Book-keeping business

husmaz12 Registered Posts: 5 New contributor 🐸
HI everyone i am thinking of setting up a book keeping business but have a few questions and was hoping someone might be able to help.

Firstly, i am unsure whether to register as a sole trader or a ltd company in terms of tax/NI payable. Also as i will initially be working from home and my home adress will be my business adress will i need to pay additional council tax etc?
I am aware that as a ltd company i will need to register with companies house but as a sole trader must i register or can i just start trading?

Also in terms of withdrawing money from the business what are the ways in which this can be done for either option?

ANy advice appreciated.




  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    you can start staight away with sole trader! u need to register within 3 months of ur trading date! have you check the HMRC website, there are all the info you need to know on starting a business! good luck!
  • tiffany
    tiffany Registered Posts: 2 New contributor 🐸
    if you were a sole trader you would take money out just as drawings and would have to pay class 2 NI contributions yourself. If you were a ltd company you would have to give yourself wages as a director under PAYE.
  • husmaz12
    husmaz12 Registered Posts: 5 New contributor 🐸
    thanks for the info..

    another query i have is that i am not yet fully AAT qualified but i do have qualifications from the IAB but they have informed me that i need to register with HMRC under money laundering reg's how do i go about this? apart from HMRC and the data protection commisisioner is there anyone else i need to register with before i can start trading?

  • burg
    burg Registered, Moderator Posts: 1,441 mod
    It may also be a good idea to look at getting professional indemnity insurance.

    Here are the details here for MLR with HMRC

    I would recommend starting as a sole trader and see where this takes you. Don't forget you cannot mention the AAT. Once qualified you will also need to apply for a practising certificate.

    No additional council tax just ensure any room you use for business is also used privately.

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