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Sole trader then employed - help please

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betweenroles
betweenroles Posts: 2 Newbie
First Post
edited 24 March 2020 at 4:17PM in Small biz MoneySaving
Hi folks
Just wondering if I could get a bit of advice please?
In Sep 2019, I took voluntary redundancy.  In November 2020 I set up as a sole trader and made around £3000 between then and now.   I didn't register with HMRC as I know you have until 5th October 2020 to notify them.
I'm due to start a new job at the end of March which is permanent.  It means I'll no longer make any money from the sole trader job.
Can I set up the sole trader company and then immediately close it, just so that I'm registered for that period between Jan-Mar 2020?
Will that effect my tax code in any way - re: the new employer?  Should I wait until I'm established at the new job and then do it?
Many thanks in advance.

Comments

  • Mistral001
    Mistral001 Posts: 5,427 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    edited 25 March 2020 at 12:58PM
    As a sole trader you are personally responsible for all debts and financial responsibilities from your business activities.  That includes paying personal income tax on all profits made by the business activities.  Even if you have a business trading name, website, shop etc, the above is still true.  HMRC say that sole traders must "register" the business with them, but that is only so they can check up on your business activities and ensure that you are paying your personal income tax generated by that business.  
    So think "you" and not "the business" when dealing with tax matters if you have a sole-trader business.  

  • Many thanks Mistral001 - I'll register and take it from there.  All the best
  • Savvy_Sue
    Savvy_Sue Posts: 47,300 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I presume you mean 'register as self-employed' - which is all you need to do, and that you're NOT thinking of setting up a Ltd Company, which would probably not be a good move in this situation. 
    Signature removed for peace of mind
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