Business idea but need some help

[90Mike]

Hi folk's my wife could do with some advice on starting up a business  :roll: and its no good her asking me any more i havent got a clue  :? to cut a long story short she wants to start a home cleaning business she has tested the water and looks as though it could be quite profitable in the right area  :D to do this we would require a small loan to start up for a small van getting it sign right and advertising door to door which leads to question number one
1.business loan or normal loan would not need any more than 5k
ok so now we are up are running
2. What happens reguarding tax/vat and then the tax man?

any help appreciated i know its a bit of a tall order and i done want to take too much of your time but any quick pointers/help would be much appreciated :)

mike

[Lord Shagg-Pyle]

Not to sure on the loan side of things, but I think there is a level that can be earned before tax is paid. Perhaps somenone who is elf employed can advise better on that.
One thing to consider us has she had a Criminal Records check done? Some customers/companies may ask before she starts working for them.

[sleeplessparadise]

Your wife will need to look into insurance as well for public liability, it shouldn't cost her too much but she wants to cover herself for accidents etc. in people's homes. Tax, she would be classed as self employed unless she is setting up a company and then becoming an employee. If she is going self employed then it's a case of filling in a tax return once a year and the tax office will assess her from that. She needs to keep all fuel receipts, as well as any receipts for other equipment she buys for the business. Ermmm I am sure there is a lot more to it but that's all I can remember at the moment.

[muddyjames]

Hi Mike.

I am afraid I have no idea about these things but shall watch the topic because I have a few business ideas I might like to do one day but, why buy a van? how about using your landy for now?

another way wouldbe how my Dads cleaner used to operate and that was use the owners own hoover etc. That way they buy all the cleaning stuff (more profit for you) and have what ever vehicle to run about in as you dont need to carry anything  ;)

Does she own a car at the mo? would that not be suitable for now until say a year down the line it is working out and then buy a van? I believe Molly Maid has blue corsa's for thier worlk. See, thier blue cars with pink writing has been etched onto my brain and I have only ever seen them driving about!! :lol:

But at the end of the day mate, good luck and hope it all works out for you both. Anyone who sets up thier own business gets the thumbs up from me everytime

[Budgie]

Ask at your bank and see if they have a "Small Business Advisor", they should be able to talk her through most things to do with setting up.  ;)

[90Mike]

lord shagg-pyle -  thanks for the quick response yes she has already been crb checked and will carry the certificate around at all times to shown all the new customers thanks again

sleeplessparadise - thanks for the advice thats a big help that will give her something else to work on we did not think about insurance

[richo]

Give the tax office a ring and they will send you a starter pack.
Then if i was you keep your own books and at the end of your tax year get a good acountant to do you tax side for you .The vat is not really important yet until you hit the max vat bracket which i think is about 55k turn over.
You can do a vat course as my mums done one as my dad had to go vat reg'd when he got past the most you can turn over before you have to be vat reg'd.
Keep it simple do your books on paper the first year to see how you get on .
If you are going to employ people it starts getting confusing.
Remember that the tax man will want his money so they will always try and help you understand your tax.
Get a good acountant thats the real key.
I have a old lady do mine and shes great.

[90Mike]

muddyjames - thanks for the info mate we just thought we would add a little twist by supplying our own equipment, as regards to using the car we were looking at somthing similar to peugeot partner and citroen berlingo because you can still get these with the 5 seats which we need cause of the kids then we were thinking of getting the rear windows done with the logos the chance of her using mine is nil she refuses to drive it says its too big and wobbly plus i dont think the customers would be happy with the mud over their drive  :lol:

budgie - cheers mate something else to do on monday she will be a busy bunny :)

[90Mike]

richo - cheers mate

Give the tax office a ring and they will send you a starter pack.

why didnt we think of that  :roll: sorry to be dumb but when you say about keeping our own books what is it we need to be logging down and claiming for obviously what we are charging, fuel and equipment anything else you can think of?

thanks again guys  :) the help is really appreciated

[Boggert]

To get a loan you will need to write a Business plan, now that sounds scary but there ate some good templates on the internet.

As for Tax, Its a doddle, just go self assessment, my wife runs her own child minding business and is self assessed.

