Setting up advice

LightKnow

Hi everyone, I need some thoughts and or advise. Hope this right place 


So if I set up two side hustle or small business 

1. Selling cards 
2. Small therapy sessions 

am thinking having them both under one brand but separate identity ( potentially same logo ?) Amazon do this in sense right ? They have there wholesale side and game development side ?

If I do go this route, Am assuming it best to register these under like parent account either as business or sole trader 

tacpot12

This question and answer on the HMRC Community Forum should help in respect of setting up as a Sole Trader:

Registering as a Sole Trader for Multiple Business Activities: Single or Multiple UTRs? - Community Forum - GOV.UK

When the businesses are sharing a brand, it's really up to you whether you regard the businesses as separate or just one business. The OP that asked the question is proposing to run two quite distinct businesses. e.g. they are likely to have completely different customers.

Just have a think about whether you really are running two separate businesses, or are you running one business with multiple products. 

If you incorporate (i.e. become a limited company), you have more certainty as the Articles of Association set out what the trade of the business is to be. Most Articles of Association allow the directors to decide what trade(s) the business will engage in, and it then becomes a decision for that business as to whether it will have more than one brand. So, providing that the Articles of Association allow it, you can have multiple brands.

You might also looking whether you want different trading names. 

My advice would be to keep it simple. Only split the business if there is a clear advantage and need to do so.

LITRG

Hello. We are the Low Incomes Tax Reform Group (LITRG), part of the Chartered Institute of Taxation who are an educational charity. We are not part of HMRC or MSE. Although we can’t give individual advice, if you do decide to run your business as a sole trader then you might find our free website guidance on running more than one self-employment (multiple trades) helpful:  https://www.litrg.org.uk/working/self-employment/calculating-self-employed-profits . If you require further help, we recommend that you contact a tax adviser, HMRC or one of the tax charities where relevant. You can find more information about where to get help with tax here: https://www.litrg.org.uk/tax-nic/getting-help-tax. Thanks.

Bookworm105

tacpot12 said:

My advice would be to keep it simple. Only split the business if there is a clear advantage and need to do so.

be careful if you choose to claim the trading allowance instead of actual expenses given you have 2 totally unrelated sources of income and therefore unrelated expenses.  You need to declare each as a separate business on your tax return, although, as previous post, will be taxed on the total of the two under a single UTR

See section entitled: 

More than one source of trading income

Trading allowance | Low Incomes Tax Reform Group

DullGreyGuy

LightKnow said:

Hi everyone, I need some thoughts and or advise. Hope this right place 


So if I set up two side hustle or small business 

1. Selling cards 
2. Small therapy sessions 

am thinking having them both under one brand but separate identity ( potentially same logo ?) Amazon do this in sense right ? They have there wholesale side and game development side ?

If I do go this route, Am assuming it best to register these under like parent account either as business or sole trader 

Companies go both ways... amazon have a consistent design language across its range of services and all use the arrow smile thingy. On the other hand UK Insurance which operates under the brand names like Direct Line, Churchill, Privilege etc have totally different identities. For the later they used to have a fairly complex structure operationally because claims, IT, finance etc were all segmented by product (Motor, Home, Travel etc) but Marketing and sales were segmented by brand


Which is best depends on a wide range of considerations and history. Amazon evolved and wanted their new business ventures to be associated with the success of the prior ones whereas UK Ins grew through acquisitions and wanted to retain the goodwill they'd paid for when buying Churchill etc and also saw each brand appealing to different customer segments. 

A "business" is simply an entity engaging in commercial, industrial or professional services. A sole trader is one of the entity types, a limited company is a form of incorporated entity and another of the potential types that can be a business. 


How are you going to market your business? How/where are sales going to be conducted? Some small businesses really nail their branding early on but for many, particularly if your sales are going to be physical markets etc, branding is more a hygiene type factor than a motivator for the customers in the early days. 

