How to set up your Virtual Assistant business properly
You’ve decided becoming a Virtual Assistant is the right move for you… exciting! So, what next?
Knowing what you actually need to have in place before you start working with clients is something that trips up a lot of new Virtual Assistants and delays them getting started in their business (sound familiar?). The good news is that it doesn't have to be overwhelming.
You also don't need to have everything set up from day one. Some of the more fun things - like a beautiful logo, a polished website and perfectly curated social media pages - can come later. (And I can help you with these, too!)
Getting your business infrastructure set up might feel like one of the less fun elements of being an entrepreneur, but it’s still vital. Taking the time to get the legal, financial and practical essentials in place will help you start your business with confidence and protect both you and your clients.
Here's a simple guide to the key things you should be considering before you start working with clients.
Registering your Virtual Assistant business
Most Virtual Assistants start out as sole traders, so that's what we'll focus on here. If you're still deciding whether a sole trader or limited company is the right fit for you, have a read of my guide to the differences here.
One thing that often confuses new business owners is when you actually need to register.
You can earn up to £1,000 in income from self-employment during a tax year before you need to register for Self Assessment. This is known as the trading allowance. Once you earn more than £1,000 from your business, you'll need to register with HMRC as self-employed and submit a Self Assessment tax return.
The deadline to register is 5 October following the end of the tax year in which you went over the £1,000 trading allowance, so you don't need to panic and do it the moment you land your first client. If you get your first client in August 2027, and immediately earn over £1000, you still don’t have to register until 5 October the following year, 2028!
Do remember to make a note of when you started trading and keep records of how much you earn and spend. You’ll need this information when you register and to complete your first self-assessment tax return.
When the time comes, registering as a sole trader is a straightforward process that you can complete online through GOV.UK.
Registering with the ICO as a Virtual Assistant
Most Virtual Assistants will need to register with the ICO (and pay the small, annual Data Protection fee) because they process personal information as part of running their own business, as well as on behalf of their clients.
The ICO has a tool to check whether or not you are exempt from registering. In practice, registration is appropriate for the vast majority of VA businesses and is something I recommend having in place before you start working with clients.
Registering with the ICO, having a privacy policy and including appropriate clauses in your contracts are all important, but they're only part of the picture. Data protection is also about how you work day to day - from using strong passwords and secure file storage to thinking carefully about where and how you access client information. Good habits are just as important as good paperwork.
Managing client data and GDPR compliance
As a Virtual Assistant, you’ll often process personal information on behalf of your clients, from contact details and customer records to emails, calendars and business documents. You will also almost certainly handle personal data as part of running your own business. This means understanding your responsibilities under UK data protection law is an important part of setting up your business.
Your GDPR responsibilities may include having clear processes for storing, accessing and deleting data, using secure systems, and understanding how you handle information on behalf of clients.
Recent updates to UK data protection law also mean organisations need to have a clear process for handling data protection complaints, so it’s worth ensuring your privacy information and internal processes reflect this.
How you will manage data under GDPR, including (if you have a website) a privacy policy and terms of use. The ICO is a fantastic source of advice on this. They offer free document templates and standard clauses you can include in your contract to ensure they are GDPR compliant, and they have a free Privacy Policy Generator tool to help you, as well.
This can feel a bit overwhelming, especially at the start - so if you want some advice and reassurance about what’s needed for your business, drop me a message, or come and join The VA Village, where we have some amazing masterclasses and guidance on this topic (and loads of others, obv!)
Legally compliant client contracts for Virtual Assistants
A legally compliant contract for use with your clients is an important part of setting up your VA business properly.
A contract protects both you and your client by setting out expectations from the beginning. It should clearly explain things like the services you provide, payment terms, responsibilities, confidentiality, and how you’ll work together.
You don’t need to purchase your contract before you’ve found your first client, but it’s worth knowing where you’ll get one from and making sure it’s ready before you start signing agreements.
I recommend KoffeeKlatch, who offer a range of editable agreements designed for Virtual Assistants specifically, including their VA AI-ready Terms of Business - Basic, which is usually ideal for those just getting started.
They also provide video support, and you can get 10% off using my code Cozpr10. Annabel from KoffeeKlatch is incredibly knowledgeable and has kindly delivered a GDPR masterclass and an AI legals masterclass for The VA Village, which are available in the library for all members.
One important thing to remember: don’t just buy a contract and send it over without reading it! You need to understand what you’re agreeing to, so you can confidently answer any questions a potential client has.
Business insurance for Virtual Assistants
You’ll need Professional Indemnity Insurance at a minimum. I recommend PolicyBee for this.
