Steve
change cold to hot for email
>Hi as anyone here started there own diy business, maybe if you have
>you could let me know how it went, problems as seriously considering
>after my lay off in August.
That's what I've done.
You have to be totally committed to this change in your life. If it's
to fill in a gap until your next "real" job comes along then it might
not be worth the effort in terms of the amount of income it will
raise. Obviously if someone offers you some simple work like painting
and decorating then the costs are minimal and you can earn some money,
but where tools and equipment play a part then you have to make
decisions about depreciation and sharing the costs over multiple jobs.
Startup costs were considerably more than I budgetted for. Income in
the initial months has been slow to non-existent. If my parents hadn't
passed on and left me with a small inheritance (emphasis on small)
this wouldn't have been a goer. Basically you need a rainy day fund,
if you are starting from zilch then it might be a tad difficult.
What tools do you currently have? A few screwdrivers, a workbench, and
a B&Q drill? Think in terms of having to not only replace those tools,
but augment them with others too (an SDS drill will set you back about
£50 for starters for example - though you can get them a bit cheaper).
You must not forget essentials such as indemnity insurance, budget
maybe £250+. The outgoings will surprise you.
Networking is key to getting work. Advertising doesn't work well (I
don't think I've covered my costs of advertising - and I haven't
advertised much). The more people that know a man that can, the more
work that man will get. Referrals and repeat business are what you
need to aim for.
It's best to be aware that some if not many of the jobs that come your
way are ones which might be a tad more difficult than they first look.
The householder might have got opinions from elsewhere and your quote
looks really great. Then you spend mucho time wondering why the hell
you ever accepted the job from hell working for peanuts..... :)
How are you planning to shift tools and materials to and from site? I
was fortunate that my "family" runabout was a Freelander in good
shape. It's a pain in the butt because it is way too small even with
the rear seats folded. But if you've got a plain vanilla family car
you'll need to budget some sort of van or truck early on.
It's a cut-throat business. Many people have been displaced in their
employment and see doing a bit of DIY as a means to put food on the
table for their family. End result is lots of people fighting for work
in a restricted environment.
Also be aware that the Inland Revenue apparently take a special
interest in this group of freelancers - it's too easy to work cash in
hand and leave the taxman out, and the taxman knows that. I won't do
cash in hand and everything gets documented and passed thru the bank
account for when Hector pays a visit. That means quite a lot of
paperwork which I don't get paid to do.
The last thing I will mention is that you will most likely want to
start up as a sole trader. Be aware that as a sole trader you don't
have any real legal protection if you take something on and it goes
pear-shaped at someone else's expense. They can come after you and
take everything you own by way of compensation. A limited company puts
an umbrella over your head in this respect - but costs a lot more to
set up and operate. So with any job you decide to take on you must
have an eye on underwriting the full cost of repairs for the customer
if it doesn't work out - those repairs may be worth considerably more
than the job you originally took on.
Timewasters are a feature on the landscape. I had one guy recently who
phoned up wanting a new loft floor and loft ladder installed. I gave
him a budgetary quote. The next day he phoned up with a couple of
questions about the installation, which I gladly answered. The day
after that I got another phone call saying he'd had someone else in
and they had said the overlay over the top of the rafters would cause
a problem and the quote would have to be higher as a result. Not only
was I unaware of the underlay having been thrown over the rafters, but
I was by now getting ticked off by the guy playing me off against
someone else. I told him to employ the other guy - I've got better
things to do than provide a free advice helpline for the benefit of
others.
I am contemplating trying to build a small business network of
like-minded people, or even possibly employing others. Reason being
that I've just been approached to take on a major painting and
decorating job - we are talking very large house and the lot needs
doing. I've turned the job down because there aren't enough of me to
do it. If I had 2-3 other people to call upon it might have been
worthwhile.
Overall I would suggest this might look like an enviable way of
getting back to work. But it is hard graft most of the time. For me it
has worked out - I don't ever want to go back to sitting at a keyboard
5 days a week getting stressed out. My income potential is perhaps one
third what it was 2 years ago, but quality of life is significantly
improved. I've downgraded my aspirations and in due course will
downgrade my lifestyle (downshift the house to something smaller when
the children fly the nest). If you aren't able to take that step then
it's probably safest if you don't get into this industry.
PoP
Sending email to my published email address isn't
guaranteed to reach me.
