Q: I’m already registered as self-employed, but want to start another business. Do I need to register again?
Jun 24 2010
Answered by: Clive Lewis Ask a question
I assume that when you say you are ‘registered’ you are referring to VAT registered and not registered for income tax. For income tax a self- employed taxpayer has a UTR (unique tax reference) so if they start a different self-employed business they retain the same UTR (but file two self-employment returns). A new partnership has a new UTR as each partnership needs to file a partnership return.
If you are referring to VAT registration the answer to your question depends upon whether another self-employed business is being set up. The rules regarding VAT registration are on the legal entity. So if you have a self-employed business and set up another self-employed business, the VAT registration looks at the person not the number of businesses, so the second business is covered by the first business’ VAT registration.
If the existing business is a partnership and another partnership (with the same partners) is set up the existing registration holds good. If a limited company sets up another business within the same limited company, then it is also covered by the original VAT registration.
There are rigorous anti-avoidance regulations to prevent business using the above rules to keep below the VAT threshold (currently £70,000 in the last 12 months)
For more information visit the HMRC website.
Comments