Sole Trader Accounts Combined With PAYE

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
Hi, I'm thinking about starting my own business and my first client runs a small sole trader business. He also does occasional PAYE work (paying emergency tax). I was wondering whether the two seperate incomes should be shown on the business accounts (If the PAYE income is not used as capital)? I'm pretty sure the answer is no as the business and owner are seperate legal entities but require confirmation if someone could oblige.<BR><BR>Many thanks.

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  • System
    System Posts: 100,537 🤖 Admin 🤖
    Sole Trader Accounts Combined With PAYE

    Hi,<BR>You are quite right, his income from his business as a sole trader is included on his accounts only. However, when you come to completing his Tax Return, you have to take ALL his income to account. This will include what he earned from PAYE. You will need to complete a self-employment Tax Return and a supplementary one for Employment. It is on that one where you will have to enter his income from employment. <BR>If you need any more advice, please feel free to contact me again. I, myself, have only been running my own business for 8 months now and I know what it is like when you are just starting out<BR><BR>Good Luck<BR><BR>Doug
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Sole Trader Accounts Combined With PAYE

    Many thanks for your help Doug - it is greatly appreciated!!!<BR><BR>Martin

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