Accounting for 2 separate businesses.

tails_5rifles

Hi all, sorry if this an stupid question but I intend to start two businesses in the near future, both as a sole trader and both in totally seperate fields. It is my intention to keep both set's of finances separate with each business having it's own account and books.

How do I stand with tax returns, for example if both business turnover £10k each would I need separate tax returns with three line accounts or would I need to submit full accounts as my total turnover is over £15k? :huh:

Or if one business turned over £20k and the other £5k would one would I need separate tax returns one with three line accounts and the other full accounts?

Thanks all!

jc2703

tails_5rifles wrote: »

Hi all, sorry if this an stupid question but I intend to start two businesses in the near future, both as a sole trader and both in totally seperate fields. It is my intention to keep both set's of finances separate with each business having it's own account and books.

How do I stand with tax returns, for example if both business turnover £10k each would I need separate tax returns with three line accounts or would I need to submit full accounts as my total turnover is over £15k? :huh:

Or if one business turned over £20k and the other £5k would one would I need separate tax returns one with three line accounts and the other full accounts?

Thanks all!

No matter how many businesses you have - you are only a taxable person once so you only fill in one tax return. This tax return must then take account of all types of income you have ie from self-employed, companies dividends, interest from investments, rent received and salary etc

So you would keep two separate accounting systems for the business you run but the totals for turnover/expenses and net profit/loss would be entered into your tax return

Hope that helps

J