How to setup in the U.K.

[Dan White]

Hi Guys,

How would one go about registering a computer repair business in the U.K. ?

I only mean the company registering side, liability insurance and so on, if you wanted to become VAT registered.

Any help would be greatly appreciated.

Kind Regards
Dan

 

[4ycr]

If you want to be an LTD company and VAT registered I would see a good accountant first. If you do not want to do that then go to your local business gateway. they should be able to guide you through it.

I saw an accountant recently and they said unless your turnover was more than £100K then it is not work becoming LTD unless you was a reduced liability

 

[SelbyComputerRepair]

When I started (sole trader) I simply went to the HMRC website and registered as such. You get a 'government gateway' account which allows you to fill in your tax returns online.

I used my own personal bank account as I mainly took cash. The bank will eventually pester you to open a business account that allows them to charge you for walking past the bank!

If you want to "look the part", then get a business bank account and voluntarily register for vat. But as there's no law that says you have to have either a business account or register for vat (until you hit the threshold) then you can trade just fine without either.

But do register at the hmrc for tax purposes.

 

[Moltuae]

That's one of the few advantages of living in the UK -- you can just start trading (as an individual) -- no business licence required.

Just need to keep the tax man happy by putting enough of your hard-earned pennies in his pockets, but you can decide if you need/want to go Limited and/or VAT registered later.

 

[wavey]

If you are going mainly business to business it would be worth registering for VAT to keep your clients happy, but if just residential don't bother.
You just become an unpaid tax collector.

 

[SelbyComputerRepair]

If you are going mainly business to business it would be worth registering for VAT to keep your clients happy, but if just residential don't bother.
You just become an unpaid tax collector.

Unpaid tax collector is 100% correct. Oh and don't be late with those payments, the vat man doesn't need a warrant or court order to kick your door in and seize your stuff for "investigation"

 

[bitznpcz]

Hi to another Cestrefeldian!

Did you study at Chesterfield college? I lectured there for a little while...

The benefits of becoming LTD have been cut from this month as the government have introduced a dividend tax. The rates are as follows:

Tax band Tax rate on dividends over £5,000
Basic rate (and non-taxpayers) 7.5%
Higher rate 32.5%
Additional rate 38.1%

Being VAT registered & LTD gives you some credibility when it comes to trading with businesses but as others have said, if you're starting off with the general public, I wouldn't bother. VAT returns and Corporation Tax returns are a PITA!

HMRC run some useful webinars which may help you decide what to do https://www.gov.uk/government/collections/hmrc-webinars-email-alerts-and-videos