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Old 29-07-2008, 08:02
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James Smith James Smith is offline
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Choco,

Couple of points for you:

1. Re CGT/business rates and the home. If you have EXCLUSIVE use of one room or area of your home then you could well be liable to business rates. Simply solution – make sure its not! Recent rules changes make CGT less likely than before. Rules in this area are complex but shouldn’t hurt most people but it is very much an "it depends" on your circumstances issue. Exclusivity is again a key factor.

2. Self assessment - filling the form is a relatively simple. Paying the right amount of tax is a lot harder (ie knowing what numbers to put on!). Whether it is worth paying someone like myself to help you will depend on how big the numbers are. Often there isn’t a huge amount I can do for a micro business other than peace of mind.

Re exiting, one of the reasons HMRC ask you to register only after 3 months or trading is that they don't want to clog up the system with failed businesses that are still in the “ideas and first steps” phase.. If things don't go too well after you have registered then all you do on the self assessment form is put a ceased date and that’s about it! With a limited company it’s a lot more complex which is why I normally suggest testing the water as sole trader where practical.

hope that helps

Regards,
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James Smith
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01235 536773

Confused about bookkeeping, self assessment and VAT for your small business?
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