Register with HMRC?

[nigelm]

Hi Everyone

I've got a quick question im hoping someone can advise on...

I've been freelance consulting for 7 or 8 years, have a Ltd company, and been completing self assessments for the same number of years..

I want to start up an eCommerce enterprise (which is completely different and separate to my consulting work) on a sole trader basis.

My question is, since im already 'known' at HMRC as self employed and have been completing self assessments for years do I need to register separately with them as a sole trader?

Many thanks in advance
Nigel

 

[Anna Chandley]

Nigel

If you are already registered as a sole trader and paying class 2 NI then there is no need to separately register the new business. When you complete your tax returns in the future you will need to complete two self employment pages. (I have assumed that the freelance work is in addition to your LTD company).

You need to remember that for VAT purposes is is you as an individual that has the VAT registration so if you are already VAT registered you will need to charge VAT on the eCommerce business. If not VAT registered it will be the combined turnover of the existing freelance business and new ecommerce business that will count towards the registration threshold.

Anna

 

[kevin.doran]

I'm guessing you file SA's at the moment because you're a director of your LTD and not because you're already self-employed?

If so, the SA record is already open so nothing needs to happen there but you will need to register for class 2 NI. Depending on your expected profits though you could potentially apply for exception from paying.

 

[Anna Chandley]

Nigel

Can you confirm whether your freelance work is carried out via a ltd company or if you carry out the freelance work as a sole trader and also have a ltd company?


Anna

 

[nigelm]

Hi - thanks very much for taking the time to respond...

To clarify:

My consultancy operates under my Ltd Company.

My ecommerce venture was going to be on a sole trader basis.

My personal Self Assessment would include my salary from the Ltd company, as well as dividends paid from the same.

Thanks
Nigel

 

[Anna Chandley]

Hi - thanks very much for taking the time to respond...

To clarify:

My consultancy operates under my Ltd Company.

My ecommerce venture was going to be on a sole trader basis.

My personal Self Assessment would include my salary from the Ltd company, as well as dividends paid from the same.

Thanks
Nigel

In this case please ignore my first post. As Platform has said you will need to register for Class 2 NI.

Anna

 

[nigelm]

Im not too clear on the difference around class 2 NI but i can look that up.

With regards to an exemption application, would this be around the class 2 only - and not the NI I pay from earnings from my Ltd company?

Im very keen to keep these 2 revenue streams as separate as possible as they are very different industries.

Thanks
Nigel

 

[kevin.doran]

Class 2 is explained here http://www.hmrc.gov.uk/working/intro/class2.htm

You pay NI via your LTD???

 

[nigelm]

No, I pay NI on the salary paid to me from my Ltd.

Thanks very much for the link.

Cheers
Nigel

 

[kevin.doran]

No, I pay NI on the salary paid to me from my Ltd.

Thanks very much for the link.

Cheers
Nigel

Have you ever thought of paying yourself a salary below the thresholds and then just drawing the remainder as divi?

You won't find a great deal of one man LTD's who pay NI on their earnings!