Can a contracting company also be used for investment and selling products

[Marshall_Clegg]

If you set up a limited company through which to provide contracting services, can that company also take part in other business activities, specifically:

* Can the company sell products (software or other)?
* Can the company make investments (such as buying publically listed shares)?

Even if the company can do this, would any accountant firm that offered a "contractor service" likely include either the accountacy work stemming from the selling of products or investments in the work they did?

If an accountant that offered a "contractor service" would not include work related to those other areas, is it likely that they would cover it for a further fee?

I am just wondering if I would need to engage the services of a more general accountant, or a combination of general and contractor specific, or whether doing it in one company is too much, and that I would need a contractor company and a selling/investment company with different accountants.

Any thoughts would be greatly appreciated.

Thanks,
Marshall

[northernladuk]

Someone hasn't got the hang of the search facility yet.

I can't be bothered reading back but if you do a certain amount of different work under your Ltd you have to re-classify it so paying VAT and the like and the new classification,. If your investments become the greater business you will have to re-classify as an investment company.

As you will see when he search button reveals itself to you there are some detailed examples of investing through your LTD co are not a good idea.

Shifting stock I have no idea about and havn't seen that one mentioned yet but the classification still is to be considered.

Contractor accounting is just a sales point in my book. We are all classed as small businesses so if you have an accountant that says he can only do Contractor Acct's and not normal small business accounts you wanna be getting out quick IMO

Depending on how much extra work there is he will add another fee I guess. go ask him. I would think they are different to a varying degree and negotiation may tip the balance to something you are happy with.

[Ardesco]

Can you do it? Yes.

Should you do it? I would say no, but then it all comes down to personal opinion

(Accountants are useful people to talk to about this sort of thing)

[tim123]

I don't see anything wrong with selling (related) products, but it is inadvisable to use it for "investing"

tim

[xoggoth]

No law against it if you add the activities in companies house annual return but as it is pretty cheap to set up a new company I would be more inclined to do that.

Selling software can add significant complexity to the accounts, like a lot more small transactions, multiple accounts (main bank + Paypal or whatever), website, possible bad debts, some wierd VAT rules and stock valuation. Accounts of my small plan Z company are far more complicated than my contractor business ever was, even though turnover is small.

PS As Northernlad says, any accountant should be able to do either.