Do I need to register for self assessment?

alpha2211

I had planned on setting up a web design business but I've never really been motivated enough to really kick start it. I completed a freebie for my friend's sister a while ago & asked her to cover the running costs.

I have been paying the hosting company £40 per year and sending her an invoice from me for her business.

Do I need to go through the hassle of properly registering a business with HMRC and submitting a tax return each year for the sake of 40 quid??

Savvy_Sue

If you are paying £40 and receiving £40 then no.

If you are paying £40 and receiving more than that, then maybe, you may be able to deal with the additional income without registering for self-assessment, but easiest if you clarify first.

InsideInsurance

Why bother having it in your name and rebilling her the same amount?

Is her business VAT registered? If it is then it'd benefit her to go direct with the host too to reclaim that

alpha2211

Hi, thanks for the responses.

If you are paying £40 and receiving £40 then no.

Yes this is the case. Does this apply even if I am invoicing her? I don't know if that's the wrong thing to do.

Why bother having it in your name and rebilling her the same amount?

Because I run other websites from the same account, it's just easier to have it all 'under one roof' so to speak.

Is her business VAT registered?

No, it's not, she's only just starting out.

Mistral001

Yes I see your problem. The fact that you have issued an invoice means that you are trading. An invoice in this situation is not appropriate at all in my view. You agreed to do something for costs. That is all.

It is like agreeing to erect a friend's friend's garden fence for free long as the paid for the materials or agreeing to share petrol costs on a trip in your car as far as I can see. No need for an invoice.