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Ken
Guest
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 Posted: Wed May 28, 2008 2:52 pm Post subject: Can I maintain self employed status in this circumstance? |
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I am disposing of a business, in one months time, but from which I will have
a self employed income for the y/e March 2009 tax period. Can I when the
business has been disposed of, maintain a self employed status until the end
of the tax period to March 2009 and even further ahead?
My only income from that self employment would be intermittent payments to
for occasional consultancy work but for which I will need to incur costs
such as motoring, telephone, odd overnight stays. So on the face of it the
costs could be as much as the income being received or even higher.
Would I need to tell Inland Revenue?
Help would be useful.
Ken |
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Troy Steadman
Guest
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| Posted: Wed May 28, 2008 2:52 pm Post subject: Re: Can I maintain self employed status in this circumstance |
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On 28 May, 10:52, "Ken" <Reply to NG only> wrote:
| Quote: |
I am disposing of a business, in one months time, but from which I will have
a self employed income for the y/e March 2009 tax period. Can I when the
business has been disposed of, maintain a self employed status until the end
of the tax period to March 2009 and even further ahead?
My only income from that self employment would be intermittent payments to
for occasional consultancy work but for which I will need to incur costs
such as motoring, telephone, odd overnight stays. So on the face of it the
costs could be as much as the income being received or even higher.
Would I need to tell Inland Revenue?
Help would be useful.
Ken
|
If you have income from self employment then you are self employed.
Having sold the business, the costs you set against your profits must
be be reproportioned to reflect the new circumstances - disallowable
Motor Expenses probably goes up very sharply.
If Consultancy was your business previously, or connected to it, then
it continues.
If it is a new venture than it is a new trade and you must notify
HMRC. You can be employed and self-employed in a number of jobs and
trades at the same time.
Also it is not completely unknown for (say) specialist Engineers to
tour the world trying to drum up business in their speciality, setting
their air fares against earlier profits in the hope of future profits,
and having no income at all for year after year. |
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Troy Steadman
Guest
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| Posted: Wed May 28, 2008 2:52 pm Post subject: Re: Can I maintain self employed status in this circumstance |
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On 28 May, 12:31, "Ken" <Reply to NG only> wrote:
| Quote: |
"Troy Steadman" <troystead...@yahoo.co.uk> wrote in message
news:41264ec3-deb4-4dfb-9225-8df5f7715afe@k37g2000hsf.googlegroups.com...
On 28 May, 10:52, "Ken" <Reply to NG only> wrote:
I am disposing of a business, in one months time, but from which I will
have
a self employed income for the y/e March 2009 tax period. Can I when the
business has been disposed of, maintain a self employed status until the
end
of the tax period to March 2009 and even further ahead?
My only income from that self employment would be intermittent payments to
for occasional consultancy work but for which I will need to incur costs
such as motoring, telephone, odd overnight stays. So on the face of it the
costs could be as much as the income being received or even higher.
Would I need to tell Inland Revenue?
Help would be useful.
Ken
If you have income from self employment then you are self employed.
Having sold the business, the costs you set against your profits must
be be reproportioned to reflect the new circumstances - disallowable
Motor Expenses probably goes up very sharply.
If Consultancy was your business previously, or connected to it, then
it continues.
If it is a new venture than it is a new trade and you must notify
HMRC. You can be employed and self-employed in a number of jobs and
trades at the same time.
Also it is not completely unknown for (say) specialist Engineers to
tour the world trying to drum up business in their speciality, setting
their air fares against earlier profits in the hope of future profits,
and having no income at all for year after year.
Just pondering the motoring expenses which have been 90% allowable but
clearly which will change. I wonder whether I should start keeping detailed
journey records or do you have other suggestions?
Ken
|
Sounds good to me. Use HMRC's very generous 40p a mile (I can't
provide you with a link because the HMRC website is nowadays
impenetrable) and you can even recover the VAT on the petrol if you
are VAT registered and can be arsed with doing it.
You also have documented "proof" if the tax man comes after you - a
change of circumstance can sometime trigger an inquiry. |
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Ken
Guest
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| Posted: Wed May 28, 2008 3:49 pm Post subject: Re: Can I maintain self employed status in this circumstance |
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"Troy Steadman" <troysteadman@yahoo.co.uk> wrote in message
news:41264ec3-deb4-4dfb-9225-8df5f7715afe@k37g2000hsf.googlegroups.com...
On 28 May, 10:52, "Ken" <Reply to NG only> wrote:
| Quote: |
I am disposing of a business, in one months time, but from which I will
have
a self employed income for the y/e March 2009 tax period. Can I when the
business has been disposed of, maintain a self employed status until the
end
of the tax period to March 2009 and even further ahead?
