Sole trader question

Percy1983

I will say my business started as a hobbie, but I was nil profit as I offered my services to a school and they paid for all materials.

I did check with HMRC at the time and they where happy with this.

Of course after a few years I gain experience and started getting interest from other potential customers, at that point I declared it and started trading.

I will say for me it was a very clear line from hobbie to business and can see how the line might not always be as clear but from what is being said here it does look like they have been trading for profit since day one so HMRC may not be best pleased.

tom.senex

Thanks - I have told them to get in touch with a local accountant. Will let you know what happens now. I have also clarified the benefits issue, and they don't get any payments - I believe he's on a good wage and didn't realise their accommodation is linked to his employment. Thanks again. Thom.