Hi
Will I be unable to get Public Liability Insurance until I officially register myself as a company? I'm planning to start my own (1 man) little business cleaning windows, and just wondered whether it's really worth registering it right from the start before I buy my kit and start canvassing etc etc. This would also mean I can put "Fully Insured" on my flyers, but on the downside all work would be scrutinized by the taxman. and I'm not really sure if I'm making a rod for my own back. What did YOU do chaps?
Cheers
Re: Registering with the Inland Revenue. There are now financial penalties if you fail to register within 3 months of starting your business. It is unlikely that the taxman will scrutinise your business unless your business income and expenditure ratio look very odd or your income does not appear to be compatible with your lifestyle. Even then, in the first year or two they are aware that people take time to build up a business. I've heard that they sometimes do random investigations, but usually, it would take some odd accounting numbers to start this process off.
I wouldn't be surprised if they look at my next lot of accounts because I had half the year off sick last year and needed to live partially on credit. I've kept a medical certificate and can get a doctor's letter if needed and I've also kept my escalating credit card bills to show them if they wish to look. I think that's important. Make sure you keep and file relevant paperwork for up to 7 years (and preferably beyond that).
When I first started, I took about 5 months to register (there were no penalties then). I got public liability insurance in the first few weeks - before registering. That was in 1991 though. Things have probably changed since then.
