IT_Master Posted June 19, 2009 Posted June 19, 2009 (edited) So I have decided to go sole trading. I think I like working for myself and have time for my family. I also got a company to use me as their field technician to do their jobs. Then I create my invoice and charge them;) I am thinking ways to get more companies to give me more jobs to do for them. Wish me luck with this business. Edited June 19, 2009 by IT_Master
ozzy Posted June 19, 2009 Posted June 19, 2009 IT Master, Word of mouth is the best advert you'll get, do a good job (and I'm sure you will) and schools will soon be talking about you and your cheap prices, exellent and prompt sevice;). Do'nt take on work you ca'nt do or work you ain't got enough time to fit in. Keep at least 40% of your income back for tax NI and expences. Most of all enjoy it. Hope it all works out for you. Ozzy
beeswax Posted June 19, 2009 Posted June 19, 2009 (edited) Keep every receipt, from the obvious, such as petrol to the not so obvious, such as did you have to buy a sandwich for lunch? It's a legitimate expense to claim against your income tax. Likewise any tools you have to buy you can set against tax. In my experience registering for vat is a last resort, not because I'm suggesting you do anything illegal, but because there's such a mountain of paperwork to get through (there was in my day at least) you'll end up spending almost as much time on your vat receipts as actually earning money. If you get a receipt for something and the receipt doesn't specify what you purchased (very rare these days, I know) write on it what it was for asap. And if you can afford it hire an accountant. Good luck Edited June 19, 2009 by beeswax The manners of plank
contink Posted June 19, 2009 Posted June 19, 2009 I can highly recommend a few tools to make your life easier. 1. Kashflow.co.uk .. very easy to use accounts package and as it's SaaS you can access it from anywhere to sort an on the spot invoice if needs be.. It even reminds you when stuff is overdue with a quick email 2. zendesk.com .. simple, easy to use and staff can email you in a way that transmogrifies them to support tickets. Much easier than trying to mess with multiple emails. Beyond that, be pro-active, not reactive.. Teachers are really bad at reporting problems. Find out who the hair trigger staff are who will report stuff gladly and get them on board. It will make your life a lot easier in terms of keeping them calmer (they see you respond) and you more in the loop about problems. Oh and as per Ozzy... promise small, deliver big If you need a spreadsheet I use to help me work out my costings to rates chargeable, let me know. It's saved me from undercutting my own costs and actually making enough to live on. 3
IT_Master Posted June 19, 2009 Author Posted June 19, 2009 Awww...you guys are huge help. I have a copy of Sage 50 accounts which Im using to do my accounting and my wife plays the accountant; she works at a bank:D And yes I wont eat too much that I can chew. I only want to pay bills and support my family. The tools I need now is to advertise for £0. The other company that is working with me says that he will help out as mush as possible and Im thankful for that. As I grow, ill tell my stories.
kmount Posted June 19, 2009 Posted June 19, 2009 Good luck, and remember there's plenty of us on here who'll help you if we can. Good lad
Michael Posted June 19, 2009 Posted June 19, 2009 You're very brave to go for it in the middle of a recession. It's always a learning curve and I wish you the best of luck.
IT_Master Posted June 19, 2009 Author Posted June 19, 2009 Time is tough but with a mind set I guess someone can accomplish anything in this world. Money is everywhere and Im gonna find it.
ITWombat Posted June 20, 2009 Posted June 20, 2009 The paperwork might be easier but doesn't a sole trader have unlimited liability? Hope you've got some professional indemnity insurance. What about VAT or don't you have to worry about VAT registration until your turnover is in the 10s of 1000s? As someone said this brave step at the best of times but doubly so in a recession but at least you've got one big customer lined up. Good luck.
beeswax Posted June 20, 2009 Posted June 20, 2009 I can highly recommend a few tools to make your life easier. 1. Kashflow.co.uk .. very easy to use accounts package and as it's SaaS you can access it from anywhere to sort an on the spot invoice if needs be.. It even reminds you when stuff is overdue with a quick email 2. zendesk.com .. simple, easy to use and staff can email you in a way that transmogrifies them to support tickets. Much easier than trying to mess with multiple emails. Beyond that, be pro-active, not reactive.. Teachers are really bad at reporting problems. Find out who the hair trigger staff are who will report stuff gladly and get them on board. It will make your life a lot easier in terms of keeping them calmer (they see you respond) and you more in the loop about problems. Oh and as per Ozzy... promise small, deliver big If you need a spreadsheet I use to help me work out my costings to rates chargeable, let me know. It's saved me from undercutting my own costs and actually making enough to live on. When I started as self employed in 1981 we were still using pen and paper.
