Sole trader needs some info?

[cheryl l]

I work from home selling stuff on the internet, I have a facebook page and i dont earn more than £40pw. I work for myself so there isnt anyone else. I dont want anyone to take my name tho but i do want to get a sponser to help sell more items but dont know what to do next. All i am currently doing is selling on ebay,have a facebook page and advertising on gumtree and also a few carboots. Do i need to tell HMRC. How do i go about it as only want to be a sole trader never going to employ anyone. I only buy and sell to earn a bit of extra cash but dont want to loose my name or stop selling in a few months PLEASE HELP

[Jon]

You need to tell HMRC as soon as possible, just give them a ring and explain your situation, they will in turn send out the relevant paperwork you need to register as a sole trader, when i set up my business they were very helpful on the phone and walked me through everything i was unsure about, just give them a ring.

Also make sure your keeping accurate records of all sales/ purchases as you need to provide them with financial accounts and complete and annual return at the end of each tax year.

[Ben]

You MUST inform HMRC and fill in a tax return each year. If you only earn £40/week you won't pay tax from your income. As for the name you could pay to hold it in your name with companies house but its expensive for a very small business like yours.

Try http://www.hmrc.gov.uk/selfemployed/ for more info.

Or try http://www.businesslink.gov.uk/bdotg/act...1073858805

[Chocolate Guy]

It doesn't matter how much or little you earn, it's a fact of life you need to pay tax. There are many who would say take the chance, but if you do and get caught the fines are huge, not to mention it will completely destroy your young business.
With modern technology it's only a matter of time before HMRC discovers you selling anyway.
It also depends on what you are selling as to whether you need to register with other departments, food hygiene etc.
If you want to keep your business name, then at some point it will need to be registered, in order to stop others using it, you can be flagged to HMRC this way too, so best to get your tax affairs sorted first, rather than get a huge back dated bill plus fine, and interest.

[Hsquared]

Ring HMRC and register as self employed. You will need to do a tax return each year which is really easy, if you have no other income at all then you probably won't have to pay any tax but you must still register.