Quote: Sherbert Dip "I am intrigued as to the business plan that allows you to pay yourself £100 pw for 26 weeks?
It just doesn't add up.
Will you be providing invoices for each shirt sold?
What if the shirts need to be returned under the 'Sale of Goods act'? How will you refund them?
Is it cash only?
Do I need to pay VAT on the shirt?
Do you have a business account into which you will pay each £10?
Will you pay tax?
Are you now registered as 'self employed' and no longer a statistic on the 'Unemployed List' ?
I could go on, but my lunch time is limited here in the 'real world' of employment'"
Indeed. Damo will need to sell at least 260 shirts just to pay his wage for half a year, and that's without paying the costs associated with producing and selling those shirts. I dont think VAT is an issue as I think there is a threshold on how much a "company" has to make or be forecasted to make before VAT kicks in.
National Insurance may be an issue though, and Damo probably should register with HMRC.
