Hire Companies, Insurance/Tax/etc

[willtom]

Over the last few years (while at university) I spent a lot of my beer fund on equipment. Now I've left, I'd like to earn a bit of money hiring it out. I know theres a variety of tax and insurance stuff needs sorting, but I don't know exactly which bit I would need. So far I think I need to register with HMRC as a business, I also need to sort the following things.

 

For Kit

Insurance against lost, theft, damage, while in storage, transit and use.

PAT Testing

 

For me

PLI (is this only if I am out using the gear, or even if I dry hire?)

 

For the business

Good record keeping for tax office

VAT registration if expected income over curent threshold (£61000?)

Employers liability insurance (or is this only is I employ anyone else. Do I count as an employee of the business, or does my PLI cover me?)

 

Do I need all of the above? Have I missed anything?

 

Also, for marketing, do you think I should list all my gear (worried people put off by me not having enough for their exact specs) or be a bit more vague (worried people assume I don't have enough for their show)?

 

Thanks in advance for any help and advice offered, much appreciated.

Will

[dunk_1984]

On the VAT front, if you are planning on buying more kit, it may be worth voluntarily registered so you can claim your VAT back on purchases. However if your clients are likely to be more people, dj's etc then obviously being VAT reg'd could also become a disadvantage as they don't seem to like that extra 17.5% you charge them.

 

On the marketing front, it depends on your connections, if you can get a range of kit cheaply (trade prices) on hire, then being vague/ saying you can provide for any event usually covers all eventualities. Also depends again on what clients and events you are after, the whole shebang or just disco's etc.

 

With the employers insurance and tax. Unless you plan on taking on staff, I am registered self employed as a sole trader, as you should be able to. With the insurance, again I carry personal PLI which covers me, you could then only employ freelancers, on that basis where they are responsible for their own taxes etc and should provide their own PLI, whether you enforce that is up to you.

[lightsource]

On the VAT front, if you are planning on buying more kit, it may be worth voluntarily registered so you can claim your VAT back on purchases. However if your clients are likely to be more people, dj's etc then obviously being VAT reg'd could also become a disadvantage as they don't seem to like that extra 17.5% you charge them.

 

If you do register for VAT, you can claim the vat back on gear you have purchased previously (I think it's up to 3 years, but not sure).

 

Whilst I agree with Dunc_1894, with regards to charging customers vat, remember that there's also a lot of things you can claim the vat back on, depending how you operate.

 

On the marketing front, it depends on your connections, if you can get a range of kit cheaply (trade prices) on hire, then being vague/ saying you can provide for any event usually covers all eventualities. Also depends again on what clients and events you are after, the whole shebang or just disco's etc.

 

Make friends with some of the bigger hire companies around you, know what kit they have, then if you get any bigger jobs in you've got a good starting point

 

 

One point worth noting from the Employers liability side of things, and I may be wrong but I'm sure I read it somewhere......

 

A person does not need to be an employee to make you liable for their actions. If you said to random stranger "hey mate, could you give me a hand lift this into the back of the van" ....... you would be liable at that moment for any injury suffered.

[lrh]

If you wish to give me a call I can tell you all about the insurance needed for Public Liability, Employer's Liability and insurance for your kit. We have been arranging insurance for AV companies for 20 years so will understand your business.

Peter Tilsed, Luker Rowe Hibernian Insurance Brokers, 01494 733337