More than 1 Ltd company

[jubilee]

Hi there

Was wondering if there was any reason not to have 2 limited companies?

Jubilee

[Clare@InTouch]

You can have as many as you want!

However, you may want to consider common control, which can factor into both VAT and Corporation Tax.

What are you wanting to do, and what end result do you want to achieve?

[jubilee]

Hi Clare

I currently have 1 Ltd company and am VAT registered (voluntarily) - so I want to remove that as I haven't earned the ceiling threshold and unlikely to do so.


Jubillee

[craig1]

Hi Clare

I currently have 1 Ltd company and am VAT registered (voluntarily) - so I want to remove that as I haven't earned the ceiling threshold and unlikely to do so.


Jubillee

If you're doing B2B work then it's usually beneficial to be VAT registered and usually is revenue neutral.

I have two companies and have them as a VAT group meaning no VAT on intra-group business and a single VAT return. Just needs very precise books to make sure the accounts are right.

[Clare@InTouch]

Hi Clare

I currently have 1 Ltd company and am VAT registered (voluntarily) - so I want to remove that as I haven't earned the ceiling threshold and unlikely to do so.


Jubillee

You can simply de-register for VAT if you're below the limit, although it may still be worth being registered if you can benefit from the Flat Rate VAT scheme.

[Martin at NixonWilliams]

Hi Clare

I currently have 1 Ltd company and am VAT registered (voluntarily) - so I want to remove that as I haven't earned the ceiling threshold and unlikely to do so.


Jubillee

Hi Jubillee

As Clare said, it may be worth staying registered and joining the flat rate VAT scheme (if eligible) as this can bring in some extra income to the company. Depending on turnover and category this could easily save you £1-2k+ each year.

If you want any more details on this just let me know.

Martin