Two separate sole-trader businesses

Question asked by Kevin Westbrook 5 months ago

I wonder if anyone here knows the answer to this. I have already contacted Clear Books support and they have referred me to HMRC, but I don't rate my chances of getting an answer this side of Christmas from them!

Up to now, I have had separate pages in my income tax return for two sole-trader businesses. However, I submit the income and expenditure separately in the return, which is then consolidated with my employed income to get to an end of year total taxable income. I have been informed that the employment income can still be added separately under MTD at the end of the year, but I can find no information about the two businesses situation. From a Clear Books perspective, I will need two instances to separate the businesses. Will HMRC accept different submissions under the same NI number and happily deal with it? I get the impression that there is much still unknown about the final operation. I don't actually have to do MTD this year, but want to get myself ready for it.

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10 Replies

Hi Kevin,

Yes, HMRC will accept different submissions under the same NI number.

Tommy

Best answer
5 months ago

Awesome! And impressively quick! Thank you.

5 months ago

Hi Kevin,

No problem at all - you're very welcome!

Tommy

5 months ago

Hello, I have a similar issue - with Clear books do I need to set up 2 seperate accounts for each of my self emplyed businesses or will I be able to do this under one user account. Also is this possible in the free version of clear books?

1 month ago

I have been able to set up two businesses in my one Clearbooks account. I haven't tried using it for MTD yet, but I believe it will work. I am using the free version.

1 month ago

Hi Jane,

If you have separate businesses per HMRC, you will require separate Clear Books accounts. In this case, you can open 2 separate Sole Trader free accounts, or, if you require additional features, you can open separate paid plan accounts, please see: https://www.clearbooks.co.uk/pricing/

Tommy

1 month ago

Hi Tommy, I mistakenly set up 2 businesses under the same free sole trader account and started adding in data. I now realise I need to set up 2 separate sole trader accounts with a business under each of them. My question is - is there a way of transferring the data already input into the new free sole trader account or do I just delete it all and re- enter it?

5 weeks ago

Hi Jane,

Unfortunately, there is not a way to transfer the data. In this case, you can reset the account via the Building Icon (top right) > Reset account > Reinput the data.

Tommy

5 weeks ago

Hi Tommy I have done that however the business still appears under my sole trader account - ie so I have business 1 with data and business 2 (reset) with no data under that account - can I just leave it there and open another sole trader account for business 2?

5 weeks ago

Hi Jane,

For business 2, as you have reset this, you should be able to input data into this account. When you hover over your business name at the top right, you can navigate between the different businesses; they are treated as separate businesses.

Tommy

5 weeks ago

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