Sole trader with different names

[AngelinaKedge]

As a sole trader with one business, can you have 2 trading names?

eg. I ran a life coaching business offering life coaching with the business name Inspirational Life Coaching. If I wrote a book and self-published it could this part of my business be called Inspirational Publishing? Would I have to have 2 businesses? If not do I have to have 2 sets of accounts or one?

 

[KaidenLevine]

Yes, as a sole trader, you can have multiple trading names for different parts of your business. In your example, you could use the trading name "Inspirational Publishing" for your book publishing activities, while continuing to use the trading name "Inspirational Life Coaching" for your life coaching business.
You would not need to set up two separate businesses for this, as you would still be operating as a sole trader. However, you should ensure that both trading names are registered with the appropriate authorities. In some countries, you may be required to register any trading names you use with the government or regulatory bodies.
As for accounting, it depends on how you want to manage your finances. You could choose to keep separate accounts for each trading name, or you could keep all your financial records together and simply separate your income and expenses by trading name. You should consult with a qualified accountant or tax professional to determine the best approach for your specific circumstances.

 

[Scalloway]

Would I have to have 2 businesses? If not do I have to have 2 sets of accounts or one?

If you are a sole trader you can have different trading names as long as you disclose your own name in all company literature. You should keep accounts that split the income and expenditure for each business. HMRC will expect you to report each business separately in your self assessment.

 

[AngelinaKedge]

Thanks everyone. It’s much clearer now.