Again, this needs to be in place from when you sign and start work with your first client, but it’s worth deciding ahead of time what you’re going to insure for and with which provider.
You may also want to consider Cyber Security insurance, and some VAs may require Public Liability insurance (if working with clients in person at their home or office, running errands or attending events with or on behalf of clients).
Other essential business considerations for new Virtual Assistants
Alongside the legal essentials, there are a few practical systems that will make running your VA business much easier.
A business bank account - This isn’t a legal requirement for a sole trader, but keeping your business and personal finances separate will make managing your money, tracking expenses and completing your accounts so much simpler!
An invoicing process - Having a professional, repeatable way to create and send invoices helps you look established from the start and makes it much easier to stay on top of getting paid.
A basic bookkeeping system - Keeping clear records of your income and expenses from day one will save you a lot of stress later (especially with Making Tax Digital continuing to roll out!).
There’s no need to invest in expensive systems when you’re just getting started, but having a simple process in place will help you build good habits from the beginning.
If you’re wondering what all of this is likely to cost, then have a look at How much does it cost to get started as a Virtual Assistant? This looks at the cost of these essentials as well as other possible start up investments such as domains and software.
Key takeaways
Setting up your VA business properly doesn't need to be complicated.
Most of the essentials can be completed in a few hours.
Contracts, GDPR compliance and insurance help protect both you and your clients.
A business bank account and bookkeeping system make life much easier.
Putting the right foundations in place allows you to take on clients with confidence.
FAQs
Can I start a Virtual Assistant business before registering as self-employed?
Yes. You don't need to register with HMRC the moment you start trading. You can earn up to £1,000 in self-employment income during a tax year before you need to register for Self Assessment. Once you earn more than this, you'll need to register as self-employed and submit a Self Assessment tax return.
BUT make sure you keep records of when you started trading and how much you've earned from the beginning.
Do I need to register with the ICO, as a Virtual Assistant?
Most Virtual Assistants will need to register with the ICO because they process personal information both for their own business and on behalf of their clients. The ICO provides a self-assessment tool to check whether you're exempt, but in practice I recommend that the vast majority of VAs register before they begin working with clients.
What insurance do I need as a Virtual Assistant?
Professional Indemnity Insurance is usually the minimum level of cover I'd recommend. Depending on the services you offer, you may also want to consider Cyber Insurance or Public Liability Insurance, particularly if you'll be working with clients in person or handling sensitive information.
Do I need a website before I can start as a Virtual Assistant?
No. A website is a valuable investment, but it isn't essential before you start working with clients. Focus first on getting the legal and practical foundations of your business in place. You can always build your website as your business grows. I talk about this in more detail here.
Do I need a contract before working with clients?
Yes. Having a contract in place before you start work helps protect both you and your client by setting clear expectations from the outset. You don't need to buy one before you've found your first client, but you should know where you're getting it from so that you can be ready as soon as you do!
Next steps
If you're getting ready to launch your Virtual Assistant business, here's what I'd recommend doing next:
Decide whether you'll be setting up as a sole trader or limited company.
Download the free Ten-Step Plan to Becoming a VA, which gives you a handy checklist to tick off
Start researching your contract, insurance and ICO registration so you're ready before you begin working with clients.
Set up simple systems for invoicing and bookkeeping from the outset. Your future self will thank you!
Keep a record of when you start trading and the income you receive, even if you don't need to register with HMRC straight away.
Starting a business can feel overwhelming at times, but you don't have to figure it all out on your own.
If you'd like support as you make the leap into running your own VA business, The VA Village is here to help. The Village is an amazing community of Virtual Assistants at all stages of their business. Find solidarity with people in the same place as you, and get input from experienced VAs who are happy to share what's worked for them - and what hasn’t!
You'll also get access to a growing library of previous training sessions, including expert masterclasses, as well as the opportunity to join live training and coaching sessions. Because having somewhere to sense-check your ideas, ask questions and have people cheering you on makes all the difference - it really does take a Village!
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About the author:
Kayleigh Johnstone is the founder of COZ & Co, an award-winning Business Support & Visibility Agency, and the creator of The VA Village. As a qualified EMCC Coach and Mentor, Kayleigh is dedicated to helping incredible women launch and grow profitable, flexible Virtual Assistant businesses. A recognised leader in the UK small business community and a Small Biz 100 featured entrepreneur, she provides a clear blueprint for VAs who want to stop chasing the 9-to-5 and build a guilt-free business that values their individual brilliance and general neurospicy awesomeness.
This blog was first posted in April 2022 and was last updated in 2026.
