Running 2 businesses, tax return?

[gman88667733]

At the end of January, I registered as a sole trader for my online reselling business. Since then, my options have changed significantly and I am now on the verge of leaving my current employee job and going self employed as a gardener. Do I need to register again as a sole trader for this separate venture? I assume I couldn't just combine the earnings/expenses of both?

Many thanks

[plasticpig]

Yes. If you have 2 different trades you need to fill in 2 self employment sections for your tax return.

[Mammasaid]

This ^^^, you can have as many different businesses under one tax return as you want.

I've got 2 self employments and a PAYE section, no problem whatsoever.

[Eric Mc]

You don't have to register the additional self employed activity. As you are already set up to submit self assessment tax returns, all you need to do is, when completing the next return, complete two separate sets of Self Employed pages - one set for each self employed activity.

Beware from April 2024, you will be required to submit 4 three monthly on line "submissions" (HMRC refuses to call them returns) for EACH of your self employed activity.

So, you will be submitting EIGHT separate submissions in the year.

In fact, make that TEN because each activity requires an annual "reconciliation statement" as well.

[Blown2CV]

this is why accountants exist.

[Eric Mc]

Blown2CV said:

this is why accountants exist.

Not this one. I'm getting out of the game by 2024 if I can manage it as the pressure of having to make 500 plus submissions to HMRC instead of 100 each year is just too much for a small practice like mine.

[Blown2CV]

Eric Mc said:

Blown2CV said:

this is why accountants exist.

Not this one. I'm getting out of the game by 2024 if I can manage it as the pressure of having to make 500 plus submissions to HMRC instead of 100 each year is just too much for a small practice like mine.

is it not an option to raise your prices and hire more people?

[Eric Mc]

Blown2CV said:

is it not an option to raise your prices and hire more people?

Not at this stage in my career. I've always operated as a sole practitioner without staff and it has been a perfectly viable business model for me. I've really enjoyed it. However, the workload being foisted on small businesses and landlords by government and the manner in which they are insisting it be implemented means that my type of practice cannot really function.

For most small sole traders and landlords they will either have to have a go at doing their own submissions (which I am 100% convinced they will not be able to submit correctly or accurately) or alternatively, make use of larger firms of accountants who will have the staff (no doubt junior) available
to do the work for the clients. Whichever way you look at it, it will involve higher costs for small businesses and landlords.