Gone Self employed..What do I need legal wise!?

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Rossifoal1

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Hello all!

Ive been lurking on the forums for a while now mainly because ive been so busy with horses and my new job/self employment (I broke free from the office...scary stuff) Which is where the question is leading to....

I have set up a small business schooling horses. The yard I will use is the livery yard where I keep my own horses, the YO (a friend I would say also) has kindly said I can use any spare boxes as I wish and obviously give her the equivalent to DIY livery. I am also wanting to compete seriously with my gelding (by Jazz) and use experience to give lessons.

I really dont feel like BHS stages would help me at all but I would like to know..are there any qualifications I need to teach legally? Or is it just a matter of having insurance? Maybe as a BHS member? Also what sort of insurance do I need to run the schooling business?

I'm sorry its a little boring! But Im a bit stuck, young and clueless when it comes to 'serious stuff' to be frank!

To refamiliarise (what a word!?) myself and my boys to everyone, as it has been a while, here are a couple of pics for you to mock :p

This is Connor our 22yr old cob. My first horse, my first love! He's in semi retirement after winning numerous showing titles and competing up te medium in dressage. He is now our proud mascot and keeps the young giants in order.

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Logan is my ex eventer who has been in rehab for the past 18 months after a stable injury that caused damage to muscles and ligaments in his shoulder. He is now back in work.

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And finally my dressage ponce Rossi. 7 year old gelding by Jazz. Once a nutter now my dream horse. Excuse the horror that is me :o

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Don't get pushed into an expensive business bank account, you can use an ordinary one, the banks don't like, just don't tell them, first thing my new accountant did was to get me to dump the biz one as you get charged for everything.
 
You are supposed to tell the Tax Office that you are now self-employed (here: http://www.hmrc.gov.uk/sa/register.htm). They will send you various bits of paperwork about National Insurance etc. You will have to pay Class 2 National Insurance and if you earn enough then Class 4 as well. You will also need to do a Self Assessment for tax each year. The BusinessLink website has lots of information on it. You don't need an accountant if you are reasonably good at keeping records and understanding bureaucracy, but if you find this impossible then seek out professional help. Definitely keep good financial records - it doesn't have to be computerised or anything - just a big diary for you to write in your earnings and expenditure plus a shoe box for receipts will get you started.

I found it very liberating to become self-employed, also a bit scary, but on the whole the best decision that I made.
 
Excellent thank you both. I am onto the HMR&C and so that will all be sorted very shortly. Thankfully my dad runs his own company and is good with stuff like that. phew!

Still would like to know what minumum qualifications you need to teach with, or is it just insurance?
 
you will need third party public liability liability, and 3c liability for the schooling side. you will need 3 p public liability for teaching as well. also a tip if you have horses in for schooling and have to pay for the boxes you would be better to get the yard to bill the owner directly for the stable hay bedding and food, and you bill for the schooling otherwise you are pushing your turnover up unnecessarily. Your insurance policies need to be commercial ones as you are doing this for financial gain. your bhs/be/bd/bs membership insurance wont cover you as money is changing hands, neither will the horses own policy. Good luck!!
 
Rossifoal1 said:
Excellent thank you both. I am onto the HMR&C and so that will all be sorted very shortly. Thankfully my dad runs his own company and is good with stuff like that. phew!

Still would like to know what minumum qualifications you need to teach with, or is it just insurance?
Click to expand...

Some of the best instructors I know don't have qualifications - just lots of experience and ability! The value of qualifications are twofold: 1) it reassures students who aren't experienced enough to judge an instructor on the lessons they give; and 2) it may keep your Public Liability Insurance down (and you MUST have that!) Obviously, you can't give lessons on your own horses without a riding school licence!

For taking horses for backing and schooling you need public liability - and you would be wise to also have what is called 'product liability'! That means if the owner is not happy with what you are doing - or if the horse is injured while in your care - and the owner decides to sue you, you are covered!

Unless you employ a groom (part-time or full time) you don't need Employer Liability though it might be worth considering 'loss of earnings' insurance to cover you if you break your leg and can't work (it IS quite expensive though!)

