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)

 

[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! )

 

[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)