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Bank account closed, nowhere to go.
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So, for arguments sake say I sell my car for £7,000. I replace it with another car costing £3,000. I've made £4,000, therefore do I need to declare that I'm self employed?NedS said:
From HMRC's perspective, if you make more than £1000 per year (before expenses) then you need to be registered with HMRC as self employed (so you have a business). Now I'm not an expert when it comes to dogs, but from the prices I've heard that puppies sell for, and the average number of puppies per litter, I would guess that by HMRC's definition, selling just one litter is easily going to put you over the limit as what would be considered a business. So at the very least I would hope your friend is registered with HMRC as self employed, is submitting self assessment tax returns annually, and for the purposes of this forum, will need a business bank account. IMHO Barclays are well within their rights to close the account.TomBo91 said:Forgive my lack of knowledge on this, however why is privately selling one litter of pups a year a business?
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That's not the way economics work.TomBo91 said:
So, for arguments sake say I sell my car for £7,000. I replace it with another car costing £3,000. I've made £4,000, therefore do I need to declare that I'm self employed?NedS said:
From HMRC's perspective, if you make more than £1000 per year (before expenses) then you need to be registered with HMRC as self employed (so you have a business). Now I'm not an expert when it comes to dogs, but from the prices I've heard that puppies sell for, and the average number of puppies per litter, I would guess that by HMRC's definition, selling just one litter is easily going to put you over the limit as what would be considered a business. So at the very least I would hope your friend is registered with HMRC as self employed, is submitting self assessment tax returns annually, and for the purposes of this forum, will need a business bank account. IMHO Barclays are well within their rights to close the account.TomBo91 said:Forgive my lack of knowledge on this, however why is privately selling one litter of pups a year a business?
I assume you paid £7000 or more for the original car.0 -
Like I said it was for arguments sake. I'm just trying to understand why someone who sells a few puppies once a year would have to be declared as self employed.pramsay13 said:
That's not the way economics work.TomBo91 said:
So, for arguments sake say I sell my car for £7,000. I replace it with another car costing £3,000. I've made £4,000, therefore do I need to declare that I'm self employed?NedS said:
From HMRC's perspective, if you make more than £1000 per year (before expenses) then you need to be registered with HMRC as self employed (so you have a business). Now I'm not an expert when it comes to dogs, but from the prices I've heard that puppies sell for, and the average number of puppies per litter, I would guess that by HMRC's definition, selling just one litter is easily going to put you over the limit as what would be considered a business. So at the very least I would hope your friend is registered with HMRC as self employed, is submitting self assessment tax returns annually, and for the purposes of this forum, will need a business bank account. IMHO Barclays are well within their rights to close the account.TomBo91 said:Forgive my lack of knowledge on this, however why is privately selling one litter of pups a year a business?
I assume you paid £7000 or more for the original car.
Having done a lot of research when looking for a puppy myself years ago, I can tell you that a huge percentage of private dog breeders are not registered as self employed or a business, because they don't think they are that. Look at all the private dog ads on websites like gumtree or pets4homes, they are all individuals.0 -
Because they are breeding them with the intention of selling them for profit, and doing it on an ongoing basis.TomBo91 said:
Like I said it was for arguments sake. I'm just trying to understand why someone who sells a few puppies once a year would have to be declared as self employed.pramsay13 said:
That's not the way economics work.TomBo91 said:
So, for arguments sake say I sell my car for £7,000. I replace it with another car costing £3,000. I've made £4,000, therefore do I need to declare that I'm self employed?NedS said:
From HMRC's perspective, if you make more than £1000 per year (before expenses) then you need to be registered with HMRC as self employed (so you have a business). Now I'm not an expert when it comes to dogs, but from the prices I've heard that puppies sell for, and the average number of puppies per litter, I would guess that by HMRC's definition, selling just one litter is easily going to put you over the limit as what would be considered a business. So at the very least I would hope your friend is registered with HMRC as self employed, is submitting self assessment tax returns annually, and for the purposes of this forum, will need a business bank account. IMHO Barclays are well within their rights to close the account.TomBo91 said:Forgive my lack of knowledge on this, however why is privately selling one litter of pups a year a business?
I assume you paid £7000 or more for the original car.
