Can I Run 3 Business Under One Account With Hmrc

[RATTER15]

I run 3 small (sole Trader)businesses but I dont want to run them as separate businesses, I want one set of accounts for the three businesses, will HMRC allow that?

Trying to keep things simple

[pixie374]

Hi x is your company name the same for each one?

[Buenchico]

You can operate as many businesses as you like as a sole trader. You simply need to fill in separate tax return supplementary pages for each business:
https://www.gov.uk/government/publications/more-than-one-business-hs220-self-assessment-helpsheet/hs220-more-than-one-trade-profession-or-vocation-2019

If you want to combine all your accounting into one though, you'll need to
(a) describe yourself as a 'general trader' or similar ; and
(b) ensure that a common name is used on all your paperwork. (e.g. you could issue some invoices as "Albert Ratter T/A Beardy Weirdies", some as "Albert Ratter T/A Doggy Doo-Dahs" and some as "Albert Ratter T/A Questions Questions"). As long as you've registered your (nominal) sole business as 'Albert Ratter', that should get around any problems.

[RATTER15]

Hi Pixie, they all have different trading names.

Chris, That could be an option all operating under a common name, how would that work with the bank though, could I have all three "trading as" names for one account?

[Old_Geezer]

It appears to me to be adding complexity.

[ummmm]

How are you doing your accounts? Have you got an accounts package or will you be using speadsheets?

[AuntPollyGrey]

It would be better for you to do three sets of accounts and do three business tax returns plus your personal self assessment where you would of course amalgamate the profits and losses from all three businesses to arrive at your net profit (if any). As they are all small businesses with I presume less than £80k turnover each, you would not need to provide HMRC with full accounts, just 2 figures for each business, your gross income and your taxable deductions. As long as you kept these figures separate for each business you could incorporate them into one set of accounts for your records or just have three separate spreadsheets. If you are legitimately running three businesses then each business should have its own UTR number -if you have only one UTR number, which will be linked to one of your business names, then all three businesses are classed as one for Tax purposes

[pixie374]

Do you keep cash books, ratter? I do, which saves a lot of money with the accountant too... I only have one official business though. But if you have one bank account for all of them, then your tax should be worked out from that xx

[AuntPollyGrey]

Ratter -unless you earn over £80k per business HMRC will not want to see your accounts nor require a balance sheet. The accounts would be for your records only and to provide the correct amount of gross profit or loss and taxable inputs (expenses)

[RATTER15]

Oh dear!! I think I need to sort out an accountant!! this frying my brain!!

[ummmm]

Ratter it's easier than it sounds.

[pixie374]

Ratter, I see an accountant once a year. Because I keep cash books, we pay 30% of the usual price, as it makes if easy for her.
I record the income and expenses in a book and throw it at her once a year, including receipts and invoices and she tells us what tax we need to pay and when.
We have to pay for three returns, myself, my sister and one for the "partnership", which comes to about £500, but would be much cheaper for you- and easier than getting in any trouble.

[AuntPollyGrey]

Ratter are your businesses or business registered? Are you registered with HMRC as a sole trader? If your business is registered you will have a Unique Tax Reference number for it ( UTR) you must be registerd as self employed to register a business and you will have received your own personal UTR for your personal Tax return. If this confuses you then you are best off getting an accountant but its not as difficult as it sounds -especially with a small business with no VAT returns. This portal may help but there is loads of advice on the HMRC website too.
https://www.bytestart.co.uk/self-employed-accounts-guide-beginner.html

[RATTER15]

I do have a business registered with HMRC already but as I have dyslexia and dyscalculia I had better talk to an accountant before I try and link them all together. I really appreciate everybody's advice but I think it will just get too complex for my simple brain.

[ummmm]

You could also go into your tax office and they will talk you through it.

[RATTER15]

Thanks ummmm, thats a thought, I may do that.

[ummmm]

Tax office also run short course free of charge (they used to anyway)

[Buenchico]

HMRC has almost completed their process of CLOSING all local enquiry centres, so you'll struggle to find an office you can walk into these days.

If the combined turnover from your businesses is less than £150k you can use 'cash basis' accounting. All you have to fill in for each business is the total income for that business and your total outgoings for it. Assuming that you've kept your accounts up to date, so that you've got the relevant figures to hand, it only takes a few seconds to complete the supplementary return page for each business. (i.e. even if you've got a dozen small businesses, it only adds a minute or two onto the time it takes to complete an online tax return. It's an absolute doddle!)

[AuntPollyGrey]

Perhaps not if you don't suffer from dyslexia and dyscalculia….

But I agree its not a difficult process and as I've said twice now, there are no need for accounts to be sent to HMRC.

[Peter Pedant]

as you are a sole trader - your businesses are treated as income
and as BC says
three line accounts for each ( revenue, expenses, gross profit)
you then pay income tax on it

I DO have an accountant and also keep decent books (I think)

it is quite straightforward so long as you take taz saeriously
you know sort of like pay taxes and not evade them