[sleeplessparadise]

I only know about the insurance etc. as I used to work for Age Concern helping the elderly in their homes. When I decided to leave a lot of my clients asked me if I would still go as my own business so I did look into some of the things. The other thing would be business mileage on any vehicle you do use to run the business because you are not going to one place of employment so you need that but as I assume she will not be going far this generally doesn't add too much to the premium  ;)

[Sharpshooter]

Im not much help.

But my sister does this.

She cleans very large and posh houses. She doesnt have too many, but she works 5 days a week. She does have her own hoover. But she uses the cleaning products the people supply. This way, if anything goes wrong, its down to the owner. (Ie chemical reactions etc).

She also uses her everyday car. No need to advertise if your good at it. Maybe at first put out the feelers, but my sister never advertised. All done by word of mouth.

She also house sits for the people when they go on Holiday. Its a small break for he, and the peoples houses she looks after have the peeace of mind their house is ok whilst they are away.

She got two tickets to the Monaco prand Prix last year, as one of the customers works and lives there in the week. She got full use of their appartment, and prime view of the race. This was great, as my Brother in Law is an F1 nut.

She also keeps her own accounts, and does them once a year. About christmas time i think.

[richo]

In and out goings like fuel cleaning products any thing that you use for the business really.
If you find a acountant and ask them how they like there books doing ,then do as they like it done that way your acountants bill will be lower then if you just chuck all the paper work at them and tell them to get on with it .
Then again if you don't think that you will turn over much the first year give self assesment a go .
I did in my first year .I just went in to the tax office and they helped me fill it in.
One thing with acountants though is they will make sure that your claming for everything you can it's there job to ,you know what i mean?
Richard.... good luck

[Andy 300tdi]

contact your local learning and skills council (LSC) they will be able to provide contact details of your local 'business link' who will have advisers and access to government funding for new businesses

[90Mike]

boggert - cheers

To get a loan you will need to write a Business plan

hmmmm just as i thought :doh: might be worth her having a look for one of these templates you said about but am i right in thinking its a lot more hassell for such a small loan do you know of/are any advantages of having a business loan  :?

sleeplessparadise - flippin hell thats another thing i forgot car insurance it wont be the standard social,  pleasure policy

[Boggert]

Here try this Plan http://www.innovation-dynamics.co.uk/downloadabledocs/businessplan.doc.

it seems like a good template, take all the complex stuff out keep it simple and to the poing. I wrote one ages ago for a car valeting business. tried to find it but i cannot, i'll look for a hard copy, it was great... got offered the money by the bank as well, but never bothered to go with it.

I think its a cracking idea, i know around here there is a shortage of cleaners, we couldn't find one for ages.

[Edge]

Just wanted to wish you and the missus all the best in your new business venture :clap:. Get your 1st 5 customers.... then before you know it... word of mouth will spread and you'll be very busy indeed.
Buy "The Lady" mag from whsmith etc.... most large houses, country estates, wealthy folk search the classifieds when they need staff/cleaners.

[Boggert]

Sent you a PM

[90Mike]

sharpshooter wow you have got one lucky lucky sister but fair play she must work for it and good on her

She does have her own hoover. But she uses the cleaning products the people supply. This way, if anything goes wrong, its down to the owner. (Ie chemical reactions etc).

Now thats a good idea especially with how some people are these days ( where theres blame theres a claim  :-o )

No need to advertise if your good at it

comletely agree and under stand but this has got to work and asap as it will be getting are full attention so for the first few months we have got to get our name out there

  She also house sits for the people when they go on Holiday. Its a small break for he, and the peoples houses she looks after have the peeace of mind their house is ok whilst they are away.

HMMMMMMM the plot thickens  :drool: lording it up in some posh house  :-# :lol: ( only joking )

[lee celtic]

I used Microsoft money to do my accounts for 10 years I just inputted everything incoming and out going  then handed the printouts to the accountant to work out the tax (before self assesment) He would claim for electric gas phone cat(pest control) dog ( security) .

If you use your car you will still need comercial insurance and you may have to pay more tax as it will be clast as a company car .

[90Mike]

Andy300tdi -

government funding for new businesses

i like the sound of that, thats has definitely got to be worth a look, would be nice for the government to give us some money for a change  :twisted: cheers for the advice.

Edge - what kind of lady mags  ;)  ;) thank you very much for your support a true gent.

