sole traders - register ?

**Ardesco** · 1 February 2008, 12:22

Originally posted by moorfield View Post

Is there a register of sole traders anywhere on the web - like the companies house ltdco web check thing ? I need to check out a few people ...

I believe you can leave it up to three months after you start trading to register with HMRC as a sole trader. With this in mind a lot of perfectly legitimate Sole Traders who have not yet started trading, or have not been trading for long would not be on any list even if it does exist.

**Denny** · 1 February 2008, 12:50

Originally posted by moorfield View Post

Is there a register of sole traders anywhere on the web - like the companies house ltdco web check thing ? I need to check out a few people ...

No, that's one of the advantages of being a sole trader. It's mainly for small companies or new start ups that wish to keep their financial position private so that potential competitors cannot see their accounts, as they can with limiteds.

STs must be registed with the HMRC though within 3 months of starting up.

**moorfield** · 1 February 2008, 13:03

Thought that might be the case - Thanks.

**PAH** · 1 February 2008, 13:13

Originally posted by Denny View Post

STs must be registed with the HMRC though within 3 months of starting up.

I think must is a strong word. When I first started contracting, which was direct rather than via an agent, being the naive fellow I still am, it wasn't till I was in my second year there that the manager had a quiet word saying I'd need to contract via a limited company if I was to continue.

Almost 10 years later and I've not heard a dicky bird off IR about my self-employment days. Maybe because I never got round to telling them! Maybe my old client got stung for the tax and NI, but they went bust a few years after I left anyway.

So whilst HMRC say you 'must' register, seeing as they're as incompetent as any other government department, you can sometimes get away with it if you 'forget' or didn't know you had to in the first place.

**Ardesco** · 1 February 2008, 13:14

Originally posted by PAH View Post

I think must is a strong word. When I first started contracting, which was direct rather than via an agent, being the naive fellow I still am, it wasn't till I was in my second year there that the manager had a quiet word saying I'd need to contract via a limited company if I was to continue.

Almost 10 years later and I've not heard a dicky bird off IR about my self-employment days. Maybe because I never got round to telling them! Maybe my old client got stung for the tax and NI, but they went bust a few years after I left anyway.

So whilst HMRC say you 'must' register, seeing as they're as incompetent as any other government department, you can sometimes get away with it if you 'forget' or didn't know you had to in the first place.

Legally, you must. If you want to break the law that is up to you....

**Denny** · 1 February 2008, 17:29

Originally posted by PAH View Post

I think must is a strong word. When I first started contracting, which was direct rather than via an agent, being the naive fellow I still am, it wasn't till I was in my second year there that the manager had a quiet word saying I'd need to contract via a limited company if I was to continue.

Almost 10 years later and I've not heard a dicky bird off IR about my self-employment days. Maybe because I never got round to telling them! Maybe my old client got stung for the tax and NI, but they went bust a few years after I left anyway.

So whilst HMRC say you 'must' register, seeing as they're as incompetent as any other government department, you can sometimes get away with it if you 'forget' or didn't know you had to in the first place.

It's not the end of the world if you don't register as long as you still pay your taxes, but once they find out you didn't register you will be fined. £100 I think it is.

**PAH** · 1 February 2008, 17:52

Originally posted by Denny View Post

It's not the end of the world if you don't register as long as you still pay your taxes, but once they find out you didn't register you will be fined. £100 I think it is.

I assume after 6 or so years they can't do anything about it?

Would hate to think that £100 fine has snowballed into millions due to their own special rate of compound interest!

**PAH** · 1 February 2008, 17:53

Originally posted by Ardesco View Post

Legally, you must. If you want to break the law that is up to you....

I don't intentionally break the law, just find the areas where it's a bit bendy. If they insist on not using shatterproof laws it's their own fault, even if they won't see it that way.

**Ardesco** · 4 February 2008, 09:06

Originally posted by PAH View Post

I assume after 6 or so years they can't do anything about it?

Would hate to think that £100 fine has snowballed into millions due to their own special rate of compound interest!

I believe that they can go back as far as they like depending on the type of investigation, e.g. if they believe fraud was committed they can go back further than 6 years to root it out if they want to.

Of course you have to be unlucky/stupid/dodgy enough for this to happen in the first place.

sole traders - register ?