Startup Costs


S

StartupBloke

OK, so I'm thinking of setting up a Ltd. Company, and I'm trying to workout
the sales that I need to sustain my current salary.

Here's what I've got so far...

Salary = £30,000
Employers NI Contribution = 12.8% of Salary Bill = £3840

I've budgeted a couple of hundred quid to to buy an off the shelf company
approx £200

What sort of costs should I budget for administration of PAYE and getting
accounts done for companies house?

I'm assuming that turnover will be enough to cover these costs, but will be
less than the VAT threshold.

Given Mr Brown's recent changes, on small turnover companies, is better to
have a decent salary and avoid drawing small amounts of profit as a divi?

Thanks in advance,

Tim
 
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D

Doug Ramage

StartupBloke said:
OK, so I'm thinking of setting up a Ltd. Company, and I'm trying to workout
the sales that I need to sustain my current salary.

Here's what I've got so far...

Salary = £30,000
Employers NI Contribution = 12.8% of Salary Bill = £3840

I've budgeted a couple of hundred quid to to buy an off the shelf company
approx £200

What sort of costs should I budget for administration of PAYE and getting
accounts done for companies house?

I'm assuming that turnover will be enough to cover these costs, but will be
less than the VAT threshold.

Given Mr Brown's recent changes, on small turnover companies, is better to
have a decent salary and avoid drawing small amounts of profit as a divi?

Thanks in advance,

Tim
Do you consider the sole trader option and reject it?
 
T

Tony Bryer

StartupBloke said:
Here's what I've got so far...

Salary = £30,000
Employers NI Contribution = 12.8% of Salary Bill = £3840
Not quite: the first £4745 is not subject to NI, so it's 'only'
£3232.64.
 
D

David

top posted stuff moved so it makes sense
You can get your own name on the company as opposed to a shelf for less than
a hundred.



Paul Holt
www.acfs.co.uk
and for the other hundred make sure your domain name is registered etc..

I see Startupbloke Limited and startupbloke.co.uk are both available so
that's a good start for you ;p
 
A

Alan Terry

StartupBloke said:
I've budgeted a couple of hundred quid to to buy an off the shelf company
approx £200
Have you budgeted for other start-up costs and other ongoing costs?

Your ‘office’
Business Stationery / Logo
Marketing/Advertising
Website
Stock
Premises/Rent
Electricity/Gas
Equipment
Subscriptions/Memberships
Travel
Staff
Phone
ISP
Professional fees
Loan interest
etc/etc
 
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A

Alan Terry

David said:
I see Startupbloke Limited and startupbloke.co.uk are both available so
that's a good start for you ;p
The point about buying the domain name asap is important.

I missed my .co.uk name by a couple of months :eek:(

It's so cheap to get hold of a name - £10 or so.

It's also very easy to do online if you've done it before, but can be
very confusing if you haven't - this is why I offer to buy domain names
on behalf of start-ups free of charge.

Even if you don't plan on having a website, being able to use business
e-mail addresses gives a good impression and gives you control and
consistency for the future compared to using an xxxx@btinternet, or
whatever.

01903 248463.
 
S

StartupBloke

Hi Doug,

Thought about that.

I intend to run the Ltd. company in parallel to my job until a point where
it can fund my salary.

As a sole trader, as I understand it, any profit made would be taxed as my
income, which in additional to my current salary would be at 40%.

As a Ltd. company, these profits could remain in the company until a point I
want to start drawing on them as a salary.

Cheers,

Tim
 
J

Jonathan Bryce

StartupBloke said:
Given Mr Brown's recent changes, on small turnover companies, is better to
have a decent salary and avoid drawing small amounts of profit as a divi?
No. It is generally still cheaper to pay dividends than salaries.
 
D

Doug Ramage

True, although you may be better drawing the profits as dividends rather
than salary.

However, if it is likely that the new business were to make losses, then any
loss can be set against your employment income to generate a repayment from
the IR. You could then incorporate when the business starts to ear profits.
--
Doug Ramage

StartupBloke said:
Hi Doug,

Thought about that.

I intend to run the Ltd. company in parallel to my job until a point where
it can fund my salary.

As a sole trader, as I understand it, any profit made would be taxed as my
income, which in additional to my current salary would be at 40%.

As a Ltd. company, these profits could remain in the company until a point I
want to start drawing on them as a salary.

Cheers,

Tim



Doug Ramage said:
better
 
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A

Alan Terry

[QUOTE="Tim said:
... this is why I offer to buy domain names
on behalf of start-ups free of charge.
Whose name do you put down for registrant??[/QUOTE]

Either the name of the business owner or their company name - their
choice.

I'm http://www.yoursuccess.uk.com if you'd like more background.
 
P

Peter Saxton

[QUOTE="Tim said:
... this is why I offer to buy domain names
on behalf of start-ups free of charge.
Whose name do you put down for registrant??
Either the name of the business owner or their company name - their
choice.
[/QUOTE]
I think Tim's point was that a lot of businesses doing what you do
keep the ownership of the domain.
 
T

Tim

I think Tim's point was that a lot of businesses doing
what you do keep the ownership of the domain.
Mind-reading, Peter? You are, of course, absolutely correct! :)
 
A

Alan Terry

Peter Saxton said:
I think Tim's point was that a lot of businesses doing what you do
keep the ownership of the domain.
Yes, some do and it's an appalling practice.

I had thought that by saying in my post "on behalf of" my approach would
be clear, but I am very happy to have had the chance to state it more
precisely. Poster here are absolutely right to be suspicious.

I even pay for the domain name myself (by credit card over the web)
before charging on the cost to the 'client' (with no mark up!).

Sometimes this lead to the business asking me to put up a holding page
for them like these: http://www.yoursuccess.uk.com/holdingpages.html .
Sometimes, often much later, they will ask me to do a full website.
Sometimes we will get a chance to quote for our book-keeping services.
Sometimes it all leads to nothing.

I suppose it's my version of an accountant offering a free first half-
hour to a potential new client.

I have never had a problem getting repaid and would happily extend this
service to the clients of any accountants on this list - indeed to any
accountants on this list who don't have their own domain name, yet :eek:)


Regards,
 
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M

Martin

I even pay for the domain name myself (by credit card over the web)
before charging on the cost to the 'client' (with no mark up!).
Not really quibbling - what you're doing seems helpful and generous - but
your price for dot co dot uk ....?

You mentioned about a tenner previously. But £5.90 + VAT (2 years) is what
we pay.

Selling on at a tenner sounds eminently reasonable though.
 
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A

Alan Terry

Martin <ngng@ngngng.BARRIER. said:
Not really quibbling - what you're doing seems helpful and generous - but
your price for dot co dot uk ....?
I don't sell domain names, I simply buy from one of the established
providers on behalf of the person who needs the name. I mostly use 34sp
or Claranet, but sometimes a 'client' will have had another one
recommended to them by someone.
You mentioned about a tenner previously. But £5.90 + VAT (2 years) is what
we pay.
I can't get excited at the difference between your figure and £10 -
about 12p a month!
Selling on at a tenner sounds eminently reasonable though.
As I said, I don't sell on, I help people buy and don't have any deals
going on or commission, etc - hope that explains things my end.

Thank you for you comment: "what you're doing seems helpful and
generous". It really is supposed to be just that.


Regards,
 
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