Same Sole Trader Business Name

Rainbow_Tea

Hi, 
In January I'm due to become self employed as a sole trader. I've been offered the chance to use the same business name that my friend previously used for his own sole trader business. He no longer actively runs the business now, so I would be taking the name (and hopefully reputation). I would register the same business name, but trading as me and not him as I'll be a sole trader. There's no trademark on the business name and it would be through new bank accounts, websites and systems etc. Logistically it is an entirely separate business, but just using the same business name apart from the 'trading as' part. Does my friend need to inform HMRC that he is no longer trading to close it down? I don't want to get myself into hot water. We do also live locally. I know advice is not to register the same business name as someone locally to avoid confusion, but we're not going into competition with each other.

Any help much appreciated. 

Sandtree

In business you have the official legal entity name and trading names. As a sole trader you personally are the legal entity and therefore the business is "Rainbow_Tea" however you can have as many different trading names as you want... your invoices, website etc will just have to say Rainbow_Tea T/A Rain Coffee  (or whatever).

There is no register of trading names unless you want to trademark it and so nothing to do on that front. To avoid any future falling outs etc it may be sensible to get something from your friend confirming they have consented to you using the same trading name as they previously used.

HMRC are only interested in matters if it changes your friends needs to do a Self Assessment return and have no interests in trading names. Assuming it was the only reason they were doing SA and they are now an employee or retired etc then they can inform HMRC and stop doing SA or technically they could continue doing them if they find them fun or otherwise helpful.

Mistral001

Good advice from Sandtree.  
I would add that goodwill can have a value and should your new business do well and your friend and you fall out, they might try to get you to pay for the goodwill that came with the name.  I would get proper legal advice on the matter to ensure that all loose ends are tied up.