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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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I am currently setting up an eCommerce website. But I don't

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I am currently setting up an eCommerce website. But I don't know if I have to register it as a company or until a certain revenue is reached I am ok. I am current on Tier 4 visa and work fulltime. Should I go ahead and start selling on my website or I need (or even can as I am not a British citizen) to register it first.
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. There is no obligation on you to register it as a limited company. If you start trading it you will simply be contracting with your customers in your own name (trading as the e commerce site). The purpose of a limited company is help limit your liability for the potential risks that arises from you carrying on your business.
Customer: replied 1 year ago.
But don't I have to pay taxes from my sales? I thought I had to register as a company to do that?
Expert:  Alex J. replied 1 year ago.
Yes you will have to pay tax on your sales - if you do not have a company you will pay income tax - if you do have a company you will pay corporation tax on the company profits. You will also have to charge and account for VAT once you reach the threshold (currently £82k per annum) https://www.gov.uk/vat-registration-thresholdsRegistering a company is very simple - you can do it online here https://www.gov.uk/register-a-company-online - it can take 24 hours - you will need a registered office - and you will need an accountant at some point as you will have to file accounts if you are trading.
Customer: replied 1 year ago.
I am paying income tax on my full time job salary, so do I have to fill out some extra form for my sales? Also can I register a company while I am working full time and/or while being on Tier 4 visa (or have to wait till I get Tier 2?)
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. If you do not form a company and trade in your personal name you will have to file a tax return and pay on the profits you make. This is in addition to your salary. Your immigration status will be of no relevance to your ability to form a company in England - you should however check your employment contract to see if that prohibits you from carrying on another business while in employment.
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Customer: replied 1 year ago.
Great, this really helps. Thanks a lot Alex.
Expert:  Alex J. replied 1 year ago.
No problem. I wish you the best of luck. Kind regards AJ

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