My only income from that self employment would be intermittent payments to
for occasional consultancy work but for which I will need to incur costs
such as motoring, telephone, odd overnight stays. So on the face of it the
costs could be as much as the income being received or even higher.
Would I need to tell Inland Revenue?
Help would be useful.
Ken
|
If you have income from self employment then you are self employed.
Having sold the business, the costs you set against your profits must
be be reproportioned to reflect the new circumstances - disallowable
Motor Expenses probably goes up very sharply.
If Consultancy was your business previously, or connected to it, then
it continues.
If it is a new venture than it is a new trade and you must notify
HMRC. You can be employed and self-employed in a number of jobs and
trades at the same time.
Also it is not completely unknown for (say) specialist Engineers to
tour the world trying to drum up business in their speciality, setting
their air fares against earlier profits in the hope of future profits,
and having no income at all for year after year.
Thank you for the help and I will carry on in a consultancy capacity, for
the new owner, so will be broadly in same type of business. I guess I am not
ready to let go just yet even though I am nearing retirement.
Ken |
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Ken
Guest
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| Posted: Wed May 28, 2008 4:31 pm Post subject: Re: Can I maintain self employed status in this circumstance |
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"Troy Steadman" <troysteadman@yahoo.co.uk> wrote in message
news:41264ec3-deb4-4dfb-9225-8df5f7715afe@k37g2000hsf.googlegroups.com...
On 28 May, 10:52, "Ken" <Reply to NG only> wrote:
| Quote: |
I am disposing of a business, in one months time, but from which I will
have
a self employed income for the y/e March 2009 tax period. Can I when the
business has been disposed of, maintain a self employed status until the
end
of the tax period to March 2009 and even further ahead?
My only income from that self employment would be intermittent payments to
for occasional consultancy work but for which I will need to incur costs
such as motoring, telephone, odd overnight stays. So on the face of it the
costs could be as much as the income being received or even higher.
Would I need to tell Inland Revenue?
Help would be useful.
Ken
|
If you have income from self employment then you are self employed.
Having sold the business, the costs you set against your profits must
be be reproportioned to reflect the new circumstances - disallowable
Motor Expenses probably goes up very sharply.
If Consultancy was your business previously, or connected to it, then
it continues.
If it is a new venture than it is a new trade and you must notify
HMRC. You can be employed and self-employed in a number of jobs and
trades at the same time.
Also it is not completely unknown for (say) specialist Engineers to
tour the world trying to drum up business in their speciality, setting
their air fares against earlier profits in the hope of future profits,
and having no income at all for year after year.
Just pondering the motoring expenses which have been 90% allowable but
clearly which will change. I wonder whether I should start keeping detailed
journey records or do you have other suggestions?
Ken |
|
| Back to top |
|
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Ken
Guest
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| Posted: Wed May 28, 2008 5:43 pm Post subject: Re: Can I maintain self employed status in this circumstance |
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"Troy Steadman" <troysteadman@yahoo.co.uk> wrote in message
news:8376267b-56a4-4fe3-bda8-d168f9cc4034@d77g2000hsb.googlegroups.com...
| Quote: |
On 28 May, 12:31, "Ken" <Reply to NG only> wrote:
"Troy Steadman" <troystead...@yahoo.co.uk> wrote in message
news:41264ec3-deb4-4dfb-9225-8df5f7715afe@k37g2000hsf.googlegroups.com...
On 28 May, 10:52, "Ken" <Reply to NG only> wrote:
I am disposing of a business, in one months time, but from which I will
have
a self employed income for the y/e March 2009 tax period. Can I when
the
business has been disposed of, maintain a self employed status until
the
end
of the tax period to March 2009 and even further ahead?
My only income from that self employment would be intermittent payments
to
for occasional consultancy work but for which I will need to incur
costs
such as motoring, telephone, odd overnight stays. So on the face of it
the
costs could be as much as the income being received or even higher.
Would I need to tell Inland Revenue?
Help would be useful.
Ken
If you have income from self employment then you are self employed.
Having sold the business, the costs you set against your profits must
be be reproportioned to reflect the new circumstances - disallowable
Motor Expenses probably goes up very sharply.
If Consultancy was your business previously, or connected to it, then
it continues.
If it is a new venture than it is a new trade and you must notify
HMRC. You can be employed and self-employed in a number of jobs and
trades at the same time.
Also it is not completely unknown for (say) specialist Engineers to
tour the world trying to drum up business in their speciality, setting
their air fares against earlier profits in the hope of future profits,
and having no income at all for year after year.
Just pondering the motoring expenses which have been 90% allowable but
clearly which will change. I wonder whether I should start keeping
detailed
journey records or do you have other suggestions?
