Multiple incomes on tax return

hubb

For the last almost 2 years I have been working from home recording music and sounds, taking photographs and selling items on Ebay. I also do seasonal work for garden nurserys as self employed (pay my own tax and NI). When I spoke to someone on a course from the inland revenue before I started out, he told me I had to list all businesses separately on my return. So far I have done this but on the Money Program on BBC Radio 4, they had experts who gave advice to roll all incomes under one business return which I must say, would be easier for me.

Surely if you are declaring everything you have earned it's the most important thing. Will HMRC be suspicious if I change this to all incomes in this Jan's online return ?

BoGoF

If the work is totally different, as yours is, then you should be completing a seperate s/e page for each business. For instance you cannot deduct expenses from business 1 in the accounts from business 2.

hubb

Why did Radio 4's money program experts say you can combine all different types of income under one business ?

As for expenses, some of them are shared as my office heating, internet cost, stationery etc are shared between my Ebay and creative admin.

antrobus

hubb wrote: »

Why did Radio 4's money program experts say you can combine all different types of income under one business ?

Because one business can have multiple income streams.

hubb wrote: »

...When I spoke to someone on a course from the inland revenue before I started out, he told me I had to list all businesses separately on my return...

Yes, that's the way HMRC like things done.

hubb wrote: »

Surely if you are declaring everything you have earned it's the most important thing.

Absolutely correct. Notwithstanding what HMRC or experts say, there is (as far as I'm aware) no legal definition of a 'business' that enables anyone to say, this is one business and that's another; it's all a matter of convenience.

hubb wrote: »

Will HMRC be suspicious if I change this to all incomes in this Jan's online return ?

Possibly. Bureaucracy dislikes change.

PlutoinCapricorn

Are vast sums of money involved? Are these really 'businesses' or just bits of income here and there? If you earn under £50,000, HMRC just requires three totals. I would probably treat everything as one lot of income, expenses and profit. I would keep separate records for my own purposes.

'Portfolio worker' describes someone who does a bit of this and a bit of that, which might be relevant here,

There is a Note box that can be used to explain the difference from the previous return, to avoid bringing the troops down on you

hubb

I do photography, sound recording and music which I lump together as "Creative " work

I sell as a business seller on Ebay which I listed separate on my last return.

I also do horticultural work seasonally at a nursery but invoice them paying my own tax. This way I can claim expenses on my travel/ cost of work clothing.

PlutoinCapricorn

This sounds like 'serious' work. Perhaps in your case separate figures are best.

Perhaps your thread will attract the attention of one of the former HMRC inspectors and they will give their ruling.

hubb

Not sure what you mean by "serious" work. Money earned is money earned but I kind of know where you are coming from. I think I will carry on as I have started listing the incomes as separate on my return and explain in the last bit what I am doing (they give you a box to add further notes)

The horticulture will be a new addition but I don't have a trading name. It's just me and I invoice only with my name and address.

At least it's all bringing money in and paying the bills and I enjoy it, especially working from home. Beats a 9-5 with some of the people you don't really want to spend time with :-)

PlutoinCapricorn

I was trying to say that you are doing a lot more than someone who is making pocket money by a bit of dog walking, a bit of mystery shopping, a few surveys, setting up a website that brings in a few £ each month ... the Radio 4 programme probably had people like this in mind when they said the income could be reported as one figure.

I am a home-based sole trader myself, and completely agree with you about the 9-5 office life.

hubb

The guy who rang radio 4 with the very question was a musician like myself in the same position, earning royalties from works as well as other manual work.

Mistral001

hubb wrote: »

but on the Money Program on BBC Radio 4, they had experts who gave advice to roll all incomes under one business return which I must say, would be easier for me
.

This is not all that strange. The businesses might appear to you to be separate, but as far as HMRC are concerned they are just profits from your business outside of your earnings from employment on which you pay PAYE.