Sole Trader or Business - TilersForums.com

[MGTiling]

Hello guys, after some views and opinions on the following.

I am already currently a sole trader with my current business. Everything runs through my personal accounts. When I set up with tiling in the coming weeks, I would presume that sole trading is the best option other than forming a company etc.

However how would that affect my current business? Can I run 2 sole trading business through the same accounts but keep everything seperate? Or should my current accountant just deal with the whole lot under 1 return??

Any help or comments would be welcome.

Many Thanks
Mark

 

[enduro]

I run mine together, i do landscaping and tiling.

 

[DHTiling]

if grumpygrouter doesnt reply to this then pm him..he's your guy when it comes to accounts....dave....

 

[GazTech]

I thought a sole trader was a fishmonger ,usually from Dover...lolb ( ignore this gent he is retarded..)

 

[grumpygrouter]

Hi MG, a lot depends on what information you want for analysis purposes and for tax purposes. For instance, are you VAT registered in your current Sole Trade business? If so you may want to consider another trading vehicle for your tiling so you don't have to add VAT to estimates. Also, if you are not VAT registered, will the tiling "arm" of your business push you over the VAT threshold?

If neither of these apply and you are doing your book keeping in such a way as to be able to distiguish income and costs easily for each part of your business (essential to know where your profit or loss!! is coming from) then by all means keep them together.

Also, not a good idea to have business records running through personal accounts. If the tax man wants a "chat" he normally only has access to "business records" initially i.e business bank account, if you run through you personal accounts it gives him carte blanche to check over every bank account you may have. Not good if you are trying to hide "cash" sales. Something I couldn't possibly condone of course.:wink_smile:

 

[Unregistered]

Ok thanks for the advice. I'm not VAT registered in my current role. I'm a pro dj, but am sick of the late nights, no social life and the M25! So thats why i'm looking to move into tiling, it's something I've always been really into.
If I did both jobs together, I would push the VAT threshold very close...but as I'm looking to slowly fade out the night work it shouldn't be an issue.

So I take it, a good idea would be to set up a business bank account?, then have all "official" incomes running through the business bank account, and then pay myself a wage from there?

Thanks for your time
Mark

 

[grumpygrouter]

Ok thanks for the advice. I'm not VAT registered in my current role. I'm a pro dj, but am sick of the late nights, no social life and the M25! So thats why i'm looking to move into tiling, it's something I've always been really into.
If I did both jobs together, I would push the VAT threshold very close...but as I'm looking to slowly fade out the night work it shouldn't be an issue.

So I take it, a good idea would be to set up a business bank account?, then have all "official" incomes running through the business bank account, and then pay myself a wage from there?

Thanks for your time
Mark

Correct, good luck if you take up the tiling. Abbey Business is free banking BTW.

Grumpy

 

[McP77]

Grumpy

Is everything free with Abbey, including cash. I paid some cash into my business account accidentally and it cost me 2% (when I say accidentally I normally pay it into personal account and transfer it to business to avoid fees, in no way am I avoiding tax)

 

[Holohana]

i thought the Abbey was totally free! Most banks offer free banking for the 1st 18 months/ Just move em around i guess.

 

[grumpygrouter]

Hi McP77 yes Abbey Business is free for life including cash up to certain transaction limits, something like £3000 per month and deposits of 100 cheques per month. Only minor drawback is that it is internet banking and you have to deposit through Abbey ATMs for cash and cheque or by post for cheques only. Have a look at the site Abbey's free day to day business banking forever it gives you the details there. it should certainly be sufficient for a tiling business I would have thought. You also earn good interest with them. I have both of my business accounts with them, and no I am not an agent!!
----

i thought the Abbey was totally free! Most banks offer free banking for the 1st 18 months/ Just move em around i guess.

Don't know if anyone has opened a new business account recently, real pain in the *** with the money laundering regs as they are now. Wouldn't want to be moving mine every 18 months or so unless I was really pi$$ed off the bank.

Worthwhile finding the bank that is right for you at the start and trying to stick with it.

Grumpy