Two Sole Traders at the same address

matthewfc

Hi. I am a sole trader and my sales are starting to increase. My live in partner also want to start up a business as a Sole Trader. Will this cause problems? Will HMRC allow this? We will both be selling thing on Ebay so it may look like we are working together.

cfnc

Why do you both want seperate businesses?

The use of your home utilities, ie internet access and light and heat expense can only be use as an expense once , so you would have to share the cost agaist your tax.

If one of you make a profit higher than your personal allowance you will pay tax on the remainder. If the other makes a profit lower than their personal allowance they would lose the remainder. However if you were partners your profit would be shared and both your personal allowances would be utilised.

kirsty

matthewfc

My business turnover is currently safely within the VAT threshold. I am a bit concerned that if she starts up it may look like I am avoiding VAT

fengirl_2

As long as your OH has a separate bank account, separate eBay account and accurate records, and you dont share stock, I can't see the problem.