What exactly is insured and bonded??

Question

i want to star my own bussiness just cleaning houses eventually if i have a high clinentell ill have to seek an employee or 2 but 4 now its just going to be me trying to start it and work on my own. now i've heard from many people i must me insured and bonded incase i break something or get hurt. do i have to be insured and bonded and what is the difference between the 2 and where can i get it if i have to get it?? do i have to report any income i recieve if its just myself??

Answer 1

Probably not much difference. Insurance is where you pay a periodic premium (say monthly) whereas a bond is somewhere you deposit a lump sum that remains your property but is available if there was a claim against you.

Any income is potentially taxable. You get a tax free allowance, but strictly speaking you declare everything (UK anyway) If you take cash you may be inclined to not declare it but this is illegal and when you spend that money it is money laundering.