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Adam Hunt
Adam Hunt, Accountant
Category: Tax
Satisfied Customers: 389
Experience:  FCCA, FFA, FFTA
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Not sure if my question is for a lawyer but I'm looking for

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Hi Pearl, not sure if my question is for a lawyer but I'm looking for advise regarding setting my own business. I have just started with a website but looking to expand in the next year. What would be the best way to start and perhaps be able to write-off some of those early setting up and training fees from my tax. I should mention that I'm currently employed.
JA: Where are you? It matters because laws vary by location.
Customer: I'm based in Reading
JA: What steps have you taken so far?
Customer: I have visited my local accountant who told me that I should set myself up as a sole trader before I can write off the costs which makes sense but to be aware that if the costs>profit the negative balance will affect next year's profit. Again, perfectly logical. He suggested that limited company would be better suited when I'm already set up and have a sizable income.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: I'm afraid though that I have missed the boat as the deadline for registering as a sole trader was 5th October.

Hi I am one of the experts. I agree with the advice of Accountant you have met. If you are just very small business at the moment then sole trading is not a bad idea. If your company though is registered then you business name can be more visible as can be seen on companies house and this might give you little edge on branding.

Hope I have answered your question?

Customer: replied 1 month ago.
But can I still register as a sole trader?
I thought that there was a deadline...

Have you started a business 3 months ago?

I understand 5 Oct deadline but let me share my experience. A client has done so and he has not received any penalty but I understand all situations are different. In case if we are talking about 2018/19 tax return (6/4/2018 to 5/4/2019) then 31/1/2020 is the deadline. I can wish you luck and use this link please https://www.tax.service.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dep

Hope I have answered your question?

Customer: replied 1 month ago.
Thank you Adam. That's been helpful. But if I register as a sole trader today can I claim back expenses related to training against that sole trading entity if it was crucial to set-up and grow the business?

Reasonable expenses that belong to the business within a reasonable time frame should be alright.

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