Nails - new business start up questions help!

[Suzukisvk3]

Hi everyone my name is Lisa and I am currently studying to become a nail technician which I am very excited about and thoroughly enjoying.
I plan to do this from home around my current commitments really as I love the profession but also to do something for me which I am sure many of you will understand.
I do have a question regarding the business side. I currently work already so I believe that I will need to set up as a sole trader where I declare my income and outgoings yearly to pay my rates. However, I was wondering if someone could help me with the best records to keep. Should I open a separate bank account and pay in my takings and make payments for supplies from the same account to keep things transparent. Or do you think I will be fine using my normal bank account if I keep adequate records.
As its cash I am finding it difficult to work out how to ensure HMRC will be satisfied that what I have said I have worked is true.
Thank you in advance.

 

[pure]

I think many sole traders only deal with cash and this is something HMRC will be used to. You don't need a separate bank account but it can be useful. Keep records of everything you spend for the business (expenses) and all money you make (income). I always write on my client record cards what the client has paid, I also record it separately on a spreadsheet. These, along with my diary should all match up so if ever I did have an HMRC inspection it should all tally and be above board.

Despite their reputation HMRC are very helpful if you were to call and ask any advice. They also run free workshops which are meant to be very good.

 

[Suzukisvk3]

Thank you, that does back up what I thought. I will need to use my earnings to help pay for general bills etc so will ensure that I keep a thorough record of my monies in and out as sadly the profit will not be sat there in an account at the end of the year (I wish) however, I will ensure that I do budget for my payment to HMRC once a year. Thank you for your help. As this is a second job in essence do you know what the tax rate would be on any profit? I am also guessing that in my first year of trading as I will also be studying further I doubt very much that I will have any profit but this should show in all my records.

 

[pure]

Most new business don't make a profit in the first year and any loss can normally be offset against the following year. The tax rate for you will depend entirely on your other earnings, probably best to clarify that with HMRC.

 

[nortti]

I seen this question asked also in another part of the forum, good to see so many new people coming into the industry, hope it all goes well for you.

The Association Of Nail Technicians (ANT) have a start up guide which might give you some pointers and help on how to get set up.

http://aont.uk/startupguide.html

 

[jodie077]

I seen this question asked also in another part of the forum, good to see so many new people coming into the industry, hope it all goes well for you.

The Association Of Nail Technicians (ANT) have a start up guide which might give you some pointers and help on how to get set up.

http://aont.uk/startupguide.html

hi i am starting up soon aswel i found that link very helpful thankyou x

 

[loulou28]

If its a second job it would be 20%