Resolved Question

How do I start a business?

If I were to start a housecleaning business in the morning must I register somewhere to get VAT numbers and stuff. I mean if I just went to people and started to clean their houses and they go to pay me is it illegal if I havent registered the business yet?
Do I need everything sorted before I start the first day of work? business insurance? tax?

or can i just start working and after a short period i'll know if its to be a real business and after a month go get those things?

I was going to target auctioneers. tell them i'll have the houses they need to sell looking absolutely spiffing?

can they legally hire me?

Best Answer - Chosen by Voters

you will not need to form a registered business unless you want to, although this brings extra tax responsibilities. for more info see http://www.newbiztips.net/legalstructure…

you will however need to register as self-employed with Revenues & Customs within 3 months of starting working for yourself. they will then send you a tax return (aka self-assessment) each year to complete to pay any tax due. when you register with them they will also sort out your national insurance contributions. http://www.hmrc.gov.uk/selfemployed/iwtr…
and as you are offering your services to other companies it will not be illegal for them to pay you.

you will only need to register for VAT if you earn more than £68,000 for the current tax year (2009-2010) (note this figure changes each April so if you get anywhere near it keep a check on the threshold). however if you are selling your services business-to-business then you may wish to voluntarily register for VAT so you seem more professional & appealing to the other business, likewise you would also be able to claim back VAT on cleaning products, equipment etc which you need to buy http://www.hmrc.gov.uk/vat/start/registe…

best of luck with your business ideas!
Rebecca

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Other Answers (2)

• you dont need to register anything.
  all you really need is to keep records of expenses related to your business and receipts to prove.
  you will also have to keep a record of money received and give receipts for it keeping a copy.
  then declare it at the end of the tax year. you should check out the cost of third party insurance though.
  as accidents happen and you could be sued if they do.
  check with the tax office they will tell you what you need to, do for tax purposes anyway.
  they used to keep booklets for some types of business start ups.

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• I think you do have register having a business. I was told all about this stuff but I can't remember a lot of it but I did get help from Business Link and you can do these workshop things with them and they give you advice and it's all free because it funded by the Government. This is the link to them.

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