Some people prefer to keep your name a secret so that you don't get too busy
to do their work.
>It's best to be aware that some if not many of the jobs that come your
>way are ones which might be a tad more difficult than they first look.
Or you get the "fiddly" jobs that fall between trades. All the big stuff has
been done and paid for and you're left with the "just" jobs. "Just box in
those pipes" is a favourite. Takes forever and nothing much to show for it.
Well, you've only tidied up after the plumber really. Shouldn't cost much,
should it?
Don't forget that women swoon over paint. All through the preparation stages
they look at you as though you're making work and it's all a plot to create
dust. Put a coat of paint on something and they think you're wonderful, and
able to make their dreams come true. If I had to pick a speciality, I'd go
for painting (ideally with some other bugger doing the preparation).
>A limited company puts
>an umbrella over your head in this respect - but costs a lot more to
>set up and operate.
Set up cost if you d-i-y can be just £20-£25.
Only if you are nothing but a shareholder. In the average small business,
you will also likely be a Director, who can still be held personally liable
for a lot of things. IMO, good liability insurance is probably a better way
to spend the money.
Colin Bignell
yeh, there are plenty of them out there, commonly known as "Cowboys" (c;
Les
This is very true. If you have a small business as a limited company
and arrange for your sister to be the director and the accountant to
be the company secretary it looks on paper that the liability for them
is only a small set of things such as making sure the company is
solvent and filing the annual return.
However, if you are running the business day to day in the role that a
director would normally take, then you are considered to be a shadow
director and for most purposes that is considered to be equivalent to
officially being the director.
For most one person operations of this type, it should be relatively
close to a "cash" business in the sense that materials are bought and
used on a job and then payment received shortly thereafter.
I suppose it might be useful to be a limited company in the case of
wanting to take on large jobs if there is a risk of bad debts from
customers.. Having said that, this ought to be tackled by a good
business practice of stage payments.
.andy
To email, substitute .nospam with .gl
If you want to build up your capital base surely paying 0% on 10K of
profits beats paying NI and Income Tax at your top rate
--
Tony Bryer SDA UK 'Software to build on' http://www.sda.co.uk
Free SEDBUK boiler database browser http://www.sda.co.uk/qsedbuk.htm
>If you want to build up your capital base surely paying 0% on 10K of
>profits beats paying NI and Income Tax at your top rate
I think you may be referring to Gordon Browns inducement to small
businesses whereby the first £10K of profit doesn't attract
corporation tax (or some such).
I believe he's about to slam that door shut on the fingers of those
who fell for his charms. Get lots of people to move wholesale into
self employment and set up their own Ltd company, then yank the carpet
away from under their feet.
Perhaps I will be proved wrong about this, but I've seen enough of
Browns meddling with the economy to know that I simply don't trust
him.
>In article <vi3510hungkjigvv3...@4ax.com>, No-one <No-
>o...@nowhere.notime> writes
>>On Fri, 23 Jan 2004 23:37:21 +0000, PoP <p...@anyoldtripe.co.uk> wrote:
>>
>>>A limited company puts
>>>an umbrella over your head in this respect - but costs a lot more to
>>>set up and operate.
>>
>>Set up cost if you d-i-y can be just £20-£25.
>>
>But you will be taken to the cleaners by the Inland Revenue if you don't
>use an accountant for your annual returns - it just isn't worth the
>hassle - they don't argue with a decent accountant.
I was referring only to set up costs of forming the limited company.
£20 - £25 can set it up. However, I have seen charges to do exactly
the same vary between £200 and £500. Quite a difference
Not entirely fair.
There are good and bad examples of work done by people
who are doing for a living and those or are doing for themselves.
The only difference I can tell is that the diy bodgers are more _creative_
than the professionals.
--
Ed Sirett - Property maintainer and registered gas fitter.
The FAQ for uk.diy is at www.diyfaq.org.uk
Gas fitting FAQ http://www.makewrite.demon.co.uk/GasFitting.html
Sealed CH FAQ http://www.makewrite.demon.co.uk/SealedCH.html
Hmm. Over the past few years we've had about the most stable economy in
living memory - despite a world recession. Perhaps you think that's down
to chance?
--
*How can I miss you if you won't go away?
