Setting up the basics
There are some things that all businesses need – aspiring pro photographers take note!
By Roger Payne
When it comes to life-changing situations, starting your own business is right up there with marriage and having kids. No question. Make the big decision to go it alone and your days will change dramatically, especially if you’re currently a 9 to 5 clock-watcher. That’s why one of the most important considerations before you take the big leap isn’t how you’ll market yourself or whether you’ll be able to get enough money together each month, but whether you have the right attitude to self-employment. If, for example, you currently deal with setbacks by locking yourself in a dark room with a bottle of scotch for company, then you might want to think twice. If, on other hand, you’re looking for a new challenge and are prepared to work hard and learn from any setbacks you might suffer, then you’ve come to the right place.
Setting up
The vast majority of photographers will set up as sole traders, meaning that your business comprises you and no one else. Some may set up partnerships and others may consider becoming a limited company. For the purposes of this feature, however, we’ve assumed that you’re going for the sole trader option. Doing this means you’ll need to pay tax via Self Assessment, make Class 2 and Class 4 National Insurance contributions and possibly register for VAT, but we’ll cover these in more detail later. To set all these balls rolling, however, you need to contact HM Revenue & Customs (formerly the Inland Revenue) within three months of your first day of trading. If you fail to do this within the timescale, you’re liable to pay a fine.
Bank on it
Your next stop should be the bank to set up a business account. Business banking is more profitable to banks than personal accounts, so shop around and see which banks offer the best deals to business start-ups. At the very least you should expect to receive a charge-free year or 18 months as an incentive. Thereafter, banks charge more, the more paper you use (in the form of cheques). Paying in cheques and writing cheques both incur charges, so wherever possible it’s best to set up BACS payments with suppliers and customers.
Next, get an accountant. They make things so much easier. Avoid big accounting firms and go to private individuals – preferably on recommendation. They’ll be able to offer you a more personal service and won’t charge the earth. Get a good accountant and they’ll probably pay for themselves in terms of the money they can save you. In my first year in business, for example, I made a healthy turnover and didn’t pay a penny in tax, and it’s all thanks to my accountant!
Your final consideration at this stage should be insurance. At the very least, you’ll need to make sure your camera gear is adequately covered (check the ads in the back of Pro for insurance companies), but also make sure that if you’re going to use your car for business purposes your cover is upgraded accordingly. Also, depending on the type of photography you do, you may need public liability insurance, which covers you should you damage someone’s property, or a client injures themselves while on your premises.
