I'm not around much this week as I'm sunning myself in the tropics of Watford!!
Just a quick question, I'm registering someone for self employment but they are already a Director, and I do self assessment once a year. I'm using form cwf1 to register and one of the tick boxes asks if you are a Director. The help box says if you're a Director you can't be self employed, but that can't be right surely?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
someone can have multiple simultaneous directorships AND be self employed.
Is there any link between the self employment and the directorship as that would cause issue but if they are totally seperate then there should be no issue (you simply fill out the employment and self employment parts of the self assessment).
I thinkthat it's just bad design on the case of the form saying that if you are a director then you are an employee, not self employed by that company. This request though is not for that company.
kindest regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
That's what I thought Shaun, but it scared me a bit when I saw the help file.
Another thought has just struck me, the Ltd Co is vat registered, will that affect the sole trader side? The two businesses are not associated in any way, one is a building company, the other is a website/market stall selling fabrics and hand sewed stuff.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
If they are not related and provided that your client keeps them completely seperate (you REALLY need to emphasise that to them) then there is no reason that your client cannot run both a VAT registered and non VAT registered business.
A few things to watch out for.
The non VAT registered business using the computer bought and paid for by the VAT registered business.
Use of the same telephone line where VAT is being reclaimed by the VAT registered business.
Think of other things along those lines and just emphasise that there must be absolutely no element of artificial seperation or the VAT registered business subsidising the other by taking on its expenses.
Good luck with it John,
all the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hi John
Hope you had fun in Watford - I have relatives down there!
I get the impression that HMRC were maybe trying to 'educate' (in their usual cack handed way) the ones who think being a Director of their own company makes them self employed!!!!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
