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YOUR FINANCES
Helping
Miss X
byMalcolm Chambers
And others, to set up a business in Jersey
CHARTERED ACCOUNTANT
A. J. Salsac and Co.
Starting your own business can be tricky. Knowing where to Department. As you have never been self employed before, up until
start and who to talk to, can be the most difficult part. That’s now, you have been paying half your SS contributions, and your
why it’s so important to find a local reputable firm who can employer has been paying the other half. So they will need to
advise you on what legal, legislative and economic factors change your status. You need to make an appointment to see them,
you need to take into account. so you can explain your new circumstances. Essentially what you
are asking them to do is change your status so you are paying
At A. J. Salsac & Co, we believe in putting you first. We’re here to Class 2 contributions. Contributions are paid quarterly, in arrears, so
help guide you through the whole process, from concept through to it’s important you contact them as soon as possible.
implementation. Below is an example of how we did just that, for a
recent client, Miss X, who came to see us. Once you have visited Social Security, we then need to sort your tax
situation. We would need to prepare a letter for you to sign
THE CASE STUDY OF MISS X appointing us as your tax agent which we would submit to the
Miss X Comptroller of Income Tax. This means he will correspond with us,
I’d like to set up my own Marketing business in Jersey but I don’t and not you direct and we will handle all your tax affairs from then
know where to start. What do I need to think about first? on. As a self employed individual with a trading name you will be
liable to pay your previous year’s tax bill, bi-annually in April and
Malcolm September respectively, each year. So it’s important you start to
The first thing you need to decide is whether you want to set yourself save money as soon as possible, in anticipation of these tax bills.
up as just a trading name or whether you want to start a limited The amount of tax you pay in one year will be determined by the
company. A trading name means you are essentially self employed, amount you earned the previous year.
and one of the benefits is that it helps you to create a distinct brand
for your business, thereby helping with your own marketing. As a self employed individual, there are certain business
Establishing the name is straightforward and costs very little, and the expenditures you will be able to claim against your tax, but we will
accounting requirements are less than for a limited company. go into these in more detail at a later meeting. As mentioned above,
once we have been appointed you no longer need to worry about
Forming a limited company means you are creating a separate legal correspondence with the Tax office as we will do all of this for you.
entity to yourself in the form of a Jersey registered company. This However, the one thing you absolutely must do for us is keep very
would entail limited liability and you would do this because you strict records of ALL incoming and outgoing monies in a finance
require the legal protection. Any company debt would not become record book, plus every monthly bank statement, and every single
your own personal responsibility. Therefore any personal assets you original receipt relating to your business expenditure. This will assist
own such as your house etc. would not be at risk if your business us when we come to submitting your accounts to the tax office at
venture should fail. the end of the year.
Miss X Operating a limited company is a lot more complicated and is more
Well I think as it’s my first venture, and I will only be starting out small, expensive but as your business grows we can discuss this other
a trading name should be enough for now. How do I sort that out? option further down the line. At the moment, judging from your
present intentions, operating under a trading name is more suited to
Malcolm your circumstances.
You really need to do two things at this point. You need to complete
a form to obtain a licence so you can trade legally. This can be Miss X
obtained from Regulation of Undertakings at the Population Office, That’s fantastic Malcolm! It was all so confusing before. I didn’t really
Jubilee Wharf, 24 Esplanade, St. Helier where the staff are very know where to start. Now I have a much clearer idea of what I have
helpful. Then you also need to register your trading name. This form to do. I’m completely confident I will be able to complete all the
can be obtained from the Companies Registry at the Jersey Financial forms I need to, and I will go away and give some serious thought
Services Commission, 14-18 Castle Street, St. Helier, or by as to next steps. Thank you so much for all your help! Now, what do
accessing their website at www.jerseyfsc.org. They are both very I owe you?
straightforward and easy to complete. But I can help you with both
of them if you need any assistance. Malcolm
Nothing. Our initial consultation with prospective customers
Miss X is entirely free. If you decide to appoint us as your agents,
Ok. They seem nice and simple. What’s next? we will agree a fee for our services in advance, payable
upon completion of each year’s work, or in monthly
Malcolm instalments. Whichever is most suitable for you. We look
Right. The next thing you need to do is contact the Social Security forward to hearing back from you soon, and good luck!
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