Register trading name while earning less than £1K

tamworthy

Hello all,

I am interested in setting up as a sole trader with a business name (trading name) for my ad-hoc freelance work.

My income has been less than £1,000 annually so far, but I'd like to make it more professional and trade under a business name (and get paid via a sole trader bank account).

Here's the problem, since I can use the £1,000 tax-free allowance, I don't need to register with HMRC; but according to the HMRC guide,

You can trade under your own name, or you can choose another name for your business. You do not need to register your name.

In this case, do I need to register with HMRC to make my business name legal even though I don't earn more than £1K?

Any input would be helpful. Thank you and take care!

Jeremy535897

Registering with HMRC is an entirely separate matter. What is your concern? Someone else using the same name? Probably not an issue for less than £1,000 turnover, but see, for example:
https://www.thecompanywarehouse.co.uk/sole-trader-business-names

You don't need them to register yourself with HMRC, should the need arise. You can do it yourself.

tamworthy

Thanks, Jeremy535897, for the useful link. My main concern is whether or not I can use a "trade as" name legally while not having set up as a sole trader by means of registering for self-assessment with HMRC. 

I mean, so far, I don't need to report my income as it's really ad hoc and it's within the allowance. But, of course, if it's over £1,000, I can do self assessment as well as having the trading name registered. But I just wonder if I could "start now" and use a trading name on invoices and stuff. 

Dazed_and_C0nfused

But I just wonder if I could "start now" and use a trading name on invoices and stuff. 

What makes you think can't?

tamworthy

Hi Dazed_and_C0nfused,

I referred to the HMRC guide on setting up as a sole trader, which says:

Naming your business

You can trade under your own name, or you can choose another name for your business. You do not need to register your name.

so I presume not needing to register my own name means I need to do otherwise if I have a trading name. 

Dazed_and_C0nfused

tamworthy said:

Hi Dazed_and_C0nfused,

I referred to the HMRC guide on setting up as a sole trader, which says:

Naming your business

You can trade under your own name, or you can choose another name for your business. You do not need to register your name.

so I presume not needing to register my own name means I need to do otherwise if I have a trading name. 

Register with whom?

As far as I'm aware there is no legal register of sole traders business names.

But irrespective of that to me that part of gov.uk means if you choose a trading name you don't need to register it.

tamworthy

Dazed_and_C0nfused said:

tamworthy said:

Hi Dazed_and_C0nfused,

I referred to the HMRC guide on setting up as a sole trader, which says:

Naming your business

You can trade under your own name, or you can choose another name for your business. You do not need to register your name.

so I presume not needing to register my own name means I need to do otherwise if I have a trading name. 

Register with whom?

As far as I'm aware there is no legal register of sole traders business names.

But irrespective of that to me that part of gov.uk means if you choose a trading name you don't need to register it.

Argh, I think I might've misunderstood it from the start. Thanks a lot for your help!

Sandtree

Dazed_and_C0nfused said:
Register with whom?

As far as I'm aware there is no legal register of sole traders business names.

There is no legal register of trading names full stop other than certain regulated industries where companies must identify themselves. 

Almost all businesses use a trading style, some are fully belts and braces about it too and will have the equivalent of John Lewis plc t/a John Lewis as a declaration as technically not having Ltd/plc etc in their branding means its a style and not their legal name. 

tamworthy

Sandtree said:

Dazed_and_C0nfused said:
Register with whom?

As far as I'm aware there is no legal register of sole traders business names.

There is no legal register of trading names full stop other than certain regulated industries where companies must identify themselves. 

Almost all businesses use a trading style, some are fully belts and braces about it too and will have the equivalent of John Lewis plc t/a John Lewis as a declaration as technically not having Ltd/plc etc in their branding means its a style and not their legal name. 

That's a clear example, thanks a lot!

Mistral001

HMRC's use the  word "registering" in connection with people who become self employed is unfortunate in my view.  By doing so it has helped to create almost an urban myth that there are official registers of businesses and trading names.  There are no such lists as has been said.  There is no legal requirement to register a business or to register a trading name of that business on a register.  HMRC however must be told of any trading name that you use as it helps them in the prevention of tax fraud. 

tamworthy

Mistral001 said:

HMRC's use the  word "registering" in connection with people who become self employed is unfortunate in my view.  By doing so it has helped to create almost an urban myth that there are official registers of businesses and trading names.  There are no such lists as has been said.  There is no legal requirement to register a business or to register a trading name of that business on a register.  HMRC however must be told of any trading name that you use as it helps them in the prevention of tax fraud. 

That is exactly where the confusion lies. Thank you so much for clarifying. I do hope lot more people could start flying solo pronto without much hesitance due to the potential of having to do so much paperwork. Thanks again for your help!