Dave Plowman dave....@argonet.co.uk London SW 12
RIP Acorn
>In article <opl610td757ds7u6i...@4ax.com>,
> PoP <p...@anyoldtripe.co.uk> wrote:
>> Perhaps I will be proved wrong about this, but I've seen enough of
>> Browns meddling with the economy to know that I simply don't trust
>> him.
The OP should take note of the way Brown has shafted the IT
consultants.
>
>Hmm. Over the past few years we've had about the most stable economy in
>living memory - despite a world recession. Perhaps you think that's down
>to chance?
No it's cos Maggie Thatcher kicked the Unions into touch.
DG
Yes. That and the single best thing Govt could have done, which is
hand over control of interest rates to the BoE. Brown has done nothing
more but put up stealth taxes and create jobs in Whitehall to monitor
the real workers.
Shano
To be fair, though, many consultants were taking the piss. Paying themselves
50 pounds a week and taking their wages in dividends. This pisses
non-consultants off, who get paid less and then actually have to pay tax as
well. It's a shame this couldn't have been sorted in a less draconian way,
though.
A bit like the local tip now banning vans because traders were tipping for
free. I now have about a tonne of rubble in my front garden because I can't
go down the tip.
Christian.
Would you really want to though? That's a lot of trips unless you
have a large vehicle. One thing that I really hate is waiting in a
queue of cars waiting to get in at the weekends, so if I do go, it's
in the week
>
>Christian.
>> The OP should take note of the way Brown has shafted the IT
>> consultants.
>
>To be fair, though, many consultants were taking the piss.
Indeed they were. They took advantage of the rules. There are other
rules which permit tax avoidance, such as the capital gains tax annual
allowance, over Ł6/annum. Totally out of proportion to the allowances
on earned income. And the acceptance of such practises as
bed/breakfasting of shares. etc.These rules have been allowed for
years. It was because it was a gang of Oik programmers who started
making free with the sort of tax planning the establishment have been
doing for decades.
>Paying themselves
>50 pounds a week and taking their wages in dividends.
ISTM they would have to draw the minimum wage. My accountant tells me
I have to draw about 7K (Not an IT consultant BTW).
>This pisses
>non-consultants off, who get paid less and then actually have to pay tax as
>well.
That's just jealousy, and ignores the fact that they have
countervailing benefits.
> It's a shame this couldn't have been sorted in a less draconian way,
>though.
>
What I've been told is the IT consultants have to work as employers of
a LTD company (their own) or their big corporate clients won't look at
them. So they have to pay *both* halves of the NI contribution, and
income tax as well, register for VATand pay annual accountants bills.
OK we all have to pay income tax but an employee of a big corporate
client would expect security of employement, sick pay, holiday
entitlement etc and if made redundant can go an sign on. What they say
is if they have no work they can't go sign on for unemployment benefit
because the benefits agency won't pay benefits to someone who's been
made redundant by his own limited company and some of them have had
*nothing* for 18 months.
DG
It's more than jealousy. These people are (legally) playing the
system to reduce their tax bills in a way that other people might
like to but cannot. IT people may have the choice of going
freelance but people like school headteachers can't.
As to benefits, I trade as a limited company, but do not play the
system (more fool me, some might say). I have a company car, non
contributory pension, PHI, professional subscriptions paid by the
company and I pay myself a proper salary. If, and only if, there is
enough profit left after all these, do I pay myself a dividend. If
the rules are changed so that owner-managed companies cannot pay
dividends (or if they do they are treated as salary) then I will be
seriously miffed but my real resentment will not be at GB but those
who created a situation that the rumoured changes address.
There may be a council voucher scheme which is probably not well publicised
and is almost secret.
If you have a van, but use it as a local resident rather than as a trader,
you present one of your vouchers to gain entry.
The council will give you a limited supply to match the 'reasonable'
disposal needs of the average citizen.
Found this out the hard way after filling a rented Transit one weekend.
(Scheme administered from main council offices only open on weekdays. FFS.)
--
Toby.
'One day son, all this will be finished'
>What I've been told is the IT consultants have to work as employers of
>a LTD company (their own) or their big corporate clients won't look at
>them. So they have to pay *both* halves of the NI contribution, and
>income tax as well, register for VATand pay annual accountants bills.
>OK we all have to pay income tax but an employee of a big corporate
>client would expect security of employement, sick pay, holiday
>entitlement etc and if made redundant can go an sign on. What they say
>is if they have no work they can't go sign on for unemployment benefit
>because the benefits agency won't pay benefits to someone who's been
>made redundant by his own limited company and some of them have had
>*nothing* for 18 months.
