This is a very important and frequently asked question. The answer is that in the UK, you can have more than two businesses if you want. Setting up businesses as sole trader is probably the easiest business structure. It allows you to run your business and keep the profit from the taxes. At Tax Advisor UK, we are here to offer all the assistance you need. You can also hire a tax accountant in the UK to help you manage everything without hassles.

We understand that there are other questions in your mind. In this article, we will try to answer them. In any case, if you have other questions, feel free to contact us. You can speak to our tax accountant in the UK for more guidance.

Must I Register for Each Sole Trader Business Separately?

In the UK, if you have more than one business as a sole trader, you do not need to register for self-employment each time. If you do register separately each time, then the HMRC will issue a new UTR number for each business. The implication of this is that then you would have to pay separate tax returns for each business. If you submit one self-assessment tax return and have separate sections to deal with each business. Our tax accountant in the UK can guide you with this.

How does having Multiple Businesses Affect My National Insurance, VAT, and Tax?

Here is what you need to know about the implications this has. For more information, you would have to contact us. We can guide you and assist you better.

NI and tax for sole traders who own more than one business

Upon completing your self-assessment tax return, you would have to complete the self-employed income section for every business you own. To calculate the amount of NI and tax due it requires the total income earned.

You will get only one personal allowance, not one for each business. The tax-free Personal Allowance only applies to the combined amount earned from all businesses.

VAT for sole traders who own more than one business

As a sole trader, you may have more than one business, but legally they are all separate. This implies that you must make sure you register for VAT considering incomes from every business you own. When your turnover reaches the VAT registration threshold within the period of any 12 months, make sure you register for VAT. To determine the VAT registration threshold, you need to know the total income from all businesses. This also means that you must ensure all customers pay VAT. If you have no idea how to begin this, our tax accountant in the UK can assist.

Would I Be Entitled to Trading Allowance?

A trading allowance applies to miscellaneous trading income that is about £1,000. If your income is less than £1,000 per annum, you do not need to register for self-assessment, not pay tax on the income.

To hire a tax accountant in the UK and for further information, contact us.