Myself and my wife are living in Thailand. The last time we went to the UK (10 days last Christmas) I sponsored my wife which was no problem as we were both working.

I am no longer working and planning on setting-up my own business in Bangkok over the next two months.

We are planning a trip to the UK for this Christmas and I am unsure how we should proceed. I am worried we will fall between the cracks in the visa system. Should my wife apply as a tourist and in her application explain why she is not being sponsored this time as I am not working? OR apply under my sponsorship but explain that my circumstances have changed but that I am supporting myself from my UK savings.

This is giving me a headache. Perhaps I am worrying unnecessarily.

I cannot see a problem , Just re submit your old visa file , Just up date it with a letter of explanation about your new business venture.

You are worrying unnecessarily.

As long as you have the funds to finance the visit it matters not whether those funds come from employed income, self-employed income, savings or any combination of these.

A Family visit visa is required ?

As she is your wife are you visiting family etc ?