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Where Taxpayers and Advisers Meet

sole trader- two self employemnts flat rate scheme

puds2015
Posts:33
Joined:Thu Jan 15, 2015 3:19 pm
sole trader- two self employemnts flat rate scheme

Postby puds2015 » Thu Jul 27, 2017 2:11 pm

Hi. I hope someone can help- I ave an appointment with a technical advisor from HMRC next week but looking for any advice in the meantime.

Currently VAT registered as a sole proprietor- hairdressing business. On the flat rate scheme- 13%.

Considering starting a second separate self employment- online dating agency. Again as a sole proprietor-not sure if it will make much profit. Keeping both businesses separate- separate bank account, separate accounting etc.

I know that as already VAT registered then all income form new self employment business will be VATable. My question though is that can I remain in the flat rate scheme and if so how would it work. Would I use the flat rate percentage for the bigger turnover on the combined income, two different %'s and combine totals or another option?
I'm hoping I wouldn't have to deregister and use standard VAT as if the dating agency doesn't produce any income then I would be losing out on the hairdressing side of things as the flat rate is preferable to standard VAT on that!
I hope that makes sense. I've searched for answers but just can not find anything that relates to two sole proprietor businesses.
Many thanks

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: sole trader- two self employemnts flat rate scheme

Postby les35 » Thu Jul 27, 2017 2:25 pm

One person; two businesses; one FRS percentage - see Notice 733, para 4.8.
He should choose the category applicable to the business with the higher turnover.

puds2015
Posts:33
Joined:Thu Jan 15, 2015 3:19 pm

Re: sole trader- two self employemnts flat rate scheme

Postby puds2015 » Thu Jul 27, 2017 2:30 pm

lovely- this was my instinct based on what i could find- but the advisor i spoke to today at hmrc was under the impression if there was two businesses they could not be in the flat rate scheme. I hoped he was getting confused by groups not being allowed in the flat rate scheme and that as neither business was a limited company this would not be applicable. I'll speak to the technical advisor on tuesday but im hoping they will say what you have just said x


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