Originally posted by Mid90
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You need to either come off the FRS and deal with VAT normally or start a new company specifically for the new business. This may also have the affect oif changing how HMRC treats your contracting Ltd Co. as it may decide it;s primary business is no longer software engineering but trading in jewelry.
There is nothing stopping your current company investing in the new one to get it started. It also has the advantage that you can continue to draw dividends from the current company without the risk that losses from the new business will wipe out any profits that you would normally take this way.
I am not an accountant. You need to have a proper conversation with yours and establish just why they are saying what they are saying.
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