A few questions about becoming a sole trader

[XmaX]

Hi, I am planning to create a small webdesign company (become a sole trader, not sure I can call it a company ). Since I am from EU, I don't know much about it, and started to research the topic just yesterday. The questions I want to ask are:

1. I know I can't register a name on Companies House when I am a sole trader, but can I use a name of my choice, eg. XYZ Webdisign (assuming there is no such company), or do I have to use my name, eg. Mark's Webdesign Services? I don't really care if someone steals the name from me, because I don't expect the yearly income to exceed £3000.
2. Do I need to have a business bank account, or can I use my personal current account (I will be also employed full or part-time)? I'm asking this, because I might need an auditor's certificate of balance, and I am not sure how will that work when the income from employment is mixed with income from my business.
3. Am I correct that I won't have to pay anything for my business apart from taxes? Since I will have an income of £3000 at most, I will not have to pay NI (Small Earnings Exception), and not have to pay VAT either. Will the fact that I will be employed somewhere else affect any taxes?
4. Can my business get cancelled, eg. if I don't have any income? I don't mean the bankrupcy, I mean the situation that I don't have any customers - my costs will be neglible.

[Mark J Bateman]

Hi Mate

How you got yourself an accountant yet - if not send me your e mail address and I will help you and answer all these quesions

Mark

Markmrtax@tiscali.co.uk

[Ian J]

You can choose any trading name within reason as long as someone else in the same business isn't already using it but if your expected turnover is going to be no more than £3,000 per annum I don't suppose anyone will worry. All legal stationary should carry not only the trading name but also that of the person behind the name ( eg J Smith trading as Smiths Transport )..

You don't need to have a business bank account so just make sure that the cheques you receive are made out to J Smith and not Smiths Transport.

You won't have to register for Vat but will have to declare the income (and expenses) on your annual return to the Inland Revenue and you will be taxed on the profit if your other income exceeds the minimum.

In the circustances that you have outlined there isn't really anything to cancel if you don't do any business.