Originally posted by interestedparty
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Originally posted by Old Greg View PostIs that right? I always thought that there is no separate identity between a sole trader and the individual. But happy to be corrected as I'v only worked via a Ltd. Interested as Mrs OG is s a sole trader.
Set up as a sole trader - GOV.UKLast edited by Paralytic; 16 September 2020, 07:21.Comment
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Originally posted by Paralytic View PostIm my experience, there's no difference from a tax perspective ie. all profits are treated as profits for the individual and are recorded via the individual's self assessment.
Set up as a sole trader - GOV.UK
The only workaround would be to sell via a limited company...merely at clientco for the entertainmentComment
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Originally posted by eek View PostThat's what I thought as well - the cheaply purchased collection becomes stock at the original purchase price.
The only workaround would be to sell via a limited company...
But, if I ignore the fact that I have a business for a minute; I, like most people, will choose from time to time to sell some of my private possessions. We can't be expected to treat these sales in the same way as we treat business sales? On a practical level we can't be expected to keep records for every book, record, ornament we ever buy, so it's only to be expected that if we sell them at future date that the sale price will be greater or lesser than what we paid for it? As far as I'm concerned they weren't purchased with the intention of resale, or in any way connected to a business, so any profit or loss is irrelevant as far as tax is concerned?
I appreciate that when it's a capital asset (house, shares, etc) we should declare the transaction and pay any taxes that are due.Comment
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Originally posted by interestedparty View PostI agree with the principle of limited company = separate legal identity, etc, and fully understand how these work and the reporting requirements around them - I was using non-legal terminology.
But, if I ignore the fact that I have a business for a minute; I, like most people, will choose from time to time to sell some of my private possessions. We can't be expected to treat these sales in the same way as we treat business sales? On a practical level we can't be expected to keep records for every book, record, ornament we ever buy, so it's only to be expected that if we sell them at future date that the sale price will be greater or lesser than what we paid for it? As far as I'm concerned they weren't purchased with the intention of resale, or in any way connected to a business, so any profit or loss is irrelevant as far as tax is concerned?
I appreciate that when it's a capital asset (house, shares, etc) we should declare the transaction and pay any taxes that are due.
You need to set up as a sole trader if any of the following apply:
* you earned more than £1,000 from self-employment between 6 April 2019 and 5 April 2020
(from Set up as a sole trader - GOV.UK)
Also see "selling goods or services" on this page: Working for yourself - GOV.UK
So, if you have a few albums you want to sell privately, then I doubt anyone will know or care. But, if you have a collection of hundred of albums, and, outside of your self-employed business, sell these and make more than £1K in a tax year, and if HMRC came looking, I suspect they'd want to conflate the two.
Would these "private" sales be to the same market as your self-employed trading?Last edited by Paralytic; 17 September 2020, 15:39.Comment
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Originally posted by interestedparty View PostI agree with the principle of limited company = separate legal identity, etc, and fully understand how these work and the reporting requirements around them - I was using non-legal terminology.
But, if I ignore the fact that I have a business for a minute; I, like most people, will choose from time to time to sell some of my private possessions. We can't be expected to treat these sales in the same way as we treat business sales? On a practical level we can't be expected to keep records for every book, record, ornament we ever buy, so it's only to be expected that if we sell them at future date that the sale price will be greater or lesser than what we paid for it? As far as I'm concerned they weren't purchased with the intention of resale, or in any way connected to a business, so any profit or loss is irrelevant as far as tax is concerned?
I appreciate that when it's a capital asset (house, shares, etc) we should declare the transaction and pay any taxes that are due.Comment
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