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Side project using the money from my limited company

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    Side project using the money from my limited company

    Hi all,
    I'm a software engineer and I work as a contractor (I've an LTD).

    Now I'm about to start an eCommerce. My question is:
    Can I use my LTD to sustain this eCommerce as well? Can I pay form advertisement? Can I get payed there for the products I'm going to sell?

    #2
    Originally posted by Mid90 View Post
    Hi all,
    I'm a software engineer and I work as a contractor (I've an LTD).

    Now I'm about to start an eCommerce. My question is:
    Can I use my LTD to sustain this eCommerce as well? Can I pay form advertisement? Can I get payed there for the products I'm going to sell?
    Yes you can, but talk to your accountant about it as there may well be issues with things like VAT reporting etc. if what you are selling carries a different VAT rating to the one you are using atm. (assuming you are on the FRS).
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

    Comment


      #3
      Originally posted by DaveB View Post
      Yes you can, but talk to your accountant about it as there may well be issues with things like VAT reporting etc. if what you are selling carries a different VAT rating to the one you are using atm. (assuming you are on the FRS).
      Of course, the simple solution to this would be to come off the FRS, which may make sense anyway if you're going to be buying stuff to sell.

      There may be other options for how you structure your business, definitely speak to your accountant about the different approaches and which makes sense for you.

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        #4
        Ok, this is good.
        My accountant said that is not possible because is not related to what I do for living. This is very strange, that is why I asked here. Now how can understand if my accountant is capable of something like that??
        My accountant is from sjdaccountancy. I thought they where the best...

        Comment


          #5
          What will the ecommerce business be trading in? What will you be selling?

          Comment


            #6
            Originally posted by Mid90 View Post
            Ok, this is good.
            My accountant said that is not possible because is not related to what I do for living. This is very strange, that is why I asked here. Now how can understand if my accountant is capable of something like that??
            My accountant is from sjdaccountancy. I thought they where the best...
            I don't want to be rude but looking at your original question it doesn't make a lot of sense so difficult to understand the detail. Are you sure you have explained the situation clearly to the accountant or is it possible something may have gotten lost in the emails? You are being very vague with the question and the response above so don't really know how to answer.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by Mid90 View Post
              Ok, this is good.
              My accountant said that is not possible because is not related to what I do for living. This is very strange, that is why I asked here. Now how can understand if my accountant is capable of something like that??
              My accountant is from sjdaccountancy. I thought they where the best...
              And there is your problem right there.

              They are a contractor accountant and not interested in anything other than the contractors formulaic business.
              When freedom comes along, don't PISH in the water supply.....

              Comment


                #8
                Originally posted by northernladuk View Post
                I don't want to be rude but looking at your original question it doesn't make a lot of sense so difficult to understand the detail. Are you sure you have explained the situation clearly to the accountant or is it possible something may have gotten lost in the emails? You are being very vague with the question and the response above so don't really know how to answer.
                Hi, thanks for your reply.

                The question is vague on purpose. I'm just asking if I can invest the money earned with my daily job, in another business using the same LTD.

                Comment


                  #9
                  Originally posted by GillsMan View Post
                  What will the ecommerce business be trading in? What will you be selling?
                  It will be mostly "costume jewellery"

                  Comment


                    #10
                    Originally posted by Mid90 View Post
                    It will be mostly "costume jewellery"
                    Then SJD are probably correct in what they say. It's fine for companies to diversify, but on companies house, you need to specify your nature of business. You can select more than one category, but since different products/services can attract different tax rates, it's advisable to create two separate companies to handle the disparate services you are proposing.

                    Since costume jewellery and software development are very different, it doesn't make sense to handle both under the same company. You could in theory have a holding company that owns both, but SJD have probably come to the conclusion that it doesn't make sense to do this in your situation.

                    You'll therefore need a different company for your new venture.

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