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Where Taxpayers and Advisers Meet

New to being a Sole Trader

StellaMan
Posts: 2
Joined: Thu Mar 19, 2015 11:04 am

New to being a Sole Trader

Postby StellaMan » Thu Mar 19, 2015 11:17 am

I have come off of JSA and have now done 6 months on the NEA scheme, I have set up a small company called Stow PC which deals with the servicing and repair of PCs & Laptops. I do not make a lot of money doing this but I hope it's enough to see us by, we will see. Anyway, my question is ... my wife enjoys baking and I have encouraged her to sell her cakes & stuff locally, we've set her up on Facebook as Laura's luscious Cakes & Bakes and she has done a little bit of work, but again, not bringing in an awful lot. I have always worked in the past and she has always just been "my wife" as far as taxation was concerned, but is that the same situation now ? I am registered to pay NI contributions and to pay tax next year (assuming I make enough money to be taxed of course !!) but can my wife continue to just be "my wife" or should she also be paying NI and be registered herself ?

Hope this makes sense ... it's something I've been wondering about for a couple of months but has been brought forward in my "need to know list" as I have received a letter from the council requesting information about my circumstances, probably triggered by coming off on the NEA scheme, and one of the first questions is "Do you have more than one business ?" ... I have nothing to hide and I want to be straight with these people, so does my wife's cake making classify as a second business or is she just an off-shoot of Stow PC ?!?

Thanks in advance for any help here ...

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: New to being a Sole Trader

Postby section 44 » Thu Mar 19, 2015 11:43 am

You don't have any businesses.

You have a company.

Your company has a PC repair business.

Your wife has a cake selling business.

StellaMan
Posts: 2
Joined: Thu Mar 19, 2015 11:04 am

Re: New to being a Sole Trader

Postby StellaMan » Thu Mar 19, 2015 1:16 pm

Thanks for your reply section 44, but I'm just as confused by that as I am by everything else !!! So where doers that leave us with regards to tax & NI ?

In respect of the Council forms, do I have 0, 1 or 2 "businesses" ?

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Re: New to being a Sole Trader

Postby Ian McTernan CTA » Thu Mar 19, 2015 1:18 pm

I fear you will make a big mess of this and end up with cake on your face...you need to sit down with an tax advisor, run through your options, and get everything set up correctly after deciding what is right for you.
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: New to being a Sole Trader

Postby section 44 » Thu Mar 19, 2015 1:25 pm

In respect of the Council forms, do I have 0, 1 or 2 "businesses" ?
I'm not familiar with NEA but, as described by you:
You don't have any businesses.You have a company.Your company has a PC repair business.Your wife has a cake selling business.

superbtaxis
Posts: 30
Joined: Sat Feb 07, 2015 3:29 pm

Re: New to being a Sole Trader

Postby superbtaxis » Tue Mar 31, 2015 5:10 pm

Is Stow PC a Ltd company or just your business as a sole trader

and your wife is an autonomous entity and self employed in her own right


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