IT_Master Posted June 20, 2009 Author Posted June 20, 2009 The paperwork might be easier but doesn't a sole trader have unlimited liability? Hope you've got some professional indemnity insurance. What about VAT or don't you have to worry about VAT registration until your turnover is in the 10s of 1000s? As someone said this brave step at the best of times but doubly so in a recession but at least you've got one big customer lined up. Good luck. I dont need to worry about vat until my turnover reaches over £68,000pa.
Brpilot99 Posted June 20, 2009 Posted June 20, 2009 The only thing about VAT as I have found ,is that some schools and companies prefer to deal with a company that is VAT registered. The perception is that you have more "substance" and particularly with schools .. pay your taxes. The government has started to sit on schools regarding "contractors" and the possibility that they dont declare the income from the jobs they do .... The paperworks not that bad, anyone with a calculator can work it out. You can voluntarily register without turning over the £68k ...
contink Posted June 20, 2009 Posted June 20, 2009 When I started as self employed in 1981 we were still using pen and paper. I was the same but it seemed a bit daft seeing as I started out working with computers ...
IT_Master Posted June 20, 2009 Author Posted June 20, 2009 Ammm....what should I do with all the receipts that I keep? And what are the purposes of keeping them? The first question is vital. Thanks.
contink Posted June 20, 2009 Posted June 20, 2009 Ammm....what should I do with all the receipts that I keep? And what are the purposes of keeping them? The first question is vital. Thanks. You store them for 7 years I believe... and obviously record them in your expenses ledger so you can process your accounts.. As to where you store them... Somewhere safe that won't get shredded, eaten by mice, or used for papier mache projects by children. Tax inspectors take a VERY dim view of anything like that...
IT_Master Posted June 20, 2009 Author Posted June 20, 2009 Ok. I can live with that. Anyone here knows how to use Sage 50 Accounts?
contink Posted June 21, 2009 Posted June 21, 2009 Ok. I can live with that. Anyone here knows how to use Sage 50 Accounts? I looked at it thanks to my wife being responsible for Accounting at one point and quickly decided it was too complicated. TBH, given what you're likely to be doing, it strikes me that Sage 50 is quite a bit of overkill. It's more for companies rather that sole traders, and even then for companies with more than 2 or 3 employees.
IT_Master Posted June 21, 2009 Author Posted June 21, 2009 O yes. It is complicated because I cant even customize the invoice. Im gonna try Quickbooks. If all fails...then its back to old excel and access for me.
contink Posted June 21, 2009 Posted June 21, 2009 O yes. It is complicated because I cant even customize the invoice. Im gonna try Quickbooks. If all fails...then its back to old excel and access for me. FWIW... the Kashflow.co.uk offer of 2 months free is worth taking up... Oh and they were offering a free year if you sent in your old accounts software for them to burn (sage, Quickbooks, etc...).
IT_Master Posted June 22, 2009 Author Posted June 22, 2009 Kashflow is a great software but will never pay for accounting software on a monthly/yearly basis.That's just waste of my money right there.
jamesb Posted June 22, 2009 Posted June 22, 2009 Don't know if its suitable for you, but what about GNUcash?
IT_Master Posted June 22, 2009 Author Posted June 22, 2009 Tried it but... not may taste. I'll stick with Quickbooks for now. Thanks for your help though.
apoth0r Posted June 22, 2009 Posted June 22, 2009 Remember you have to get the work first! Give us a buzz on the email mate, I've been side-tracked as of late Kind Regards
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