I have all my yard insurances with KBIS - found them more competitive than any of the alternatives - and very helpful too. I would suggest you have a chat with them.
 
Cliverton Insurance (King's Lynn I think), are brilliant and very helpful. They will go through everything you do and will not sell you unnecessary insurance. I'm not sure that you legally have to have any qualifications to teach, but until you build up good reputation, I would think that new customers would expect you to have them. Does the BHS have a list of instructors and their relevant qualifications on their website, as that would be the first place potential customers would look I guess?
BusinessLink, if it still exists, offer many free courses that will really help and motivate you. How to set up your own website, marketing etc, how to write a business plan!!!! Good luck, it's great to be able to follow your dreams.
 
ofcourseyoucan said:
you will need third party public liability liability, and 3c liability for the schooling side. you will need 3 p public liability for teaching as well. also a tip if you have horses in for schooling and have to pay for the boxes you would be better to get the yard to bill the owner directly for the stable hay bedding and food, and you bill for the schooling otherwise you are pushing your turnover up unnecessarily. Your insurance policies need to be commercial ones as you are doing this for financial gain. your bhs/be/bd/bs membership insurance wont cover you as money is changing hands, neither will the horses own policy. Good luck!!
Click to expand...

Could get into a sticky situation insurance wise if YO billed direct. If horse got injured in the stable whose care is it under yours or there's? What level are you competing at and what scooping have you done? Are you ready to set up on your own or would you benefit more from being a working pupil/schooling rider at a pro yard for a while? Re the stages it depends on the clientele you are hoping to attract, some insist, some are not fussy! What kind of clients do you want to teach? Anyone and everyone or more specifically competition clients? These are all things you need to factor into your business plan because it ultimately has to be financially viable and make you money! Best of luck with it....it's very exciting to be embarking on a career that you feel you will love
 
There's no legal requirement to have qualifications but as you've realised insurance is essential for you and your clients protection and it is likely to be cheaper with a recognised qualification. A relevent first aid qualification would also be useful and may be required by insurance companies. I'm assuming you would teach clients on heir own horses, if you were providing a horse would require a riding school license which is more involved. Good luck!

Sorry just realised most of this has been said above whilst I composed my reply!
 
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You don't need qualifications to teach. Check out ABRS if you want some but don't like BHS.

If you want your NI to count towards a state pension, you need to pay class 3 voluntary contributions, in addition to the legally required class 2 & 4. If you're taking in horses for schooling or doing clipping etc then you need Care, Custody and Control insurance. I don't know what insurance is needed for an instructor.

You may want a first aid course, but there's no legal requirement as far as I know. If you're teaching children you may want to go on a child protection course too, so you know where the legality stands with regards touching them. A teaching assistant told me that if a pupil at the school presents her with a splinter in the hand, she must ask what they want her to do about it. If they say remove it, she has to ask if its ok to touch their hand. Nothing wrong with that, but perhaps a shock to the system if you come from the days where someone would put a hand on your bottom and give you a shove into the saddle if you were struggling to mount the horse.
 
Keep all receipts, fuel, and motor expenses plus clothing used for horses only.
You are best to work with paper records,at first, Simplex D do one, but you can get a simple software that will workout stuff like capital expenditure etc, any bookeeper will be fine, but avoid accountants,, they just take your money but are not helpful.
Keep your business in a normal bank account and don't say anything to the bank, keep a paper trail, cash from clients, can be put in to your account, use a card for fuel etc. Ask clients to pay by internet banking, ask for immediate payment, cheques are a faff.
You will need to have "drawings" ie an amount you pay yourself every week, weird, but that is the way it works.
http://www.thewholesaleforums.co.uk/threads/a-guide-to-keeping-basic-accounts.102518/
When you are self employed the Inland Revenue expect you to have transparency, so your bank account has no secrets from them, it is now your business account as far as they are concerned.
I insure through Simply Business, though a specialist like SEIB should be used to set the standard.
PS you can't afford sickies or breakages, sorry.........
One off cash payments come in handy .. sometimes........ just don't overdo it.
You probably won't be VAT registered or make a taxable profit in your first year, or second, or ever!!!!
 
