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Where Taxpayers and Advisers Meet

Sole trader - other work

DannyNight
Posts:5
Joined:Wed May 05, 2021 10:04 am
Sole trader - other work

Postby DannyNight » Wed May 05, 2021 10:09 am

I'm a sole trader for one business but I also do regularly self-employed work elsewhere. Due to the nature of the other work, I can't class this as a business. So am I allowed to lump the income made into one business on my self-assessment?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Sole trader - other work

Postby pawncob » Wed May 05, 2021 11:57 am

If it's not a business, you don't need to report it to HMRC. Are you claiming it's a hobby?
If it is a business then it should be reported separately as it will be difficult to separate the two businesses at a later date.
With a pinch of salt take what I say, but don't exceed your RDA

DannyNight
Posts:5
Joined:Wed May 05, 2021 10:04 am

Re: Sole trader - other work

Postby DannyNight » Wed May 05, 2021 1:28 pm

I've decided to amend the last few tax years online to separate the businesses. I can't go any further back as I would have to write to HMRC. Is it necessary to write to them considering the profits would be the same anyway?

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Sole trader - other work

Postby Jholm » Wed May 05, 2021 3:59 pm

Can you give us a bit more information as to why it wouldn't be classed as a business? Would be 10x easier to comment.

The fact you refer to it as work suggests to me that it constitutes earnings and therefore, taxable.

DannyNight
Posts:5
Joined:Wed May 05, 2021 10:04 am

Re: Sole trader - other work

Postby DannyNight » Wed May 05, 2021 4:29 pm

I have a job as a search engine evaluator. I work for them on a self-employed basis but I can't market/advertise at all or scale up the business very much so I've been hesitant to deem it a business of mine. However, to make things easier in the future, I've decided to go back and amend my tax returns to separate the two sole trader businesses. I could only do the last two years online. Is it really necessary to write to the HMRC to amend the other two years considering all the income has already been added up and paid for?

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: Sole trader - other work

Postby Jholm » Thu May 06, 2021 8:58 am

I personally wouldn't bother going back if all the income is reported, albeit differently than you plan to moving forward.

I would suggest that HMRC would deem that a business, even if you don't.

Reporting something as a business for tax purposes doesn't mean you need a full office, receptionist, website or other such.


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