Business Registration

pinoyLiz

Hello I need some advice,
My friend is just starting his own business. He and his partner opened a bank account (no capital deposit yet) last year 2008 for their business although the business is still not operating fully and the only income he and his partner received was from one transaction for £280. He and his partner fell out whilst planning the future of the business and due to other commitments they have decided to think it thoroughly before relaunching the business. This year they want to be serious about the business and go forward no matter what, so this time they have put money into their bank as investment. They want me to be their bookkeeper, what I am worried about is they still haven't registered their business. They are going to register the business this month to make thier financial year the same as the tax year which makes sense. Is the taxman going to punish them for not registering the business last year although the business only had one transaction with £280 income before expenses? and on the process of planning the business the partners decided to stop the business although they want to relaunch it this year? your advice is greatly appreciated.

Thanks
P

trini

pinoyLiz wrote: »

Is the taxman going to punish them for not registering the business last year although the business only had one transaction with £280 income before expenses?

I quote this from a little book i have in my office:

"It is always difficult to give the right answer because, while we know that under the law if the you are earning money the tax man would want to know, even if there is no tax to be paid, there is a famous maxim 'de minimis non curat lex' it means that the law its not concerned with trifles. The advice would be to see if you have made a taxable sum from the activity, if you have you should report it. Your concience will tell you if you should report it.
When an activity is in the grey area of being between non-reportable and reportable, each case has to be taken on its merits and decisions arrived at accordingly. However, in principle, once one its trading (earning money from an activity) Proper records should be kept and HMRC should be told."

pinksponk

I believe you have to register within 3 months of being self employed