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xoggoth
18th January 2004, 12:56
Have company set up with another to sell software we have developed jointly. Profits will be split 50/50.

Also developing my own software for same market which I originally planned to sell via my own limited company.

Joint advertising on both company's websites might be beneficial. It would also save on costs of Worldpay subscription if one company acts as online retailer for the other.

Are there any tax or other complications if two companies with a common director share resources in this way?

Or are there any ways, other than paying salary, of apportioning sales profits according to product if it all went through the joint company? Continually altering the share issue to vary dividend hardly seems practical.

fiddleabout
18th January 2004, 21:30
One thing to consider (esp. with IR591 in the offing) is whether you want to put this business through your ltd.

Currently my KwikBreaks and ********* income goes through my company - handy justification for putting ADSL and assorted computer equipment through it.

ITdoctors was half paid for by Rhino and goes through both of our ltds - the income from the accountant sign ups ( www.itdoctors.co.uk/accountant.php (http://www.itdoctors.co.uk/accountant.php) ) goes to Rhino's ltd as he does all the work on that plus he did me a very good turn tipping me off to them - far better service and cheaper than my old accountant.

When we get the new site running ( www.************.co.uk (http://www.************.co.uk) ) it will include the accountancy referral as well as offshore and that will be handled by us as individuals in the same way ******* is and our yet to be created www.autobits.co.uk - all income split then declared and taxed as self employed.

Ltds. may start looking far less attractive very soon.

xoggoth
18th January 2004, 22:43
Yeeees. We set up the company early November about a week before this bloody new thing was muted. Sometimes I feel I am being personally got at.

Fortunately, the only products we have to sell are provably our own property and the company only cost £56 to set up so this is a possibility. Downside is that I know all the ins and outs of running limiteds and nowt about SE so is just another lot of hassle to contend with.