Working From Home Doing Repairs Etc.......

[djhollowman]

Hi all,

Firstly I'll point out that I'm in the UK, and this only applies in the UK.

So, I'm thinking about offering my guitar repair skills to the general public. I want to work from home, part-time (on an as-and-when basis) without giving up my regular day job. I would like to know where I stand legally on this. If I charge people for work do I need to be VAT-registered? Do I need to be a sole-trader, or a company or anything?? I want to be totally upfront and above board, pay any relevant taxes, the whole lot! I know NOTHING about this though.........

Does anyone else here do this? How does it all work?

I'm gonna go and seek some free independant legal advice if possible too, but I thought I'd ask around here as well!

Really appreciate any feedback!

Thanks,

DJ

[Southpa]

I do repair work at home all the time. Mostly for friends, co-workers and friends of friends, so far everyone is happy. I just turned down a potential fretjob on my friend's Martin the other day only because he should be taking it to an authorized Martin "repairman" because the guitar is still under warranty. As far as legal issues go, ie. setting up a "business" and dealing with the taxman for income purposes etc. its up to you. I don't charge enough to bother and consider it "under the table" beer money. Everyone either pays cash or there is some sort of barter involved. Depends on how legit you want to go.

[Mattia]

I'd simply contact your local inland revenue office, or check the website for information on starting your own business and/or freelance work. I freelance translate in the Netherlands, which means I need a VAT number so I can send invoices, but I just declare the income as 'other sources' on my annual tax thingy.

[Daniel Sorbera]

I just turned down a potential fretjob on my friend's Martin the other day only because he should be taking it to an authorized Martin "repairman" because the guitar is still under warranty.

This is so true. One of my friends has a fender bass who's output jack was very corroded and cut out constantly so I replaced the jack as a favor. Except now a few months later the active circutry is toast and fender wont take it because a "none authorized" repair man replaced the output jack.

I read through the fender warranty documents very carefully and I'm appalled. They cover almost nothing, and have loop holes to get out of anything.

[Mattia]

To be fair, Martin and Taylor have a really good rep when it comes to warrantee repair.

[Southpa]

Yep, same goes for Larrivee. However, I DID repair a body split in another friend's Larrivee, much older model though and I don't know what sort of warranty specs they offer, ie. 1, 2yrs. or lifetime? One thing about the friend with the Martin, I asked about his receipt and documentation. Apparently, he paid cash for a brand new Martin from a reputable dealership but did not get a receipt, manual or warranty info. I asked "what gives?" if you can't prove you are the ORIGINAL owner then warranty is void, goes with ALL brands. But he says he knows the shop owner well and the guy should remember the sale, I shure hope so. Otherwise, I told him to bring it on over. Sorry about digressing from the thread topic dj...well sorta.

[crafty]

This is so true. One of my friends has a fender bass who's output jack was very corroded and cut out constantly so I replaced the jack as a favor. Except now a few months later the active circutry is toast and fender wont take it because a "none authorized" repair man replaced the output jack.

I read through the fender warranty documents very carefully and I'm appalled. They cover almost nothing, and have loop holes to get out of anything.

Dan: Fender still has to comply with Magnuson-Moss. Unless they can prove that your replacement output jack caused the malfunction with the active circuitry, they MUST comply with the terms of their written warranty. They are under no duty to extend their warranty to the new output jack or cover the cost of your services, but they cannot void the rest of the warranty on the guitar.

Question: who refused the warranty service? Fender or the local repair shop?

DJ: Free legal advice from someone who is not a lawyer (or solicitor, in the UK) is worth about as much as it costs. Get yourself familiarized with the procedures for collecting taxes and getting the right documentation and licensing to the government. Hire an accountant if you're bad with numbers and you're making a lot of money.

[Setch]

You're on your own as far as the tax return and accounting side of things (Crafty's advice is bang on, and what I was going to suggest) but I can tell you that you don't need to register for VAT until your company is turning over a substantial amoutn of cash - far more that you're ever likely to turnover doing guitar repair! Since you're not VAT registered, you willstill have to pay VAT on all the parts and materials you buy, but you *won't* have to charge it to the customer.

[newjack]

i say **** the man!!!

[djhollowman]

Thanks for your thoughts, fellas!

Sorry about digressing from the thread topic dj...well sorta.

No problem! It's all interesting!

DJ: Free legal advice from someone who is not a lawyer (or solicitor, in the UK) is worth about as much as it costs. Get yourself familiarized with the procedures for collecting taxes and getting the right documentation and licensing to the government. Hire an accountant if you're bad with numbers and you're making a lot of money.

You're on your own as far as the tax return and accounting side of things (Crafty's advice is bang on, and what I was going to suggest) but I can tell you that you don't need to register for VAT until your company is turning over a substantial amoutn of cash - far more that you're ever likely to turnover doing guitar repair! Since you're not VAT registered, you willstill have to pay VAT on all the parts and materials you buy, but you *won't* have to charge it to the customer.

Heh, it would appear I'd have to earn £64,000 before I need to be VAT-registered, which is almost three times my current salary!!

i say **** the man!!! :D

Eh?