Starting 3 Sole Trader Businesses; need advice please

[HDR]

Hello

I am looking at starting 3x sole trader businesses over the course of next year (2022) and would like some advice please.

Each business will start at different times are not relatable; they are:
1) Delivery/Courier Driver
2) Advertising Website/s
3) Campervan Hire

What I'd like advice on is setting up as Self Employed and accountancy.

I don't know whether to have 3 different company names and bank accounts, one for each business or just register as self employed under my real name and have all three businesses run though one bank account??
I will also be looking at getting Freeagent, Xero or Quickbooks or something similar to handle my invoices, billing and Self Assessment. Again; one account or 3??
Could I register under my own real name and then legally use something like: "Real Name trading as Real Name Couriers" and "Real Name trading as Real Name Campervan Hire". ??

I guess I'm asking for advice on this before I make a start registering self employed for my first business so I have a clear plan going forward.

Any advice is most welcome, Thank you.

 

[japancool]

My advice?

Concentrate on one thing at a time, and make that work before you go off on to the next thing.

 

[Scalloway]

I would set it up with one bank account with my bookkeeping system set up to identify the income and costs of each separate business.

Could I register under my own real name and then legally use something like: "Real Name trading as Real Name Couriers" and "Real Name trading as Real Name Campervan Hire". ??

Yes.

 

[Mark T Jones]

My advice?

Concentrate on one thing at a time, and make that work before you go off on to the next thing.

This

 

[HDR]

My advice?

Concentrate on one thing at a time, and make that work before you go off on to the next thing.

I understand what you are suggesting and I will not be starting each business at the same time.
I just wanted some advice on making the first step and making sure that I setup correctly for things to come in the future.

 

[HDR]

I would set it up with one bank account with my bookkeeping system set up to identify the income and costs of each separate business.



Yes.

Thank you for clarifying that for me. Although having each business separate sounds ideal I think it could be a bit of a nightmare dealing with 3x different banks and bookkeeping systems.
My only issue is that the bank account and bookkeeping system can only have "Real Name" placed throughout, such as invoices etc.

Also, when it comes to Self Assessment time; the form asks for Employment details and Self Employment details. If I have 3x different businesses, would that be wrong to submit the income etc as one business?

 

[fisicx]

One bank, one bookkeeping system. All you need to do is identify the source of the income. As a sole trader it’s one business with three different divisions.

Number 1 is probably the only one that will make any money. Advertising websites have all but died and people will be tightening their belts next year when inflation really hits so holidays will be cut for many.

 

[Mark T Jones]

I appreciate your question is about banking and accounting, but the nature and scale of each business will have a significant bearing

Opening thoughts

Courier driving us basically a self-employed job (and potentially great way of feeding the family when you build a business) - in theory it can run through your personal bank account and self-assessment

Camper van hire is capital intensive, involves fixed assets, borrowings, deposits, dilapidation, rebates etc So almost certainly need dedicated systems if rone on any scale

I've no idea about website advertising, but I'm sure it has its own set of quirks

You also need to think about gross revenues and VAT

 

[Scalloway]

My only issue is that the bank account and bookkeeping system can only have "Real Name" placed throughout, such as invoices etc.

You have to disclose your real name on all business stationery etc if you use a trading name.

Although it is more work you could set up an invoicing system for each business in Excel for example, and just use the accounting system for recording them.

Also, when it comes to Self Assessment time; the form asks for Employment details and Self Employment details. If I have 3x different businesses, would that be wrong to submit the income etc as one business?

You should have a separate set of self employment pages for each business. I don't think HMRC are bothered at the set up stage, just when they get the self assessment information in, as they will compare your figures with similar businesses for a reality check.

One additional point to bear in mind is that if you turn over enough to be VAT registered it is you who will register for VAT as a sole trader, not each individual business.

 

[phantompainters.london]

I don't know whether to have 3 different company names and bank accounts, one for each business or just register as self employed under my real name and have all three businesses run though one bank account??
I will also be looking at getting Freeagent, Xero or Quickbooks or something similar to handle my invoices, billing and Self Assessment. Again; one account or 3??
Could I register under my own real name and then legally use something like: "Real Name trading as Real Name Couriers" and "Real Name trading as Real Name Campervan Hire". ??

I guess I'm asking for advice on this before I make a start registering self employed for my first business so I have a clear plan going forward.

Any advice is most welcome, Thank you.

I had established two very different sole-trading businesses recently and while all my tax affairs are in my own name, I do actually have two separate named business accounts for the respective activity, with Starling Bank. Clients for one business pays invoices to the relevant business account. On all invoices I state my real name trading as trading style, each with their distinctive logos etc.

From a bookkeeping perspective, I have one Excel file with numerous worksheets containing ledgers that I had built myself. I have one ledger for each of the two businesses, as well as expenses combined etc. Should be a breeze to do my next tax return.

In over 25 years of being self employed, I have never used accounting software - even when I was running larger VAT registered limited companies. I managed with a self-built ledger. I would only move to accounting software if my business had a lot of transactions each month, especially via ecommerce.

 

[LuckyMac]

My advice?

Concentrate on one thing at a time, and make that work before you go off on to the next thing.

Agree, there is a lot of stress and work in one business nevermind 3.