Steve Newbold started this topic @ 17:01 on 18/11/2003
Hello,
I have a small creative business that seems to be running well and to the best of my knowledge is set up correctly (ie registered with the Inland Revenue). Without going into technical detail, I now wish to branch my business into two seperate entities.
The reasons for doing this is so that i can maintain the biggest part of my business (freelance photography) whilst focusing on a potentially profitable and connected area (digital retouching) without compromising client interest. Basically if the retouching doesn't work, I don't want it to effect my photographic work.
So, here's my question. I wish to seperate the two parts of the business but not create an entirely new business for one. I wish to trade as two different names, one for each sector, whilst all the invoicing/tax returns are performed through one single sole-trading business. Can this be done?
My business advisor at HSBC suggested that I could trade under any name I wanted if it was registered with them for business use. How would this effect my tax return? What would I put as my business name?
I apologise if this sounds confusing, but I'm a little confused myself. If anybody could help or would like any further information, I would be grateful.
Steve Newbold,
Steve Newbold Photography
RE: Multiple Trading Names
nickc | 20/11/2003 02:12 PM
You can only use a single name to trade under. I have several websites but provided I invoice using my own name rather than my trade name then there isn't a problem. I'm not sure how this works on several ecommerce sites. It would probably be best to speak to an accountant just to be sure.
Nick
Disappointed by the performance of your website? Apply for your FREE Website Health Check and find out why. http://members.aol.com/all4yourpc/health.htm
------------------------
http://www.sendallmylove.co.uk">href="http://www.sendallmylove.co.uk">http://www.sendallmylove.co.uk UK Christmas Gifts
RE: Multiple Trading Names
gail | 20/11/2003 02:30 PM
Hi
Get in touch with your Local Business Link and seek advice from a qualified business adviser. this service should be offered to you for FREE.
Find out your local one visit http://www.businesslink.gov.uk/bdotg/action/directory?r.s=h
Thanks
Gail
RE: Multiple Trading Names
Steve Newbold | 20/11/2003 03:56 PM
Thanks for the advice, I'll check these things out.
Cheers,
Steve
Steve Newbold Photography
RE: Multiple Trading Names
James Smith | 21/11/2003 10:08 AM
I think Nick is mistaken, there is no issue in having multiple trading names as a limited company or as a sole trader, so long as you make it clear who you are dealing with on your contracts, invoices and promotional material.
From a tax return point of view, just put the main name down, there is no real issue here.
ie as a sole trader you would need to say something like "'Gamour Pics' is a trading name of 'Steve Newbold Photography'" at the bottom of all your stationary. (Note - I am not a lawyer!)
From a bank point if view they can have more than one name on your cheques if you register it (normally 2 or 3 I think) which is probably what they are getting at.
I personally have 2 trading names I use for my services as a limited company.
Regards,
James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: Multiple Trading Names
emplaw | 21/11/2003 01:38 PM
Yes, as usual James is spot on, no legal issues at all UNLESS your clients do not know who or what company they are dealing with, so you have to be very clear on all your business items as to the nature name, address and status ( ie sole trader or ltd or partnership) that is operating the business. I think its probably the expense of all the different branding items that causes people to adopt the one man (or one woman) one business approach.
------------------------
LawHound Limited www.lawhound.co.uk
01244 300413
RE: Multiple Trading Names
Steve Newbold | 21/11/2003 03:52 PM
Ok, It's starting to make sense now.
So I have my main business, 'Steve Newbold Photography' which is registered with the Inland Revenue. I can then offer certain services under the name of 'Fiction Imaging', incorporating a logo on invoices, quotes and letters etc. as long as I mention the main business somewhere within.
On my existing stationary I have 'S. Newbold t/a Steve Newbold Photography' which I believe is equired by law. Now, does it make more sense to use 'S. Newbold t/a Fiction Imaging' or 'Fiction Imaging is a trading name of Steve Newbold Photography'?
If the latter, do I then have to go on and mention my name as well, or would this be adequate?
Again, thanks for all your help.
Steve
RE: Multiple Trading Names
emplaw | 21/11/2003 04:37 PM
I would favour the following
Steve Newbold T/A Fiction Imaging
Address etc
and Steve Newbold T/A Steve Newbold Photography
Address etc
on all the bills, letterhead details as long as it is mentioned somewhere on the item you will be fine with putting just the trading name in a prominent position.
------------------------
LawHound Limited www.lawhound.co.uk
01244 300413
RE: Multiple Trading Names
emplaw | 22/11/2003 05:37 PM
It should be included on your web site if you are a sole trader, partnership or a limited company. We show on ours the full name of the company which is limited and the business address ( also this is the registered office address) with full post code. This is required under the Business Names Act as well as in a limited company case the Companies Act also.
There is with all limited companies the added protection of the free searching facility on the www.companieshouse.gov.uk website to check out details. There is not a similar centralised checking mechanism for sole traders and partnership.
------------------------
LawHound Limited www.lawhound.co.uk
01244 300413