Two small sole trader businesses - combine on tax return?

antrobus

zygurat789 wrote: »

I would entirely agree but then, at some point, their attitude will change, it's always better to be ahead of the game.

The one certainty with tax is that the rules will change at some point in the future.

But I can't see HMRC giving much priority to the question of what is or isn't a separate trade, if only because I can't really think of any circumstances where it would make a difference to the amount of tax that would be payable.

zygurat789

antrobus wrote: »

The one certainty with tax is that the rules will change at some point in the future.

But I can't see HMRC giving much priority to the question of what is or isn't a separate trade, if only because I can't really think of any circumstances where it would make a difference to the amount of tax that would be payable.

http://www.taxadvisermagazine.com/article/thorne-side

I was referring to this.

antrobus

zygurat789 wrote: »

http://www.taxadvisermagazine.com/article/thorne-side

I was referring to this.

I see what you mean.

I was originally thinking in terms of loss relief, as since you can always claim loss relief, it doesn't really matter whether you have one trade or two. But obviously it would matter, if HMRC regarded one of those trades as non-commercial and wanted to disallow the loss relief.

HMRC has always had a thing about hobby farming and horses in general.:)