HMRC registration help please

jake_bullet

Hi all,

New to the forum, so please be gentle:)

I need some advice on if/what I need to inform HMRC about for a 2nd business.

I registered with HMRC as self employed a couple of years ago, at the time I was in full time employment but I also have an eBay shop generating a second income.

I have since recently left full time employment and started my own business as a sole trader, as well as continuing to run the eBay shop to support myself.

So, do I need to inform HMRC again? or can I just complete one tax return for both businesses combined as I am a sole trader?

All thoughts and answers greatly appreciated.

dktreesea

We have several businesses, some sole trader, some partnership. We just report our shares for each of the businesses separately.

If you don't have this complication, i.e. are the sole owner of both businesses, you could set up your profit and loss so you have the variable parts of the business above the gross margin and the overheads that apply to both businesses below the gross margin.

So:

Business A
Sales
minus cost of goods sold
= gross profit business A xxxx

Business B
Sales
minus cost of goods sold
= gross profit business B xxxx

Total Gross Profit XXXX (GP business A plus GP business

Less overheads:
premises rent
transport
advertising etc -yyyy

Net profit ZZZZ (XXXX - yyyy)

So the net profit is the figure that goes in the tax return.

phill99

You don't need to register again. How you generate your income as a sole trader is irrelevant to HMRC. You could be a life model, distributor of widgets and a plumber. As long as your tax affairs are in order, HMRC wont really be interested how your income is acquired.

Aquamania

jake_bullet wrote: »

Hi all,

New to the forum, so please be gentle:)

I need some advice on if/what I need to inform HMRC about for a 2nd business.

I registered with HMRC as self employed a couple of years ago, at the time I was in full time employment but I also have an eBay shop generating a second income.

I have since recently left full time employment and started my own business as a sole trader, as well as continuing to run the eBay shop to support myself.

So, do I need to inform HMRC again? or can I just complete one tax return for both businesses combined as I am a sole trader?

All thoughts and answers greatly appreciated.

One tax return. A separate page for each business. No emplyment page (if you were not employed that tax year)

When you start to fill in the return online, it will ask you various questions so you get the right pages for you.
If you do it manually off-line, there is a questionaire at the beginning to check you have the correct pages (if you need more, contact the taxman)

jake_bullet

Thanks guys, appreciate the advice:T