Sole Trading & Insurance

LornaLee123

Hi, I have a couple of questions...

I am currently sole trading under my full name and have a virtual assistant business but also now am a massage therapist. Can I run both these companies under my full name for hmrc? I have called my massage company something different ( i think this is referred to as Trading name) but I haven't put it down as my sole trading name can i keep both of these business under my full name?

Also when it comes to be getting insured for my massage business do I put the business under my full name or my trading name or doesn't it matter? 

thanks!

DullGreyGuy

They are "businesses" not "companies", the later would suggest that you have an incorporated entity (ie a Limited Company). 

As a sole trader you can have as many businesses as you want using as many trading names/styles as you want. When it comes to any formal documentation (contract, invoices etc) you must identify the legal entity involved which is you personally (ie your name/address has to be there, on an invoice it can be at the footer like Loran Lee t/a Lee's Temps and the big logo at the top etc can be all Lee's Temps).

When reporting to HMRC you are given the choice of separating them or combining them, for self assessment it makes no difference. Things get a bit more complex when it comes to VAT.

Insurance will require you to name the legal entity thats being insured (ie your name) however many insurers allow you to also declare a trading name if you want to. Similarly you could have 1 policy that covers both businesses or have separate ones for each business. 

LornaLee123

this is so helpful thank you so much @DullGreyGuy - no not limited companies, im just a sole trader trying to set up a couple of small freelance things. Thank you for all of the info, I get so overwhelmed with things like this.