Using a LTD co for multiple lines of business

[Torrango]

Would it be problematic using a ltd "designed" as a contractor vehicle (e.g. via SJD, NW et al) for other lines of business? E.g. say I wanted to sell stuff on a website, employ somebody etc?

I guess the main reason to this is to keep overheads low for any "Plan B" ideas I might have by just using one ltd co. Guess this might also be more likely to make the company seem legitimate rather than some ir35 dodge.

[BolshieBastard]

Would it be problematic using a ltd "designed" as a contractor vehicle (e.g. via SJD, NW et al) for other lines of business? E.g. say I wanted to sell stuff on a website, employ somebody etc?

I guess the main reason to this is to keep overheads low for any "Plan B" ideas I might have by just using one ltd co. Guess this might also be more likely to make the company seem legitimate rather than some ir35 dodge.

There's no problem doing this. All the income is just treated as being from different sources but belongs to your Ltd Co.

The only time I'd avoid this arrangement is if you contract through your ltd co and also have another business, say a franchise. The franchise could get arsey if you 'hide' the contract income from them even though its nowt to do with them. Also, if you had to send your accounts to them once a year, they'd also be aware how much other income you had unless you had your accountant do 2 P&L reports.

[ASB]

- The entire assets of the buisness are at risk in the event of being sued etc. if they are not seperate entities

- The M+A must allow the activity (though most tend to say "and anything the directors feel like")

- Your accountants may wish to change their fee structure or may indeed decline to act for you, it's up to them the terms they do business on.

[Little'Old Me]

Would it be problematic using a ltd "designed" as a contractor vehicle (e.g. via SJD, NW et al) for other lines of business? E.g. say I wanted to sell stuff on a website, employ somebody etc?

I guess the main reason to this is to keep overheads low for any "Plan B" ideas I might have by just using one Ltd co. Guess this might also be more likely to make the company seem legitimate rather than some ir35 dodge.

It can sometimes be easier to do it under one Ltd Co. You can have different trading names, & bank accounts so you can track how each business separately.

Increasing a number of the tax specialists in my area I chat to, say they are recommending clients use trading names, rather than separate Ltd Co's. With the rules to do with "associated companies" it actually makes more sense to put them under one Ltd co.

Its quite easy to do "consolidated" accounts, as long as the records are good.

[Pickle2]

You'll need to leave the FLAT rate VAT scheme though if you are in it. Assuming the contracting will still make more money than the shop, otherwise you will lose a bundle paying IT FRR on your sale of supplies.

[Torrango]

Thanks for the replies. Shared liabilities are a good point - if a second line appears to be taking off, it could be hived off into a separate company.

As for the M&As, I think most are pretty non-restrictive "To carry on the business of a general commercial company" etc so that should be okay.

The main advantage from a tax point of view would be that I could offset expenses from one line against the income from contracting.