Starting 2 business's can I have one account?

Mumaj

I say starting two business's but they are both part time.

One is really a paying hobby. Photography. The other is mobile hairdressing. Which I have done in the past.

The photography is going to be rare. Maybe not even one a month.

I don't want to have to worry about 2 sets of tax returns. Can I have it as one business?

Thanks

anamenottaken

Mumaj wrote: »

I say starting two business's but they are both part time.

One is really a paying hobby. Photography. The other is mobile hairdressing. Which I have done in the past.

The photography is going to be rare. Maybe not even one a month.

I don't want to have to worry about 2 sets of tax returns. Can I have it as one business?

Thanks

Sounds as though these two businesses are both aspects of self-employment.

You don't do a tax return for such businesses as such, you complete a tax return to include your self-employment. You can split the figures between more than more business but that is not necessary.

You can use a single bank account for the two businesses as long as payments are being made to a single name (eg Mumaj Services) - but not two (eg Mumaj snaps and Mumaj coiff).

martindow

I would keep separate accounts for each business so that the expenses relate to the income stream. If you put them together you won't be able to see how profitable (or not) each is.

LittleVoice

martindow wrote: »

I would keep separate accounts for each business so that the expenses relate to the income stream. If you put them together you won't be able to see how profitable (or not) each is.

Agree for bookkeeping/management accounting purposes but that doesn't have to mean two current accounts.

nomunnofun

anamenottaken wrote: »

Sounds as though these two businesses are both aspects of self-employment.

You don't do a tax return for such businesses as such, you complete a tax return to include your self-employment. You can split the figures between more than more business but that is not necessary.

QUOTE]

I agree that everyone who is self-employed must complete a tax return and, as part of that tax return, must complete a self-employment page. However one MUST complete self employed pages for each business.

If you have more than one business you need to complete a set of Self-employment pages for each business even if you have one set of accounts covering all your businesses.

http://www.hmrc.gov.uk/helpsheets/hs220.pdf

Wywth

Thread was presumably started as a result of the discussion that ensued from this recent thread:
https://forums.moneysavingexpert.com/discussion/4747526

But if not, I suggest you read it too - it confirms what nomunnofun has posted

anamenottaken

nomunnofun wrote: »

anamenottaken wrote: »

Sounds as though these two businesses are both aspects of self-employment.

You don't do a tax return for such businesses as such, you complete a tax return to include your self-employment. You can split the figures between more than more business but that is not necessary.

QUOTE]

I agree that everyone who is self-employed must complete a tax return and, as part of that tax return, must complete a self-employment page. However one MUST complete self employed pages for each business.

If you have more than one business you need to complete a set of

Self-employment pages for each business even if you have one set of accounts covering all your businesses.

http://www.hmrc.gov.uk/helpsheets/hs220.pdf

The single business would be one which offered photography and hairdressing services. Or would someone offering various items (eg on E-bay) need to have one business selling books, another selling clothes and yet another business selling 50s memorabilia?

Wywth

[QUOTE=anamenottaken;62961689
The single business would be one which offered photography and hairdressing services. Or would someone offering various items (eg on E-bay) need to have one business selling books, another selling clothes and yet another business selling 50s memorabilia?[/QUOTE]

Why not go the whole hog and suggest selling books on eBay by say Enid Byton is a different business to selling books on ebay by JK Rowling? :cool:

I would suggest anyone selling items (as a business) on ebay is running one business classed as internet retailing, mail order, etc.

But if you did want to split it up (perhaps for better management control), then I see no reason why it couldn't be considered more than one business.

Percy1983

It may be hard to class it as one business as they are very seperate industries.

In my case I have a video business and I have added photography as an additional service but the 2 aren't too far apart and actually both get booked for some events.

The tax return isn't a big issue, its one tax return and then a form for each business which then come together to make a total on the return.

colino

I don't think the personal services of turning up with skills, knowledge, experience and equipment for photography are miles apart from the same for hairdressing. Two strings to one persons bow.

Percy1983

colino wrote: »

I don't think the personal services of turning up with skills, knowledge, experience and equipment for photography are miles apart from the same for hairdressing. Two strings to one persons bow.

Look at it this way, if you looked up a hairdresser online I wouldn't expect to see "we also do photography".

Likewise I would expect "we also do hair dressing" on a photography site.

You could use an umbrella name, ie Bob's enterprises, which has Bob's Photography and Bob's Hairdressing.

I am not saying don't do both, just trying to run them as a single company may seem a little odd to the customer if nothing else.