Second small business

Denbyas

Hi there
i currently work PT for an employer, but I also run a small stationery business which is registered with HMRC for the past year and a half.

however, I have a new venture I wish to start very soon.  I am happy to let the stationery business close as it was only a hobby that did very well that I had to register for tax.

my question is, I registered as Self Employed and documented my stationery business when doing this (they asked about your business name and business type.

if I wish to create a second business but close the original business, is this complicated to do?  I did see in last years tax return that it asked if you had any additional businesses but at the time I only had one.
I have all expenses/sales logged in my Quickbooks SE account so creating tax info for my stationery business is easy.

Any advice would be lovely, when it comes to tax/legal, I can get a little flustered to make sure I do this correctly.

Jeremy535897

If the stationery business has ceased, complete the form SA103 as usual, putting in the date of cessation. Use a new SA103 to record the details for your new business, with the appropriate start date. There is no need to register as self employed again. They may not collect class 2 NIC for any gap between the two. Is this relevant? Are any assets to be transferred from the old business to the new one?

Denbyas

Jeremy535897 said:

If the stationery business has ceased, complete the form SA103 as usual, putting in the date of cessation. Use a new SA103 to record the details for your new business, with the appropriate start date. There is no need to register as self employed again. They may not collect class 2 NIC for any gap between the two. Is this relevant? Are any assets to be transferred from the old business to the new one?

Thanks so much Jeremy,
I wasn’t sure how to go about closing the stationery business.
it was only a hobby so there was no loans etc to pay off and I am under the £1k threshold so at this moment, there is no tax to be paid.

as for additional assets, there little to none and I am the sole member and second company is funded by myself too so I was hoping this would be a simple start up once the obstacle of closing the other business are sorted.

Jeremy535897

If the turnover of the stationery business was £1,000 or less, you didn't need to register as self employed, but as you say you have done, that will suffice for the new business. I also assume that the use of the word "company" does not mean that these trades are carried on by one or more limited companies, but just you as a sole trader?

Denbyas

Sorry, missed this reply,
yes sorry I am a sole trader.
I registered last year as I had hit over £1000 but this year I haven’t really been trading so I’m only a couple of 100.

I will look into this and close my stationery business snd once my website etc is ready for my second business, I will contact them again and set up the new business.
thanks so much for the advice

HehnryBlck

So, having the turnover of the business <£1,000 doesn't require any registrations?

Jeremy535897

HehnryBlck said:

So, having the turnover of the business <£1,000 doesn't require any registrations?

No it doesn't.

HehnryBlck

So, having the turnover of the business <£1,000 doesn't require any registrations? I plan to open a small startup for my son, and a limit of 1000 pounds seems okay for me. After Brexit, I don't even know what to expect from UK business policy. I have been running a clothing business for 10 years, expanded it throughout Europe via https://innovation-park.eu/. And now I should follow two different approaches for my EU branch and UK one. I respect the UK's right for defining its own future, but Brexit was a disaster for big businesses.

Jeremy535897

£1,000 turnover a year is under £20 of sales a week. That sounds like a very small startup.