What you've been told is largely correct - except for the unemployment
benefit.
You CAN sign on whilst operating via your own Ltd company - but only
when the company can no longer afford to pay you. I've been there and
done that.
Giving yourself a P45 whilst keeping money in the company so that you
can re-employ yourself when things get better is not an option because
they will (and do) crawl over the company accounts looking for reasons
not to give you JSA.
I agree with the earlier posters comment about many people taking the
p!ss with their personal payment arrangements. However they were not
breaking the law in doing so - I'm sure the likes of Richard Branson
gain a lot of their financial income in ways which are not strictly
salary.
IR35 was not a good solution however. I was trying to hold capital in
the company to finance growth and look after me between contracts (and
paying myself 25K a year as well - which was the going rate for the
job). Under IR35 95% of all monies coming into the company had to be
treated as personal salary, regardless of whether that money saw my
bank account or not.
It would have been far, far easier to set a limit below which all
income had to be treated as salary, and to declare that it applied to
everyone from high falluting directors right thru to pensioners. No
complicated get-out clauses. Browns tax take would have been
significant, without p'ing off many people in the process.
>In article <53na10t8nnnqu9gkc...@4ax.com>, Derek
>wrote:
>> That's just jealousy, and ignores the fact that they have
>> countervailing benefits.
>
>It's more than jealousy. These people are (legally) playing the
>system to reduce their tax bills in a way that other people might
>like to but cannot. IT people may have the choice of going
>freelance but people like school headteachers can't.
>
I did say they have countervailing benefits.
Now let's see a school year is 34 weeks and my daughter in the 6th
form gets taught lessons 17 ! hours per week...
And usually I'm still driving home at 9-45 pm on a Friday night.
>As to benefits, I trade as a limited company, but do not play the
>system (more fool me, some might say). I have a company car, non
>contributory pension, PHI, professional subscriptions paid by the
>company and I pay myself a proper salary. If, and only if, there is
>enough profit left after all these, do I pay myself a dividend. If
>the rules are changed so that owner-managed companies cannot pay
>dividends (or if they do they are treated as salary) then I will be
>seriously miffed but my real resentment will not be at GB but those
>who created a situation that the rumoured changes address.
Not heard any rumours, :-(
Until 1 year ago when the tax charge on my 5 year old Fiat Ulysse
(market vlaue £4,5k) went up to £7.4k (reduction in my allowances
*each & every year*) I had not paid too much attention to my tax
affairs just left it to the accountant. Now the car is off the books,
so the chancellor gets nowt, I claim the allowance instead. My salary
is down to £7k and we draw dividends quarterly.
If the rumours come to fruition I'll "light the blue touchpaper" and
retire immediately ! My employees can go on the dole and my customers
(about 100 hospitals) can deal with me on a self employed basis on my
terms, or not at all.
DG
>On Sun, 25 Jan 2004 23:48:25 +0000 (GMT), Dave Plowman
><dave....@argonet.co.uk> wrote:
>
>>In article <opl610td757ds7u6i...@4ax.com>,
>> PoP <p...@anyoldtripe.co.uk> wrote:
>>> Perhaps I will be proved wrong about this, but I've seen enough of
>>> Browns meddling with the economy to know that I simply don't trust
>>> him.
>
>The OP should take note of the way Brown has shafted the IT
>consultants.
It's fair enough to close a tax loophole but it was done in the most
bureaucratic way imaginable, designed to catch some people and leave
the loophole open for others.
The way that Brown cashed in on corporate greed in the 3G auctions (a
stealth tax on mobile users if ever there was one) was also a
contributing factor to the boom and bust in the IT consulting market.
cheers,
Pete.
As for having a 'stable economy' I don't regard rocketing house prices,
notably in the London area (where the poster of the 'stable economy'
lives) is an indication of a stable economy. Even at 15% interest the
repayments on a 1 bed flat in London in 1991 was less than it is today
at todays asset prices. Watch out for that EU directive 'forcing Noo
Labour to impose Schedule A or CGT against their will' on us. If you
think they can't - try and buy some Vapona strips (amongst other things)
and ask yourself, 'Now who took these off the shelves'.
>
>A bit like the local tip now banning vans because traders were tipping for
>free. I now have about a tonne of rubble in my front garden because I can't
>go down the tip.
