This page follows the guidance and advice available from HMRC
to those wanting to become self-employed and/or set up a business.
Each heading contains links to further advice
​

NOTE for those not living in the UK. It's extremely likley that your country's government have similar pages on the Government Website providing guidance for those wanting to start to run a business
​

Setting up: self-employment and starting a business
​

SETTING UP
​

How to get help with setting up your business.

SET UP A BUSINESS

Find out more about being a sole trader.
Check out rules and licences you may need
CHECK the rules you MUST follow if you:

• sell goods online
• buy goods from abroad or sell goods abroad
• store or use personal information

Where you work: Check what your responsibilities are if you:

• run your business from home
• rent somewhere to run your business from

​HELP: You can get help with setting up your business.

WORKING FOR YOURSELF 

When you start working for yourself - beyond "hobby income" levels (i.e. £1,000 gross turnover)  you will need to:

• report your income to HM Revenue and Customs (HMRC). 
• need to set up a business recognised by HMRC

​HELP:

• Contact HMRC for advice if you’re not sure whether you’re trading.
• Get help with setting up or growing your business, for example with funding your idea.

Set up as a sole trader: step by step

• Check if being a sole trader is right for you
  
• Choose your business name
  
• Check what records you need to keep
  
• Register as a sole trader
  
• Check what taxes may apply to you
  
• Plan for your tax bill
  
• Get help and support
  

​​WRITE A BUSINESS PLAN 

A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.

Read example business plans on the Bplans website.
Download

• a free business plan template on The King’s Trust website.
• a free cash flow forecast template or a business plan template on the Start Up Loans website to help you manage your finances.

GROWING YOUR BUSINESS 
​
Plan for growth

• Get extra funding
• Increase sales to existing customers
• Attract new customers
• Improve your products and services
• Develop new products and services
• Hire and train staff
• Work with a mentor
• Get help and support for your business
• Apply for a Start Up Loan for your business​

GET HELP AND SUPPORT FOR YOUR BUSINESS

• Get help and support for your business
• Apply for a Start Up Loan for your business

Set up a limited company: step by step
​It's not that difficult (I've done it!) if you work through the process methodically

• Check if setting up a limited company is right for you
• Choose a name
• Choose directors and a company secretary
• Decide who the shareholders or guarantors are
• Identify people with significant control (PSC) over your company
• Prepare documents agreeing how to run your company
• Check what records you'll need to keep
• Register your company with Companies House
• Manage your Corporation Tax

EMPLOYING STAFF FOR THE FIRST TIME

For those artists who need help to produce and/or sell their artwork. You may wish to employ people - on an agency basis or on a contract - and you must observe the law relating to employment.

• Recruiting and hiring
• Acas guide on hiring staff
• Employment contracts
• Contract types and employer responsibilities
• Employers' liability insurance
• Jobcentre Plus help for recruiters
• National Minimum Wage and National Living Wage rates
• Get help and support for your business, 
  
• PAYE and payroll for employers, and 
  
• Employing someone to work in your home

Employing staff for the first time

TAX AND REGISTERING

YOU CANNOT IGNORE THIS!!

• You need to understand how to create a business entity associated with your art business. 
• In respect of tax DO NOT IGNORE IT - because it seems too difficult!! You
  
  • EITHER need to understand the tax you are liable for
    
  • OR you need someone who will look after your tax affairs for you - and you will need to pay them if you employ a tax accountant.

• Set up as a sole trader: step by step
• Set up a limited company: step by step
• Set up a business partnership
• Setting up a social enterprise
• Register as an overseas company
• Unincorporated associations​

BUSINESS TAX AND VAT

Most of what you can find below only applies to those artists who start to get rick quick (it does happen) and need to employ an accountant for good professional advice on tax because there annual turnover has just gone through the roof!
Not paying attention to tax just leads to big unpaid tax bills and even bigger penalties

Pay HMRC

• Paying HMRC: detailed information
• Pay your Corporation Tax bill
• Pay your VAT bill
• Pay your tax bill by debit or corporate credit card
• Pay your tax bill by Direct Debit​

VAT
The VAT Threshold for mandatory registration is £90,000 turnover (i.e. the money you take from selling art)

• Register for VAT
• Sign in to your VAT online account
• Check a UK VAT number
• How VAT works
• Sending a VAT Return
• VAT rates

​Company Tax returns

• Company Tax Returns
• File your accounts and Company Tax Return
• Accounts and tax returns for private limited companies
• Your limited company's first accounts and Company Tax Return

Capital allowances

Only applicable if your turnover - or the type of art your make - makes it worthwhile to be claiming capital allowances and producing more complex accounts and tax statements

• Claim capital allowances
• Work out your writing down allowances
• Capital allowances when you sell an asset

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