Hi All
I may be looking to startup as a sole trader in the coming months, but when/if it occurs I'd like to be as prepared as possible. Is it possible to setup your sole-trader company name and bank account etc whilst still in full time employment? I'm looking to setup as much as possible that does not really incur too much cost and could be cancelled if it fails to be needed... any advise really appreciated!!!
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Remember a sole trader is NOT a company.

You do not have to have a separate bank account.

Once you start trading you must notify HMRC within 3 months.

Yes you can still be in full time employment (subject to your employment contract).

And that's it! So no costs!
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Personally i would try to get the business up and running before you jump. It always seems to take a bank a while to get things going.
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Elaine has summed it up perfectly... the most important point is registering with HMRC within 3 months of declaring yourself a sole trader.

Such "declaration" occurs when you conclude your first "contract for services" between yourself and a client organisation.
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Hi Dave Bar
The Inland Revenue also run workshops that are FREE (yes free) for people who are planning on becoming self employed... these give you LOTS of info. about setting up and what you will need to do etc........ I have been on a couple and they are very informative.
If you go onto the inland revenue website and search workshops you can select them from there and look for your area.
Def. worth a day out I think......
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As Elaine says, you don't need a separate bank account, but it is recommended to keep personal and business transactions separate. It will simplify bookkeeping, avoid confusion in your own mind, and may one day minimise HMRC prying.

I would say the most useful thing to do at present is prepare a business plan, as detailed as possible, and keep asking yourself how reasonable are its assumptions and projections. This will help you decide whether to go ahead.

Chris
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Business plan is a good idea setting out both your plans plus the financial budget of sales and purchases, fixed and variable costs, profitability and the all important cash flow.
When preparing the business plan don't just guess a sales figure start from identifying the product, estimate the volume and the selling price.

Business plans have two essential features. First it sets out what you wish to achieve and how you are going to achieve it. Secondly when you start up the new business you can compare your actual financial performance against the business plan to enable the business to be controlled and move onwards and upwards.
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I agree very much with Chris. Do get a separate bank account for your business. It will make your life and that of your accountant much easier.
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thank you all so much for the response. lots to ponder. Think i would be better with a seperate account, especially as there are lots of fee free ones around.

can i register my business name without actually trading - in preparation? I have a name in mind rather than my own.

as for the business contacts query about not taking any from my present employer. I only have about 30 clients whom I know personally so don't need any client lists etc - it's all in my head - where does this stand legally :D - i wont be selling - it's a service based project.
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if you are going to operate as a sole trader then there is no need to register your business name ..... the only advice i would give is to make sure nobody in your locality uses that name or a similar name :)

i'll let some legal eagle answer the 'taking clients' issue, however even though you are providing, you are still selling that service to them - unless of course all your work is for free ;)
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