>
>Christian.
>
>
--
Andrew
--
Andrew
--
Andrew
> No it's cos Maggie Thatcher kicked the Unions into touch.
You think the US is heavily unionised?
--
*Men are from Earth, women are from Earth. Deal with it.
So there are no flies on the IR?
--
*Learn from your parents' mistakes - use birth control
That tax change was definitely a case of winners and losers. I
ended up £60p.m better off so it was obviously a long overdue
change <g>
Certainly sounds a bit crap that you as a bona fide DIY-er can't take
rubble at the tip (or do they just insist you stick it all in a car
boot instead of a van?)
It's certainly very variable according to locality though; I took a
hired tranny stuffed with junk and rubble down to ours the other day;
they said "are you trade?", I said "no" (true); and they let me in...
David
I don't know. They told me I had to go to the council offices in town (every
single car park in town has a height restriction, even the open air one).
There I can buy tipping licences for 50 quid each. A van load or a trailer
load uses one voucher. Minimum purchase 10 (seriously!). You can only use
the tip at certain times of day (Wednesdays and Thursdays from 10:15 until
10:19).
The alternative is to use my wife's car, which is a rather clean internally
Nissan Micra. I think I'll just dump the rubble in the council car park,
instead.
Christian.
You just need to remember to say the opposite when you go to the
builder's merchants, and remember to have a bundle of tenners in the
pocket of the ancient filthy jeans with the hole in the crotch area
and worn below the beer storage facility such as to show the
"cleavage" at the rear. This is worth at least 15% discount as
long as you remember that everybody's name is "mate" and not to use
the gold card.
>David
>In article <u3r9105sk2chclgdn...@4ax.com>,
> derek <d...@miniac.demon.co.uk> wrote:
>> >Hmm. Over the past few years we've had about the most stable economy in
>> >living memory - despite a world recession. Perhaps you think that's down
>> >to chance?
>
>> No it's cos Maggie Thatcher kicked the Unions into touch.
>
>You think the US is heavily unionised?
To be honest I don't know.
At American trade shows we've had problems with the Unions. you are
only allowed to carry in to the show 2 bags maximum, any more must be
handled by an official contractor who must use union labour. Want your
kit to appear on the booth in time to set it up? Speak to the union
guy. We did have one instance of the union guy pointing out how
inconvenient it would be if our packaging stored out the back of the
show "Went on fire". Ever heard of the Teamsters?
I imagine it's quite heavily unionised. But I think the success of the
American economy has more to do with the size of the market coupled
with the high cost of shipping in competing products, access to very
cheap immigrant labour, protectionism, a low level of regulation, and
the parlous state of the competing economies after WW2.
DG
>> There may be a council voucher scheme which is probably not well
>> publicised and is almost secret.
>
>I don't know. They told me I had to go to the council offices in town (every
>single car park in town has a height restriction, even the open air one).
It's a city now, don't forget.
>There I can buy tipping licences for 50 quid each. A van load or a trailer
>load uses one voucher. Minimum purchase 10 (seriously!). You can only use
>the tip at certain times of day (Wednesdays and Thursdays from 10:15 until
>10:19).
>
>The alternative is to use my wife's car, which is a rather clean internally
>Nissan Micra. I think I'll just dump the rubble in the council car park,
>instead.
I'd dump it in their reception.
At £50 a pop it's cheaper to get a skip and you don't waste time
waiting
>
>Christian.
>In article <u3r9105sk2chclgdn...@4ax.com>,
> derek <d...@miniac.demon.co.uk> wrote:
>> >Hmm. Over the past few years we've had about the most stable economy in
>> >living memory - despite a world recession. Perhaps you think that's down
>> >to chance?
>
>> No it's cos Maggie Thatcher kicked the Unions into touch.
>
>You think the US is heavily unionised?
In certain sectors, unfortunately it still is.
The recent debacle regarding steel was a demonstration of the
untenability.
Why bother? A wheelie-bin-load a week gets rid of a lot of stuff over
time and you only have to haul it to the front gate (which is quite an
effort in itself when we've got a good load in ours :-)
FWIW skip-bags are quite a good vfm way of getting rid of intermediate
amounts of rubbish (too much for the car/trailer, not enough to be worth
hiring a skip). Though I agree it goes against the DIY ethos (having to
pay for it, that is ;-)