PAYE and self employed tax query

[richb330]

Hi all. I need some advice and wondered if anyone on here could help.

I have had a ltd business for about 7 years and treated it as a part time job supplementing my PAYE income. It is registered with companies house and with the Flat Rate VAT scheme. I gave up my full time job around a year ago to focus on building it up but things haven't worked out as i'd hoped. I've had to go back into full time employment and landed a perfect job. Good money, great benefits and a really good work/life balance. The only issue is the working contract explicitly states that employees over a specific pay grade should focus all their time on the business, and not have any other business interests. This applies to me.

I think it's unfair that they have such a policy but it is what it is so I've de-registered from the FRS scheme and in the process of closing the business down.

However, I have two good customers of my private business that I wish to retain. They have been really good to me over the last year and between them I probably make around £5k per annum.

The query is, how do I go about maintaining these customers financially. I will have to invoice them for work so I’ll amend the invoice template and remove the VAT line. Can I maintain my business bank account and have income paid into that?

More importantly, how do I declare the income? I'd prefer not to register as a sole trader as i don't want to alter my tax code and potentially jeopardise the full time job. Can I simply invoice out, have money paid into the business bank account and declare the income through the annual self-assessment process?

Any thoughts greatly received.

 

[StevensOnln1]

If the bank account is in the name of your limited company then it will be frozen when the company is dissolved (if you haven't already closed the account first). you will need to open a new account as a sole trader. Unless you keep your limited company going, you will need to register as self employed with HMRC. This won't change your tax code and they won't tell your new employer.

 

[MyAccountantOnline]

Hi all. I need some advice and wondered if anyone on here could help.

I have had a ltd business for about 7 years and treated it as a part time job supplementing my PAYE income. It is registered with companies house and with the Flat Rate VAT scheme. I gave up my full time job around a year ago to focus on building it up but things haven't worked out as i'd hoped. I've had to go back into full time employment and landed a perfect job. Good money, great benefits and a really good work/life balance. The only issue is the working contract explicitly states that employees over a specific pay grade should focus all their time on the business, and not have any other business interests. This applies to me.

I think it's unfair that they have such a policy but it is what it is so I've de-registered from the FRS scheme and in the process of closing the business down.

However, I have two good customers of my private business that I wish to retain. They have been really good to me over the last year and between them I probably make around £5k per annum.

The query is, how do I go about maintaining these customers financially. I will have to invoice them for work so I’ll amend the invoice template and remove the VAT line. Can I maintain my business bank account and have income paid into that?

More importantly, how do I declare the income? I'd prefer not to register as a sole trader as i don't want to alter my tax code and potentially jeopardise the full time job. Can I simply invoice out, have money paid into the business bank account and declare the income through the annual self-assessment process?

Any thoughts greatly received.

Do you have a spouse who could operate the company rather than yourself?