Reseller hosting within the Uk

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Posted by monkeyhead, 01-26-2005, 02:56 PM
Hi, Is there any Uk resellers who can advise me about the legimate side of running a reseller hosting buisness at 15? Some things I would like to know are Whether I have to get in touch with the Inland Revenue Can it be done at 15 legally? Do I need to become a registered company? All simple questions from a beginner If you can advise me on things and possibly guide me in the right direction please could you get in touch, Of course this would be most appreicated! Best Regards, Matt Seymour Contact: Email: matthew.seymour@btopenworld.com Msn: matthew.seymour@btopenworld.com Yahoo Im: matthew.seymour@btopenworld.com AIM: mattseymour123
Posted by monaghan, 01-26-2005, 07:13 PM
You are liable for tax at any age, so you'd need to inform the tax man. I see no logical reason for not being able to do this at 15, you may have contractual issues though, so it's probably worth involving a parent (if you plan to run a business, then you should really talk it through with a responsible adult anyway) You don't need to become a company, but it often is advisable to set one up.
Posted by Rochen, 01-26-2005, 07:37 PM
As pointed out above you will have to be at least 18 years of age in order to sign any contractual agreements and as a result will find it difficult to open business bank accounts, enter into agreements with customers and suppliers etc. You can however enter into contractual agreements as a director on behalf of a private limited company. You must be at least 16 years of age to stand on the board of directors of a limited company though. You should probably consult a chattered accountant though or a local business gateway in your area. I am sure they could offer you some advice, but you should probably ask yourself if you really want to be caught up in the whole business world when you are only 15. Considering you are having to ask questions like: "whether I have to get in touch with the Inland Revenue" kind of answers that question, for me anyway. Perhaps you would be best taking some kind of business studies course before jumping in at the deep end? Good luck! - Chris Last edited by Rochen; 01-26-2005 at 07:44 PM.
Posted by Jim_UK, 01-26-2005, 09:59 PM
I'd recommend reading up on this over at www.inlandrevenue.gov.uk and www.businesslink.gov.uk Also, check this out: http://www.inlandrevenue.gov.uk/startingup/pages.pdf
Posted by mdrussell, 01-27-2005, 05:40 AM
Chris, You can actually be a director on a board at 15. So if you formed your own private limited company then you can enter contracts and sign on behalf of the company. You may be able to get a business bank account at 15 with a private ltd company but you would probably need an adult's (someone over 18) signature on the mandate too.
Posted by beyondego, 01-27-2005, 06:11 AM
At 15 you must be at school. How do you plan to provide support if you're in class?
Posted by IvialisJonathan, 01-27-2005, 06:16 AM
He could always outsource his support when in school. There are ways of doing it. He should come up with a plan first. Planning first will save you from a great deal of headache later on.
Posted by beyondego, 01-27-2005, 06:24 AM
Indeed, but the balance of probabilities suggests yet another 'host' run on tiny margins in between school, homework and family holidays. IMO lads of 15 shouldbe out meeting others of their age, pestering girls (or boys according to taste) and enjoying their youth.
Posted by monkeyhead, 01-27-2005, 12:46 PM
Ah, I asked about the tax part as I was unsure about it all. I did a bit of research some time ago and found out somthing about if I earn under £4,000 I dont have to pay tax, but i wasnt entirely sure. Infact I am taking a business studies course at the moment and which is another reason why I would like to form a company as I'd get a better and much more visual approach alongside the course and hopefully give me a better understanding of the world of business. I will be planning out and actually thinking about this,and when it comes to support, i was actually thinking about out source for my support, but for the time being im only aiming to get around 5-10 clients. Thanks to all for the help and the critisim Matt Seymour
Posted by will7, 01-27-2005, 12:57 PM
Yeah, you can be a board director at 15, any age, they just wouldn't recommend it. When you go to register, they'll probably tell you they don't advise it coz you "don't know the business", but they can't stop you. As I recently found out, you will pay tax. Also, another good site is www.companieshouse.gov.uk. I am going to be setting up a Limited Liability company soon anyway.
Posted by mdrussell, 01-27-2005, 01:02 PM
Please be aware that business isn't a game. You shouldn't start a business if your sole intention is to further your education. Join Young Enterprise instead.
Posted by monkeyhead, 01-27-2005, 02:08 PM
I am aware business is not a game, Im just stating one of the pros is that it may assit me with my course.It is Of course, not my prime intention to further my education. Regards, Matt Seymour
Posted by monkeyhead, 01-29-2005, 10:58 PM
Just one last question, If I started a small business with just a reseller account and didnt make profits over £4000 would I have to still register with the inland revenue or would my profits come under personal allowance and be tax-free? Regards, Matt Seymour Last edited by monkeyhead; 01-29-2005 at 11:07 PM.
Posted by monaghan, 01-30-2005, 04:18 AM
Technically, you need to declare any income. People like to know they're dealing with a business rather than someone on their own who could dissapear at any moment (just read the reams of horror stories here on WHT for examples !)
Posted by mjb-is, 01-30-2005, 09:33 AM
If you have any income at all then you need to tell the IR. If you are not Employed (via your own Ltd company or another employer) then you need to tell them you are Self-Employed and you will be subject to Self Assessment and have to do a tax return at the end of the year. The 2004-2005 Personal Allowance is £4745 If you make profits of less than this then you will simply end up with a Tax bill of £0 at the end of the year when you do your SA form. Earnings above any Tax free allowances are taxed at:- £0 to £1960 @ 10% £1961 to £30,500 @ 22% £30501+ @ 40% This is all based on UK rates, since you did ask for advice for UK.
Posted by will7, 01-30-2005, 09:47 AM
Yeah, you still have to file for tax, but you only pay on profits more than £4745 (as mjb-is said). Even though if you make less than this, you still have to file your tax I think (obviously you will end with £0 tax at the end) - but if you don't, then I think you can be fined for not doing your self-assessment.
Posted by monkeyhead, 01-30-2005, 10:08 AM
Ah, I see I now have a better understanding Thank you all, Matt Seymour
Posted by mjb-is, 01-30-2005, 10:15 AM
Don't forget that if you make a loss in your first year (setting up etc) you can carry this forward on your SA form to subsequent years to offset against future Tax payments. In any case, you have to declare your income, whether you end up paying any Tax or not.