Having done a lot of research when looking for a puppy myself years ago, I can tell you that a huge percentage of private dog breeders are not registered as self employed or a business, because they don't think they are that. Look at all the private dog ads on websites like gumtree or pets4homes, they are all individuals.
How is that not a business?2 -
If that is the case then why do HMRC not clamp down on breeders?John_ said:
Because they are breeding them with the intention of selling them for profit, and doing it on an ongoing basis.TomBo91 said:
Like I said it was for arguments sake. I'm just trying to understand why someone who sells a few puppies once a year would have to be declared as self employed.pramsay13 said:
That's not the way economics work.TomBo91 said:
So, for arguments sake say I sell my car for £7,000. I replace it with another car costing £3,000. I've made £4,000, therefore do I need to declare that I'm self employed?NedS said:
From HMRC's perspective, if you make more than £1000 per year (before expenses) then you need to be registered with HMRC as self employed (so you have a business). Now I'm not an expert when it comes to dogs, but from the prices I've heard that puppies sell for, and the average number of puppies per litter, I would guess that by HMRC's definition, selling just one litter is easily going to put you over the limit as what would be considered a business. So at the very least I would hope your friend is registered with HMRC as self employed, is submitting self assessment tax returns annually, and for the purposes of this forum, will need a business bank account. IMHO Barclays are well within their rights to close the account.TomBo91 said:Forgive my lack of knowledge on this, however why is privately selling one litter of pups a year a business?
I assume you paid £7000 or more for the original car.
Having done a lot of research when looking for a puppy myself years ago, I can tell you that a huge percentage of private dog breeders are not registered as self employed or a business, because they don't think they are that. Look at all the private dog ads on websites like gumtree or pets4homes, they are all individuals.
How is that not a business?0 -
On a practical front, get an account with one of the app only mastercard debit places like Hyperjar. Takes minutes to open, and day or two get a card (a downside with the one I suggested is that it doesn't allow ATM use)
Open a savings account with a different bank/building society/post office/etc, and keep most of your money there, obviously with an ATM card, and then transfer money around / make payments using faster payments0 -
I've already suggested this to her, however she has Direct Debits that need to be met. Apparently you can't claim DDs from a card only account.tehone said:On a practical front, get an account with one of the app only mastercard debit places like Hyperjar. Takes minutes to open, and day or two get a card (a downside with the one I suggested is that it doesn't allow ATM use)
Open a savings account with a different bank/building society/post office/etc, and keep most of your money there, obviously with an ATM card, and then transfer money around / make payments using faster payments0 -
A more full service app bank like Monzo will be a better long term solution to allow things like DD, but in the interim until she finds our more about why there is CIFAS marker and what she can do then I think in the interim she'll have to make the payments by "hand" instead of DD for the moment.
FWIW, I suspect there is more to the story than she has told you, and that may be worth investigating.0 -
To be fair, if you bought certain classic cars, it is not beyond the realms to sell it a year later for a profit especially if you buy well and add a bit TLC.pramsay13 said:
That's not the way economics work.TomBo91 said:
So, for arguments sake say I sell my car for £7,000. I replace it with another car costing £3,000. I've made £4,000, therefore do I need to declare that I'm self employed?NedS said:
From HMRC's perspective, if you make more than £1000 per year (before expenses) then you need to be registered with HMRC as self employed (so you have a business). Now I'm not an expert when it comes to dogs, but from the prices I've heard that puppies sell for, and the average number of puppies per litter, I would guess that by HMRC's definition, selling just one litter is easily going to put you over the limit as what would be considered a business. So at the very least I would hope your friend is registered with HMRC as self employed, is submitting self assessment tax returns annually, and for the purposes of this forum, will need a business bank account. IMHO Barclays are well within their rights to close the account.TomBo91 said:Forgive my lack of knowledge on this, however why is privately selling one litter of pups a year a business?
I assume you paid £7000 or more for the original car.0 -
She's already tried Monzo and been rejected.tehone said:A more full service app bank like Monzo will be a better long term solution to allow things like DD, but in the interim until she finds our more about why there is CIFAS marker and what she can do then I think in the interim she'll have to make the payments by "hand" instead of DD for the moment.
FWIW, I suspect there is more to the story than she has told you, and that may be worth investigating.
Yeah I'm suspecting that myself.0
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