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Good on you! It's a big step into self employment but great if you go about with common sense.

Your first and most important step is to get a good 3rd party insurance. As someone else said use your personal bank account - but a suggestion from one who does accounts for small businesses open a second account - title it stable account or horse account - use only that one for any business related transactions - same with any income you receive - put it in this second account.

Basically keep personal and business seperate. Keep all receipts for anything that you buy for the business. Keep a diary of appointments - write an invoice for each customer and write on the copy when it was paid. When you receive invoices as soon as you pay them write the cheque number or the online bank transaction number on the invoice - makes checking so much easier.

Definately ditch the accountant, I would suggest that you get the simplest form of computerised accounting systems as it does everything for you. I find MYOB really easy to use and have several versions on my computer as many of my clients have their own software. My own personal one is an old MYOB12 - does a fantasatic job. If you aren't keen on the accounting side find a good book keeper - until you are earning masses that person will be able to keep everything in order for a fraction of the price. Just present them with everything in company and date order. Remember that some stuff can be claimed as expenses and some has to be classed as assets and be depreciated, so be careful when you buy something expensive!

While it may be boring spend either a few minutes each day entering the days transactions or an houor a week to do the whole weeks. Don't keep putting it off - it just gets worse!
 
What they've said.

I've found the Inland Revenue very helpful, even when I got investigated! I'd done nothing wrong and came away with a clean slate. Plus they'd sorted all the loose invoices in my egg box and put them in the correct chronological order!:D (Quote: "We won't be investigating YOU again!":D I felt quite sorry for them). They'll give you a booklet telling you how to do it properly, so you don't need an egg box!

DO keep every receipt. DO send out proper invoices. DO chase up late payments and, where possible, get cash up front. ALWAYS ask for discounts. Most businesses go bust because they spend money they haven't got -- or due to illness.

Personally, I use a simple computer program for my book keeping (obsolete Quicken Deluxe 2000). It automatically generates VAT reports, profit and loss, etc. and I'd be lost without it. It also has a very good search facility which is invaluable. You bought a saddle three years ago and can't remember who you bought it from? A couple of clicks and you've got the answer. But I'm sure there are better programs about today. DON'T get a complicated one as you won't need it and, if you're like me, won't be able to understand it either.

You'll need to apportion what motor fuel electricity, telephone, etc. you use for the business and what you use for personal use. Once you've done a rough assessment, you can set up the accounting software to do that for you.

I do my own Self Assessment after an accountant made a £100 error (in his favour, of course) in my £400 bill! I'm also registered for VAT like most farmers and generally get a nice cheque at the end of each quarter. But that's up to you.
 
Dry rot - you reminded me

Keep a vehicle log book when you are doing any of your work away from home.

Keep it on the dashboard and get into the habit of filling it in just before you leave for a job. Makes claiming for vehicle expenses much easier especially if you only have the one vehicle for tootling around in.
 
I use an old fashioned receipt book with a label [Vistaprint] with my contact details, customer gets it, and I have a paper carbon copy.
Use Vistaprint to get good biz cards, you don't need more than 200, so go for quality cards, glossy metallic, they can be left in tack shop on noticeboards etc.
You can get nice magnetic advertising signs for your car [includes horse designs].
don't wast money on advertising but smart clothing is essential.
 
wow thank you all, each response was so useful..i've printed the pages! I need to get my bum into gear I think, there's more to do than I originally thought. I won't be teaching on my own horses but clients on their own and I feel better now I'm clearer on which insurance I need. I've decided to do the UKCC level 2 course in Feb next year as advised by a friend who is essentially doing the same thing. Fingers crossed!

Thanks again everyone!

Amie
 
Mostly good advice, however most clothing isn't tax deductible.

Spreadsheets should work fine. Current free software that's very good and simple is VT cashbook.
 
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