Self employed

[meibaker]

I have registered for sole trader and think to start another business in new year. can I register for sole trader with hmrc as both business are complete different areas, can't be used as combine business. I know you can do that with limited company but not sure if sole trader could. THanks in advance
Thanks

 

[StevensOnln1]

As you are already registered as self employed, you just complete a separate set of self employment pages for each business on your tax return. You don't need to register again.

Sent from my GT-N5120 using UK Business Forums

 

[meibaker]

As you are already registered as self employed, you just complete a separate set of self employment pages for each business on your tax return. You don't need to register again.

Sent from my GT-N5120 using UK Business Forums

The existing business is vat registered, but new one I don't want to register for vat, is it still ok ? Thanks in advance

 

[David Griffiths]

The existing business is vat registered, but new one I don't want to register for vat, is it still ok ? Thanks in advance

No it isn't OK. It is you that is registered, not the business, so anything that you do as a sole trader would come under that registration

You'd have to run the second business through a different legal entity, such as a partnership or a limited company.

HMRC do have rules that prevent artificial separation of businesses to avoid VAT registration but if it really is in a wholly separate area you should be OK. Be sure to be scrupulously accurate to make sure that each pays its own costs. Sharing costs can lead to problems.

 

[meibaker]

No it isn't OK. It is you that is registered, not the business, so anything that you do as a sole trader would come under that registration

You'd have to run the second business through a different legal entity, such as a partnership or a limited company.

HMRC do have rules that prevent artificial separation of businesses to avoid VAT registration but if it really is in a wholly separate area you should be OK. Be sure to be scrupulously accurate to make sure that each pays its own costs. Sharing costs can lead to problems.

Thanks for your advice.
Should I change my vat registered to limited company and start the new business under sole trader?

 

[David Griffiths]

Thanks for your advice.
Should I change my vat registered to limited company and start the new business under sole trader?

You probably could. Whether you should depends on a number of factors and you should seek advice from your accountant.