Changing businesses as a sole trader?

[Fourjays]

Hi,
I've already tried calling Business Link about this, but got referred to an HMRC number that doesn't seem to be at all related. The HMRC and the new Gov website seem to be completely useless in helping me, and I can't find any suitable contact numbers or emails on the HMRC site. So I thought I'd ask here and see if anyone can advise me from their own experience.

I have been self-employed for about 8 years now but am now wanting to get into a different field with a new trading name.

What I want to know what do I need to do to inform the HMRC of this? Do I inform them that I am no longer self-employed then re-register as self-employed? Or do I rename the "business" somewhere? And how do I handle it when it comes to doing my tax return online? Failing that, can anyone point me at the right HMRC number to call for help?

I'm so confused by the lack of clear information or help available from the official channels. Thanks in advance for any and all advice.

 

[estwig]

You could have a 'trading as' name for your new business, for example......

Joe Brown trading as JB associates

In this scenario your new business would be called JB associates, you tell your bank to accept cheques and payments made out to JB associates. Use your existing accounting system and accountant.

The only person to inform in this scenario, is your bank and your accountant.

 

[Deleted member 74972]

I don't think you need to let the authorities know.

As a sole trader, you can call yourself just about whatever you like (subject to copyright etc). Provided you fill in your self assessment form correctly and continue to pay your Class 2 NICs, I doubt that HMRC gives a tinker's cuss.

Let your bank know and your accountant if you have one.

 

[Anna Chandley]

When you complete your tax return you will fill in one set of self employment pages for the current business and show the date you ceased trading for that business as applicable. You would then complete a second set of the self employment pages for the new business showing the date that you started trading in the new business.

Anna

 

[Fourjays]

Thanks for the replies.

I don't think you need to let the authorities know.

As a sole trader, you can call yourself just about whatever you like (subject to copyright etc). Provided you fill in your self assessment form correctly and continue to pay your Class 2 NICs, I doubt that HMRC gives a tinker's cuss.

Let your bank know and your accountant if you have one.

When you complete your tax return you will fill in one set of self employment pages for the current business and show the date you ceased trading for that business as applicable. You would then complete a second set of the self employment pages for the new business showing the date that you started trading in the new business.

Anna

Just to be clear... So it is as simple as beginning trading in my new business, then on the relevant tax return I fill in two sets of self-employment pages (one ceasing, one starting)? No other notifications or changes are needed? Can that be done on the online tax return service?

 

[Anna Chandley]

As long as you are already registered as self employed, paying class 2 NI and not VAT registered then all you need to do is complete your tax return showing the two businesses.

If you are VAT registered then you would need to inform HMRC about the changes using VAT484 form.

Anna

 

[Fourjays]

As long as you are already registered as self employed, paying class 2 NI and not VAT registered then all you need to do is complete your tax return showing the two businesses.

If you are VAT registered then you would need to inform HMRC about the changes using VAT484 form.

Anna

I have an exemption for class 2 NI that runs until some point next year if I remember correctly. Does that change anything?

 

[Gecko001]

I do not think you have to do anything.

In short as a sole trader registering a business with HMRC is a total urban myth. You are the one that pays income tax and not the business.

 

[Scalloway]

I have an exemption for class 2 NI that runs until some point next year if I remember correctly. Does that change anything?

Only if your going to make enough money to go over the exemption limit.

 

[Fourjays]

Ok, I think that answers all my questions. Thanks for the advice everyone!