Boggert - i have replied to your pm mate  :)  ;)

[90Mike]

lee celtic - oohh that sounds easy somebody else has recommended quick books for small businesses never took it too seriously but i must admit that it does sound tempting just to log your in and outs and then give it to the accountant to work his magic  ;)  ;)

[v8kenny]

Don't bother going vat registered unless you think your turnover is going to go above the threshold - complicates things and you are just an unpaid tax collector
Local tax office will give you all the info you need re what you can and cant claim for
Consider doing your self assessment online as you can fill in your tax return electronically and they will calculate your tax bill/refund for you - saves paying an accountant for what will be fairly simple book keeping
Any return must be filed by the 30th of Jan each year or you will be subject to an automatic £100 fine - so if you started the business on 1st Feb then you would only have to submit your accounts by 30/01/09 - your tax bill would be due in two installments,  50% on 01/07/09 and 50% on 01/01/10
Car insurance - sd&p with business use wont cost you much extra
The Internet is your friend here - everything you need to know you will find on google - www.direct.gov.uk will give you all your tax answers
Go for it - I have been self employed for over 20 years and don't regret it at all

[90Mike]

v8kenny -

The Internet is your friend here

tell me about it looks as though mud club is the only one i need with great people like yourself and the other members that have gave up there time to post on our problem we really appreciate eveyones help and comments, you have give the wife something else to do over the weekend thanks again

mike & nikki

[graham]

Some good advice given in this thread  :)
My wife is disabled we have a local girl who does the heavy cleaning twice a week, she also takes away our ironing she is a real treasure she has done it for about 5 years now. We get on well she does a first class job and we pay her more than she wanted, if we go on holiday we still pay her, we want to keep her.
I'm posting this from a customers point of view, if you do a good job word will get around its not just the people with big houses there are lots of busy people out there, also disabled people with young families. My wife has MS its shocking how many young people who are being diagnosed with it.

We supply all the cleaning materials and she uses our vacuum all she has to do is turn up, i don't know if she has public liability I'm sure our house insurance will cover anything.
I run my own business the tax etc can be a bit daunting go see an accountant they will put you right and show you how to keep books, after you get the feel for it you may find you can do it on your own. Ask them to give you a price for the work and when you will have to pay your first tax bill.
If you want to expand the business and employ staff then you must get insurance and get the right people.
 Don't let the customers take advantage of you, charge them for all your time, if you have to go shopping charge mileage on top of your rate to cover wear and tear / fuel to your car. Those will you pick up my prescription on your way etc etc eat into your profits. Have a sheet with your charges to give out to customers that way there can bo no argument later.

Good luck with it I'm sure if you go about it in a business way you will be successful

[redhand]

If you have a room in your house set aside as an office you can claim back a paercentage of the housing costs on your tax bill

[Range Rover Blues]

If you have a room in your house set aside as an office you can claim back a paercentage of the housing costs on your tax bill

But when you sell your house the taxman will want a percentage of the house's value to be considered for capital gains on the basis that it was used by your business and not as part of your home.

[90Mike]

graham -  thanks for your time to post a reply its nice to hear from a customer point of view

Don't let the customers take advantage of you, charge them for all your time

i think this would be quite hard for the wife to get her head around as she needs to start thinking with her head rather than her heart

we still need to try and work out a hourly rate, do we go into this on the same par as other cleaning business and charge the same amount or do we offer a cheaper hourly rate to start off with?

redhand -

If you have a room in your house set aside as an office you can claim back a paercentage of the housing costs on your tax bill

that sounds like a good idea we will have to look into that one we have got a shed outside i could plonk her in  :)

range rover blues -  

But when you sell your house the taxman will want a percentage

dont know if this will work in our favour but its only a rented property that we are in would this matter  :?

[Boggert]

Hi Mike,

Just been talking to SWMBO, she think around here in Lincs, the cleaners charge around £7-8 per hour which seems about right..

This company charge £9.50 ph http://www.callthebutler.co.uk/housecleaning.htm

These are about £9ph http://www.amycleaners.co.uk/prices1.php

[90Mike]

Boggert thanks for the links they seems very well layed out and you can see why they are charging the extra we were thinking of just keeping it simple to start off with but having the hourly rate at about £7 - 7.50/hour but if the customer needed any extras it would at a additional charge.