Tax Advice

Premium

Hi,
I registered as a sole trader a few years ago for my business i own (no employees) Just me that works on it.

I live in the uk, born and raised.

However recently ive been working on an online project which i intend to launch soon, and i wandered if i could get a second tax id?

I don't want the same tax id as the previous one as i want it completely separate.

Is there a way to do this? is it even legal? I looked into making the company LTD thinking that would do the trick, but as it doesnt even earn a penny yet i think thats probably a silly idea?

Can anyone give me some advice please

Many thanks.

HappyMJ

Premium wrote: »

Hi,
I registered as a sole trader a few years ago for my business i own (no employees) Just me that works on it.

I live in the uk, born and raised.

However recently ive been working on an online project which i intend to launch soon, and i wandered if i could get a second tax id?

I don't want the same tax id as the previous one as i want it completely separate.

Is there a way to do this? is it even legal? I looked into making the company LTD thinking that would do the trick, but as it doesnt even earn a penny yet i think thats probably a silly idea?

Can anyone give me some advice please

Many thanks.

The only way to make it separate is to set up a Ltd. company.

Setting up a Ltd. company is essentially free. Go through a formations company that refers you to a bank and gives you cash back for opening a bank account which is required anyway. Costs about £30 and you get £30 back once the account is opened. Then you just need to fill in the forms on time each year saying the company is dormant if it isn't trading yet. Once you start trading you are all set and can just start trading instantly rather than waiting a week to set things up.

Premium

Whats the pros and cons of going LTD?
I dont know much about it to be honest.
How do i deal with my tax, do i send it to another company/accountant first?

Thanks for the reply!

HappyMJ

Premium wrote: »

Whats the pros and cons of going LTD?
I dont know much about it to be honest.
How do i deal with my tax, do i send it to another company/accountant first?

Thanks for the reply!

You deal with tax the same way as your sole trader activities. You keep every receipt and offset that against any income of the company. The pro's are less tax to pay due to being paid in dividends avoiding the payment of national insurance. The cons are the paperwork and record keeping but as a sole trader you should be used to most of that anyway.

If you have a lot of transactions then it's worth seeking the advice of an accountant but you sound like it's rather small to start with so wouldn't have much income yet.

Premium

Great, do you recommend the best place for me to register as a LTD company?

It also mentions about shareholders etc, as im the only one in the business and intend to have no employees in the future should i mention myself as the whole shareholder?

Someone told me its not good to register as a LTD company if the company isnt turning over 80k a year? Why would that be the case?

Also will their be guides on what paperwork/record keeping is needed and how it is displayed?

I've been using a family accountant while being a sole trader and i want to detach myself from that.

Thanks

Premium

Sorry but Bump

Premium

Premium wrote: »

Great, do you recommend the best place for me to register as a LTD company?

It also mentions about shareholders etc, as im the only one in the business and intend to have no employees in the future should i mention myself as the whole shareholder?

Someone told me its not good to register as a LTD company if the company isnt turning over 80k a year? Why would that be the case?

Also will their be guides on what paperwork/record keeping is needed and how it is displayed?

I've been using a family accountant while being a sole trader and i want to detach myself from that.

Thanks

Could you reply to my questions please i know you may be busy but your the first person ive actually spoke to that sounds like they no what there talking about

somethingcorporate

Why not ask your accountant?

This stuff is all very basic so have a look through business link or similar websites rather than asking some very generic questions that have been answered a billion times our in the ether.

Premium

somethingcorporate wrote: »

Why not ask your accountant?

This stuff is all very basic so have a look through business link or similar websites rather than asking some very generic questions that have been answered a billion times our in the ether.

Because i dont want my family knowing about this business yet. and yes it may be simple questions to you guys that are educated on it, but to someone like me i cant get my head around it. Also if you have any answers to my questions then please answer them rather them.

Thankyou.

sweetietot

A limited company has a lot more paperwork involved - annual returns for Companies House and corporation tax. Also you as a director would be an employee of the ltd company so would need to complete employer paperwork.
You would also declare your income from this venture on your personal tax return so if your family accountant is doing your tax return he would need to know about it.
I would definitely recommend talking to an accountant or doing some in depth research. http://search.hmrc.gov.uk/kb5/hmrc/hmrc/results.page?qt=limited+company

jimmo

In pure tax terms you simply cannot have a second ID.

You are you. End of.

You can have more than one (self-employment) business. In that case you would have to make one Tar Return, completing separate self-employment pages for each business.

You can be self-employed in one business and be a director of your own limited company which runs a separate business.

In that case you, personally, would still have to make one Tax Return, completing one set of self-employment pages for your self-employment and one set of employment pages for your directorship.

Either way around, the person who completes your Tax Return will have to know.

So, if you can’t trust your “family accountant” to deal with your tax affairs confidentially you will need to sack him or her and either get a new accountant or do your own Tax returns.