LightKnow

Thanks for advice and information - I just want add bit more below for further advice or suggestions 

Here basically what am looking to achieve as e.g 

So Say business one I sell celebrations cards but some of the profit earned would go to building homes or providing water 

Business two ( that's if classed as one ) I always wanted to publish a book but I thought some earning could go towards helping 

As say another - site to help people wellbeing but again percentage of money goes to water supplying etc 


Business or self employment earning  Linkes to below 👇 

My objectives or goal is - e.g supply water or build homes etc 


I hope that makes sense - since my objective is technically my model - I thought I could just have a logo or slogan or something that captures this vision but that I can mark any ventures or job etc with that trademark?

Bookworm105

LightKnow said:

Thanks for advice and information - I just want add bit more below for further advice or suggestions 

Here basically what am looking to achieve as e.g 

So Say business one I sell celebrations cards but some of the profit earned would go to building homes or providing water 

Business two ( that's if classed as one ) I always wanted to publish a book but I thought some earning could go towards helping 

As say another - site to help people wellbeing but again percentage of money goes to water supplying etc 

Business or self employment earning  Linkes to below 👇 

My objectives or goal is - e.g supply water or build homes etc 

I hope that makes sense - since my objective is technically my model - I thought I could just have a logo or slogan or something that captures this vision but that I can mark any ventures or job etc with that trademark?

what do you mean by supply water or build homes???

do you really mean you want to donate profits from the businesses towards charitable causes supporting water and homes? 

LightKnow

Bookworm105 said:

LightKnow said:

Thanks for advice and information - I just want add bit more below for further advice or suggestions 

Here basically what am looking to achieve as e.g 

So Say business one I sell celebrations cards but some of the profit earned would go to building homes or providing water 

Business two ( that's if classed as one ) I always wanted to publish a book but I thought some earning could go towards helping 

As say another - site to help people wellbeing but again percentage of money goes to water supplying etc 

Business or self employment earning  Linkes to below 👇 

My objectives or goal is - e.g supply water or build homes etc 

I hope that makes sense - since my objective is technically my model - I thought I could just have a logo or slogan or something that captures this vision but that I can mark any ventures or job etc with that trademark?

what do you mean by supply water or build homes???

do you really mean you want to donate profits from the businesses towards charitable causes supporting water and homes? 

So I will keep earnings but a percentage will go towards x cause or and people can support too

I was giving e.g with supporting water and homes - but in theory I would be earning money for my self but also make a difference with it 

Bookworm105

LightKnow said:

Bookworm105 said:

LightKnow said:

Thanks for advice and information - I just want add bit more below for further advice or suggestions 

Here basically what am looking to achieve as e.g 

So Say business one I sell celebrations cards but some of the profit earned would go to building homes or providing water 

Business two ( that's if classed as one ) I always wanted to publish a book but I thought some earning could go towards helping 

As say another - site to help people wellbeing but again percentage of money goes to water supplying etc 

Business or self employment earning  Linkes to below 👇 

My objectives or goal is - e.g supply water or build homes etc 

I hope that makes sense - since my objective is technically my model - I thought I could just have a logo or slogan or something that captures this vision but that I can mark any ventures or job etc with that trademark?

what do you mean by supply water or build homes???

do you really mean you want to donate profits from the businesses towards charitable causes supporting water and homes? 

So I will keep earnings but a percentage will go towards x cause or and people can support too

I was giving e.g with supporting water and homes - but in theory I would be earning money for my self but also make a difference with it 

Those are facts you can look up yourself .....if you choose to give money to a registered charity it will not reduce your taxable income as you are not a limited company, you are a self employed sole trader

if you pay personal tax on your income at the higher rate (40%),you can claim a tax refund above the basic tax rate, so would get a 20% tax refund (on the amount of tax you paid, not on the size of the donation)

if you are a basic rate taxpayer then your donation does not have any effect at all on your personal income, but of course the charity can claim a tax refund if you make the donation as a gift aid donation.

Tax Relief on Charitable Donations - An Overview | Saffery