My husband is a director of a pub, (someone else does those accounts) and he has taken on another pub (not ltd just the lady was struggling so he has taken it over and paying her rent and we wish to keep these accounts ourselves)
I need to sign this pub to him with HMRC so do I register him as an individual or an organisation, pretty silly question I think as it would be an organisation as he is employing staff and would already be set up as an individual for his personal tax return but I thought I would check this out as I am questioning myself :/
As hubby is a director and has taken over another pub, do you mean his company has taken it over, or he has taken it over as a personal asset (i.e., it will have nothing to do with his company)? The formal agreement hubby entered into will identify who the new owner/proprietor will be, and that should help resolve your question.
Whether he has staff doesn't matter. A sole trader can employ people.
If the legal agreement transferring the pub shows that the transfer is in your husbands name, rather than the company name, then yes its his self employed business.
As a director, he may already be doing a self assessment return? If so, you just complete the self employment pages on the next return, showing the new business started trading within that year. Is this what you are asking?
Yes this is where I am getting myself confused, I know self employed can hire staff the thing is the pub who is owned and was ran by the lady wasn't all done properly i.e there was no payroll etc and it was a run down place, she said to him take it off my hands and you have it and just pay me rent. However this means we need to register the pub as being an employer but we have no hmrc login details to do this and if we had hers it would come through in her name surely.
This is going to need to be VAT registered at some point too so I am unsure how to register for these taxes without having to register the entire business if it is just going to be added on to his usual tax return.
Yes we have a HMRC login for self assessment however he has now informed me that although the pub bank account Is In his name he would like it to be a partnership as he has had a business partner that has helped with the take over of this and financially helped.
guess this makes the question void of that it needs to be registered as an organisation to account for the partnership?
and I have to enrol them for a Partnership Self Assessment also don't I even though they both have their own individual SA because they will now need to fill 2 SA's out each a partnership and their individual ones, am I thinking along the right lines?
Yes, you will need to create the online account for the partnership, and then once that's been activated, you can enrol for PAYE through it.
At the year end you will do 3 returns - 1 partnership and each partners SA return. Note that you will need software to submit the partnership return. It cant be done through HMRC like the SA return. Andica do a good one.
Can I ask one more thing, I was planning on setting them up on sage - you have to enter when the financial year begins and because the returns have to be made up to 5th April, is it ok to start the year in the accounts April even though they took over in May?