Use Ltd Co for other stuff?

[ChuckW]

I apologise in advance for ignorance. I am making serious efforts to wade through all this stuff, seriously. But...

I am likely to start a Ltd Co next week to do an IT contract (and hopefully more to follow). But I also have an income from getting books published (ie: advances, royalties and whatever fees I can get my paws on). Can I put that writing income into the co I have set up for IT contracting? Or can you only use the co for the srea of business you have declared it for?

Thanks!

CW

[xoggoth]

Can't think of any reason why not. You can change or add to the areas a company is involved in, see Co Hse website. It's on the annual return, also stated in 1 line in accounts usually.

[TykeMerc]

You can put any real business through a company, that being said there can be advantages to splitting business across more than one simply to protect the business from the risk of an activity which carries liabilities. If you're comfortable that the activities won't provide a risk then it's a non issue.

e.g. If your IT contracting attracts a financial liability the publishing royalties as an asset of the company can be taken to pay off the liabilities.

[ChuckW]

Thanks for replies. Makes total sense. One further q: does you know of any financial drawbacks to running these different areas as two separate companies? I get the advantage - minimise exposure from one to the other.

Cheers,

CW

[b0redom]

does you know of any financial drawbacks to running these different areas as two separate companies?

CW

Well 2 sets of financial accounts = higher costs I guess it also makes your tax return a little more complex I guess. Assuming dividends and salary from both companies.

[Sockpuppet]

If the publisher will accept you as elf Employed go for it as you can make your affairs more tax efficient than going through a LTD.