»

Sole trader then employed - help please

New Post Advanced Search

Coronavirus: The latest from MSE


The MSE team is working extremely hard to keep the info we have about your travel rights, cancellation rights, sick pay (and more) up to date.
The official MSE guides: NEW MSE Coronavirus Guides

NEWSFLASH
FOREIGN OFFICE TRAVEL ADVICE * FURLOUGH UPDATE * MORTGAGE LENDING

Sole trader then employed - help please

4 replies 145 views
betweenrolesbetweenroles Forumite
2 posts
First Post
MoneySaving Newbie
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.

Replies

  • edited 25 March at 12:58PM
    Mistral001Mistral001 Forumite
    4.5K posts
    Eighth Anniversary 1,000 Posts I've been Money Tipped!
    ✭✭✭✭
    edited 25 March 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.  

  • betweenrolesbetweenroles Forumite
    2 posts
    First Post
    MoneySaving Newbie
    Many thanks Mistral001 - I'll register and take it from there.  All the best
  • Savvy_SueSavvy_Sue Forumite
    41.4K posts
    Part of the Furniture 10,000 Posts Name Dropper I'm a Volunteer Board Guide
    ✭✭✭✭✭
    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. 
    Still knitting!
    Completed: TWO adult cardigans, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees, 2 sets of handwarmers, 1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 3 balaclavas, multiple hats and poppies, 3 peony flowers, 4 butterflies ...
    Current projects: pink balaclava (for myself), seaman's hat, about to start another cardigan!
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support