sole trader

abimonster02

As a sole trader do you put income streams from different ventures together on tax returns or do you need to submit one per business area?

chrismac1

You'd normally complete one set of self-employment returns for each separate business for which accounts are being done.

suso

chrismac1 wrote: »

You'd normally complete one set of self-employment returns for each separate business for which accounts are being done.

perhaps the worse advice given in the history of this forum, a new low chrismac.

For the original poster.

As an individual you complete one tax return per year for yourself.

On the return, you declare all forms of income, if you have more than one form of self employment you are required to declare each separate business income on a supplementary page. (SA103)

so if you have 3 different forms of self employment. you complete

SA100 - the tax return,
SA103 x 3 One for each self employment.
plus any other relevant supplementary pages.

pjclar02

suso wrote: »

perhaps the worse advice given in the history of this forum, a new low chrismac.

I think that is a fairly harsh comment. My view of the two following quotes is that they both essentially say the same thing, albeit suso has gone into slightly more detail and used slightly clearer terminology. Perhaps had Chrismac1 referred to "self-employment pages" instead of "self-employment returns" it would have been clearer, but doesn't warrant the accolade of "worst advice in the history". I've seen much worse on this forum.

chrismac1 wrote: »

You'd normally complete one set of self-employment returns for each separate business for which accounts are being done.

suso wrote: »

On the return, you declare all forms of income, if you have more than one form of self employment you are required to declare each separate business income on a supplementary page. .

chrismac1

Apologies, I had made the erroneous assumption that posters would know it was only possible to submit one SA tax return per taxpayer. For those who did not know that I apologise. I should have used the word "pages" and not "returns".

jimmo

It probably depends on what income streams you are talking about.

If you trade as a bricklayer, plasterer and plumber that could be 3 separate businesses or you could lump the lot together and call yourself a general builder.

If you are a Betterware agent, leaflet distributor and driving instructor it might be more sensible to regard the first two as one business and the driving instruction as a separate business, but, as far as HMRC is concerned, it is up to you to decide how many businesses you run and to make the appropriate Returns.

I would suggest that if you have 3 separate income streams and the combined turnover is below the VAT threshold you should put the lot down as one business and complete only one set of the short version of the self-employment pages.

What you absolutely shouldn’t do is to let the (tax) tail wag the dog. If you have sound reasons for regarding your 3 income streams as 3 separate businesses then you would, or should, also be preparing profit and loss accounts for each business and complete 3 sets of self employment pages, basing each set on the accounts for each business.

If you see the lot as a single business of generating income for you then completing 3 sets of self employment pages is going to be a complete waste of your own time.

chrismac1

Agree the last post which I attempted to summarise in a one-liner just as the kids were asking for a game of cards, a bit hasty.

PlutoinCapricorn

As HMRC only require itemised lists when the total income is over £50,000 or so and just 3 amounts when it is under, I would combine the income streams where possible. You can keep separate, fully itemised lists for your own purposes.

If I earned a little bit of miscellaneous income here and a little bit there - mystery shopping, completing surveys, dog walking etc. i.e. did not have one or more real businesses, I would combine the earnings.

If I did have two or more major sources of freelance income that were very different e.g. online research and painting & decorating, I would probably separate them.