Ken
Sounds good to me. Use HMRC's very generous 40p a mile (I can't
provide you with a link because the HMRC website is nowadays
impenetrable) and you can even recover the VAT on the petrol if you
are VAT registered and can be arsed with doing it.
You also have documented "proof" if the tax man comes after you - a
change of circumstance can sometime trigger an inquiry.
|
Thanks yet again.
I always have kept my nose clean but believe in avoiding as much tax as I
can providing it is legitimate!
Ken |
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Troy Steadman
Guest
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| Posted: Wed May 28, 2008 5:51 pm Post subject: Re: Can I maintain self employed status in this circumstance |
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On 28 May, 17:52, "Ken" <Reply to NG only> wrote:
| Quote: |
"Martin" <n...@barrier.ngngng.fsnet.co.uk> wrote in message
news:4xd%j.10643$DZ6.616@text.news.virginmedia.com...
"Troy Steadman" <troystead...@yahoo.co.uk> wrote in message
news:8376267b-56a4-4fe3-bda8-d168f9cc4034@d77g2000hsb.googlegroups.com...
snip
Sounds good to me. Use HMRC's very generous 40p a mile (I can't
provide you with a link because the HMRC website is nowadays
impenetrable)
http://www.hmrc.gov.uk/manuals/bimmanual/bim47701.htmand the following
page...
HTH
--
Martin
Thanks Martin
Ken
|
You say you are in a "partnership" with your wife. You probably
aren't, you just pay her some salary? If a partner leaves a
partnership there is a cessation.
Cessation could be a good thing for you or a bad thing for you. You
need to get the VAT registration sorted - you can't just deregister
because you feel like it. See a good, locally recommended Chartered
Accountant. |
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Martin
Guest
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| Posted: Wed May 28, 2008 6:57 pm Post subject: Re: Can I maintain self employed status in this circumstance |
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"Troy Steadman" <troysteadman@yahoo.co.uk> wrote in message
news:8376267b-56a4-4fe3-bda8-d168f9cc4034@d77g2000hsb.googlegroups.com...
< snip >
| Quote: |
Sounds good to me. Use HMRC's very generous 40p a mile (I can't
provide you with a link because the HMRC website is nowadays
impenetrable)
|
http://www.hmrc.gov.uk/manuals/bimmanual/bim47701.htm and the following
page...
HTH
--
Martin |
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| Back to top |
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Ken
Guest
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| Posted: Wed May 28, 2008 9:52 pm Post subject: Re: Can I maintain self employed status in this circumstance |
|
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"Martin" <ng@barrier.ngngng.fsnet.co.uk> wrote in message
news:4xd%j.10643$DZ6.616@text.news.virginmedia.com...
| Quote: |
"Troy Steadman" <troysteadman@yahoo.co.uk> wrote in message
news:8376267b-56a4-4fe3-bda8-d168f9cc4034@d77g2000hsb.googlegroups.com...
snip
Sounds good to me. Use HMRC's very generous 40p a mile (I can't
provide you with a link because the HMRC website is nowadays
impenetrable)
http://www.hmrc.gov.uk/manuals/bimmanual/bim47701.htm and the following
page...
HTH
--
Martin
|
Thanks Martin
Ken |
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| Back to top |
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Ken
Guest
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| Posted: Wed May 28, 2008 11:07 pm Post subject: Re: Can I maintain self employed status in this circumstance |
|
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"Troy Steadman" <troysteadman@yahoo.co.uk> wrote in message
news:2ca5ebe8-31c3-4a62-908c-12f8f1d791ff@c65g2000hsa.googlegroups.com...
| Quote: |
On 28 May, 17:52, "Ken" <Reply to NG only> wrote:
"Martin" <n...@barrier.ngngng.fsnet.co.uk> wrote in message
news:4xd%j.10643$DZ6.616@text.news.virginmedia.com...
"Troy Steadman" <troystead...@yahoo.co.uk> wrote in message
news:8376267b-56a4-4fe3-bda8-d168f9cc4034@d77g2000hsb.googlegroups.com...
snip
Sounds good to me. Use HMRC's very generous 40p a mile (I can't
provide you with a link because the HMRC website is nowadays
impenetrable)
http://www.hmrc.gov.uk/manuals/bimmanual/bim47701.htmand the following
page...
HTH
--
Martin
Thanks Martin
Ken
You say you are in a "partnership" with your wife. You probably
aren't, you just pay her some salary? If a partner leaves a
partnership there is a cessation.
Cessation could be a good thing for you or a bad thing for you. You
need to get the VAT registration sorted - you can't just deregister
because you feel like it. See a good, locally recommended Chartered
Accountant.
|
No I really am in partnership with wife. We both work full time and she has
20 years of experience in the business so absolutely essential to the
running of the company.
Ken |
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