Sole Trader

[Choc Drop]

Hi all, I wonder if you can help me with a long standing question?

Can a sole trader own and run more than 1 business? If so, do you need to declare each one individually, and pay tax on each one, or do you just pay tax for the income of the whole lot at once?

Thanks!

[DMA]

You can do what you like as regards owning more than one.

The main problem is VAT.

If one business is over �55k turnover or so and another is below, normally you wud not have to register the one thats below for VAT - but coz youve got 2 businesses they wud be lumped 2gether for VAT purposes as you are one entity.

So you cud go into partnership in one of them so not have to register the one below the limit for VAt as its treated as separate business entity from the other that you run as a sole trader.


I think you pay the tax on the Business Entity. So if both are sole traders then they will be lumped together on the tax return and one payment in january & another in July will be applicable.

Im sure if you ring the tax office they will tell you how it works (free of charge).

[gammaray]

As a sole trader you will only get one form from the revenue on which to declare your income, regardless of how you have come by it. You would need to get advice in terms of VAT as it may well be the case that as a sole trader the turn over from all of your businesses are taken as a whole when it comes to the VAT threshold. You could form a limited company and operate the other businesses as subsidurys of the parent company. The tax position is (relatively)complex and you should seek professional advice.

[Choc Drop]

Thank you DMA and GammaRay, that has really helped me out. Much appreciated.

I will also seek some professional advice, but at least now I can go with some idea of what I need to find out about and where I need to start in conversation.

Thanks again!

[rebby]

Speak to your nearest Business Link, who can help you when sorting out all aspects of a business. They know their stuff.