Couple of Questions for a new sole trader

[a1dan]

Hi All,

Really pleased to have come across this site - looks liek you guys have some pretty good answeres to some of the questions I have. There's a few that I've not been able to find the answers to yet though!

Basically, I'm setting up a small online gift list service. Turnover is a funny one to judge, as my profits will come purely from a quite slim commision, so I'm hoping for around £25-50k a year going through my bank account, but most of this will go straight out again.

Areas I could do with advice on:

1) As a sole trader, what limitations are there on what I can call my company? Does it even officially exist as an entity? I would like to be able to use the name with a suffix, like "ltd", (eg "a1dan ltd" as opposed to just "a1dan" - in order to make communications look a little more professional) but I'm guessing that "ltd" isn't allowed unless you are actually a ltd company?

2) Job title - I've seen a thread talking about this, and am aware that it's fairly open. Wondering what people would advise as a professional sounding, (and legal!) title for myself, bearing in mind it's an online service, and I'll basically be doing everything!

3) While loking at busines banking, I came across some stuff about being a "Money Service Business". Anybody know anything about this, and whether I would count as one, as I am essentially transferring money between people?

4) Does the 25-50k mentioned above count as my turnover? In which case, may I be in a position of having to become VAT registered if this figure pushes up to the threshold, whihc I've read is around £60k?

Think that's all for now, but I'm sure there'll be plenty more I think of! Thanks in advance...

[Mike H]

A1dan,

You seem to already have a pretty good knowledge and most of your answers are very close if not spot on.

1) As a sole trader you can not have the word Ltd or Limited in your business title, as you say this is only allowed if you are an actual registered company.

2) You can call yourself anything (within reason). Consultant, Proprietor, Manager. Stay away from the company related titels i.e. Director, Md etc etc.

3) I'm not sure if you would be classed as a Money Service business since your not transferring money as such you are exchanging money for products and passing them on/back. It would really depend on what your contract between the two parties says.

4) The VAT limit is actually £61k (this will increase in a months time). It sounds as if your £25-£50k would all be classed as turnover.

If you have any further questions please let me know

Regards

Mike

[Eagle]

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