Help- confused about keeping records for two businesses

[ojbsmum]

I've been selling Usborne books for about 18 months and have managed so far to muddle my way through my book keeping and filling out my first tax return. I've done the HMRC introduction to self assesment course and am soon to do an intro to book keeping to help me feel a bit more confident.
I keep receipts for everything I buy for the business, keep a separate mobile phone etc.

I've recently started doing some private tutoring as well.
As I'm already registered as self employed do i need to tell HMRC I've started to do this or just add it on to my next tax return? (I've tried calling for advice but no-one answers!)
I'm keeping separate accounts at the moment (so I can see where I'm making money and where I'm not!)
Also, how should I be dealing with things such as the phone and printer ink which are for 'business use' but both of them? Do I just record say all my phone top ups on as being for the tutoring as at least then they're recorded or do I have to split them percentage-wise between the two? That just sounds too complicated!

Just feeling a bit confised as to what I should be doing to keep everything legal and above board but as simple as possible!

You don't need to notify Hmrc of new venture if you are still sole trader, ie not a limited company. You just add the income to your self assessment. Expenses can be shared. Just imagine it is one business with 2 different services offered.

That's not correct. In theory you are supposed to keep separate records for each business and calculate profits and losses separately and bringing them together in a prescribed manner. This helpsheet tries to explain it. The key point is that you are not allowed to set off losses of one business against the profits of another.

In practice most people in your situation would probably keep everything as one self-employment - you could always describe the business as 'academic supplies and services' which would cover both activities.

Thanks for your replies.

Mr A, if I can keep it as just one business and one set of books that sounds by far the easiest option. I just want to keep things legal and above board!
So would you suggest I contact HMRC and change my named business on my self assessment forms from Usborne Book seller to Academic supplies and services then? Or leave it til I do my next tax return?

I'd leave it for your tax return

Just resurrecting/hijacking this thread to ask a similar question. I am a Childminder thinking about branching out into the Bouncy Castle business.
Initially I want to run the two businesses alongside each other whilst I gauge the market. I think that Childminding has it's own quirky accounting principles. Could I run the two businesses concurrently under a Childcare/entertainment banner??
Also I do not currently have a separate business bank account. Should I set one up??

Could I run the two businesses concurrently under a Childcare/entertainment banner??

You can do whatever you want externally, but internally you would have to keep the income separate (you can only claim the 10% wear and tear on childminding income), would need separate insurance etc.

As far as HMRC are concerned you don't have to notify them when you start the new business, but when you fill in your tax return fill in a separate Self Employment page for it.

There is no legal reason to have a business bank account as long as you keep accurate records so that business income and expenditure can be clearly identified, but your bank may not be happy with you using your personal account because they charge more for a business account! If they threaten you with charges, threaten them with moving - although they may call your bluff