Sole trader - questions about running a 'sideline' business

[charcinders]

Hi, I'm a freelance electronics engineer operating as a sole trader. I am VAT registered. I am planning to start hosting drumming groups in my local community. I don't expect to make much money from it, but there will be a small income, as well as outlay (room rental, insurance, instrument maintenance, etc.).
I'd like to know:
* Can I merge the accounting for the drumming with my accounts for my main business?
* Am I obliged to charge drum group participants VAT?

Any other important points I may not have thought of?

Thanks in advance, Chris.

 

[Newchodge]

Hi, I'm a freelance electronics engineer operating as a sole trader. I am VAT registered. I am planning to start hosting drumming groups in my local community. I don't expect to make much money from it, but there will be a small income, as well as outlay (room rental, insurance, instrument maintenance, etc.).
I'd like to know:
* Can I merge the accounting for the drumming with my accounts for my main business?
* Am I obliged to charge drum group participants VAT?

Any other important points I may not have thought of?

Thanks in advance, Chris.

As a sole trader you and all your businesses are one and the same thing. If you are VAT registered, all your businesses must charge VAT.

You can keep the accounts separately, which may be more useful to you. If ypou merge the accounts now and later decide to make the engineer side of things a Ltd company, it may be more complex.

 

[NicoJ]

As a sole trader you and all your businesses are one and the same thing. If you are VAT registered, all your businesses must charge VAT.

You can keep the accounts separately, which may be more useful to you. If ypou merge the accounts now and later decide to make the engineer side of things a Ltd company, it may be more complex.

Generally this would be correct. The complication here is that teaching (if this comes under that umbrella) is exempt from VAT. This could have implications with the engineering side as can effect the VAT calculation.

It is definitely worth checking the facts over with your accountant to be sure.

 

[MyAccountantOnline]

Can I merge the accounting for the drumming with my accounts for my main business?

Yes you can but bear in mind you'll need to complete a separate Self Assessment supplementary page when completing your tax return for each business so you may find keeping both separate is easier.

Am I obliged to charge drum group participants VAT?

You may not have to. Have a read of the guidance here https://www.gov.uk/guidance/vat-on-education-and-vocational-training-notice-70130

 

[charcinders]

Thanks all.
It's not teaching, so I can't get away with not charging VAT!