Can you have two salons as seperate business when a sole trader?


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Active Member
Jan 17, 2009
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hello everyone

this is my first post on salon geek

can anyone help me???????????
im currently in the middle of buying a 2nd salon which has been est for 12 years, my first salon is not over the vat threshold , so how would a tax return work ,would i do two seperate returns? as they are two seperate business,
2nd salon is not over the vat threshold either but with the two combined it would be ,

does anyone no if u can have two buisness in same trade and not be as one business?
i cant find any answers anywhere , have been on phone to hmrc with no luck on hold for 14 mins

any replys would be great thanks xxxx
You as the owner and sole trader of both businesses, even if they are in separate locations and two different business names, are responsible for including income from both salons in your tax return. So yes combined income for both but not too sure about VAT though. Think you may have to combine them if they are both the same name???? Check on this one.

The only way to keep them separately, in a sense of you not combining them both on your tax return would be to make one or both a ltd company. You would then be employed by the ltd company, get paid a wage and can take dividends, the company would pay corporation tax but would be separate from your sole trader salon and VAT would not be an issue.
You need to check this out but all I can tell you is that ten years ago I had two shops and although - like you neither was over the VAT threshold the two combined were and I HAD to register for and pay VAT on both :-(

Rules may have changed now though so you , as I said need to check that out
You'll have to fill two supplementary pages on your tax return, one for each business.

As the two businesses are in the same 'field' you have to combine their takings and register for VAT if it's over the threshold.
Each of my salons is a seperate ltd company, so the vat is not combined. If I did both as sole trader then they would be combined for vat purposes.
thanks everyone all your answers have helped me

i will set second salon up as ltd company thanks again xx

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