and tips to get you up and running in no time.
To start with, the first lesson will cover the other structures you might consider – just in case you’re not sure. If you have come straight to this course and have not completed our introductory ‘starting a business’ course.
Unless you already have a business and want some of the hints and tips, I’d strongly recommend doing the ‘starting a business’ course before doing this course. Also;
- If you’re considering, even remotely, a Limited Company or a Partnership construct then complete the Starting Your Business course first.
- Do the Business Planning Course before you commit to your business start-up. Time spent in planning is seldom wasted!
Click on the down arrows in the right side-bar to expand the course content as individual lessons.
Let us get on with the course, remember you can come back at any time once you have registered and pick up from where you left.
Starting Up
This lesson identifies the factors behind choosing the right structure for your business.
As we discussed in the type of business course, if you’re self-employed you are basically a sole-trader. Is there a good opportunity for me?
Letting the taxman know you’re now self employed is required under law – this is how you get started and ready to tell him!
As a self employed person or a sole trader, you can use your personal accounts to run your business. However, you must keep your personal and business accounts separate – here’s how.
What records do I need and what do I need to report and how?
Expenses, Tax and National Insurance
What can I claim against the tax I pay from the business? Can I still claim some expenses on a personal basis?
How do I account for vehicle expenses? There are 2 key methods – actual costs and fixed costs. Both methods must be adjusted when using a company vehicle exclusively for the business, using for business and personal use (say your own car).
Woah – this sound complicated. Well its not and these ‘capital allowances’ are an important aspect of your business finances. Capital expenditure is the money you spend on items you would expect to last several years and they are referred to as assets – because they have a resale value.
There are different types of NIC – which types or types must I pay? Can I get exemptions?
Before you start there will be preparatory expenditure – keep a record, some get tax relief.
Entrepreneurs’ Relief means you’ll pay tax at 10% on all gains on qualifying assets.
Self employment Administration
This section contains practical help on things like ‘How do manage my time?’, and ‘where can I get software to help me with my business?’
Some important tips like ‘Cash is King!’ protecting you cash flow, why you should ‘know’ your customers, and some simple financial efficiency measures.
Looking to the future
Finally on this course we look at the future. At some point, you might want to change your company structure – its not that hard.