Running a business "On Paper". How to do?

[Orionaut]

I am/was self employed. Cv has killed my business dead. It will never recover.

Now, this isn't as bad as it sounds personally. I was moving to retirement anyway and I am fine financially but before Cv came along I had intended to carry on at a low level as a hobby operation.

However, I would like to keep the business running at a paperwork level.

(Not least because Motor trade insurance is a damn good deal )

There are plenty of huge businesses out there that consistently operate year after year at a loss/for no profit.

But how does this work as a personal/self employed operation, and how does one actually do it at the paperwork level?

(And while everybody else is claiming free money from the Government, Am I entitled to some too? After all I will be paying taxes to pay for it whether I claim any or not so I don't see why I shouldn't get some if I can)

 

[VincentHanna]

No expert, but I believe you can keep a company dormant and file dormant accounts every year.

Edit - Though actually that's not what you want, sorry for confusion.

 

[Orionaut]

No expert, but I believe you can keep a company dormant and file dormant accounts every year.

As self employed, I don't do "Accounts" as such.

Simply annual VAT returns and personal tax.

As regards the general question. It is the VAT thing that is the issue.

How would VAT respond to a near zero turnover?

(I don't want to ask because that draws attention to oneself. After all it isn't paranoia if they really are out to get you! )

 

[MichaelAwkward]

Assuming you're registered for VAT - you can deregister if you meet certain criteria - https://www.gov.uk/vat-registration/cancel-registration

You'd have to keep it if you made any VATable supplies though and submit a return. They must be zero to deregister.

 

[Orionaut]

Assuming you're registered for VAT - you can deregister if you meet certain criteria - https://www.gov.uk/vat-registration/cancel-registration

You'd have to keep it if you made any VATable supplies though and submit a return. They must be zero to deregister.

To make clear. I don't particularly want to deregister.

It is advantageous to retain the VAT number even if I make no claims and make no sales.

(Or make claims and then account for them as personal usage)

 

[MichaelAwkward]

To make clear. I don't particularly want to deregister.

It is advantageous to retain the VAT number even if I make no claims and make no sales.

(Or make claims and then account for them as personal usage)

Then you need to complete returns, even if the supplies are zero. Won't take long.

 

[Pudney]

There's no such thing as running a business "on paper". You are either running a business or you're not. A hobby isn't a business. If you intend to argue a business is continuing then make sure you keep records of what you're doing, particularly if turnover is low.

You may wish to keep the VAT registration, however, if you aren't running a business you're not allowed to be VAT registered. Would be an awesome tax reduction method otherwise and make the entire VAT system pointless.

You may be eligible for the SEISS, if you were then HMRC should have contacted you. Likewise for the local council grants. Otherwise, there's potentially the Business Bounce Back Loans.

None of the above should be construed as professional advice and I take no responsibility for any reliance placed on this by you or any other person.

 

[jamoor]

I don’t even know what you’re asking here.
There’s practically no red tape to running a business in the U.K. and if you’re self employed then you don’t even need to say you’re doing it unless you make money.


What do you do?