I have gone to sign up for a business account with Paypal, would it be better to have a separate account for personal and business or better to merge both?
I have always had both. If you mix them and HMRC audit you, you have to be able to,explain every in and out, so easier to have separate.
2 Likes
For doing your tax return its better/ easier if you keep your business and personal spending separate.
1 Like
Makes sense thanks
Please tell me you don’t have to be self employed to sell on here.
If you are selling for profit you are self employed. You may also need a business bank account for paypal business. Plus public and product insurance.
1 Like
As Caroline says if you are selling for profit you are self employed and should register with HMRC. However, I think if your turn over (that’s turn over and not profit) is under £1000 HMRC don’t require you to do a tax return (although it is a really simple process so long as you keep a spreadsheet as you go). Double check on the HMRC website as I might be mis remembering or they might have changed the rules.
3 Likes
I did my tax return this week and as @SashaGarrett says, if your turnover for self employment is under £1000, you do not have to declare it. I registered as self employed a long time ago, but as far as I recall it was one phone call and they were very helpful.
I forgot to say that when I became self employed there was something like a 90 day period of grace between starting your self employment and having to register. Anyone know if that’s still the case?
3 Likes
I have mine for business as it is easier to keep things separate from personal finances, especially when you are just starting out.
1 Like