my spouse joins in my ltd?

[IR35 Avoider]

Yes it was.

One limited, doing more than one line of business. Similar to, for example, Rank Hovis MacDougal, Virgin or ICI. Losses made by one line of business are offset against the profits of the other - e.g. Dulux makes lots of money, ChlorChems does not.

Dulux and Chlorchems sound like related types of business (pharmaceutical?) and probably aren't the same company anyway. In general I would guess the big named companies you mention are in the opposite situation to you, i.e. they go beyond having one company per business and within each business have a separate company for every minor project. For example, a family friend is COO of a mining conglomerate and his list of directorships includes 30 odd companies many of which are wholly owned subsidiaries that (judging by their names) exist only to exploit a particular parcel of land per company.

Virgin would probably be your best example, since the Virgin businesses are so diverse that the only common link is Richard Branson. But again, I doubt that Virgin Airlines, Virgin Mobile, Virgin Records and Virgin Bride (sells wedding dresses) are all one and the same company.

Let me put what it this way; I don't know when one can or can't get away with offsetting the losses of one business against profits of another, but I believe this can be a problem.

(I must try to remember it's you I've had this debate with; if it happens a third time then I'm definitely senile.)

[xoggoth]

Horrid. Seems you are right tim123. You had me worried there as I have business and wife will shortly start one. However, as we each have other business partners I don't think it applies. I can put the divorce papers away.

Not sure it really makes any difference now that CT is flat rate anyway apart from complicating the paperwork. However the existence of this rule surely points to lenbod and wife using one company since there cannot be an advantage for CT purposes and two companies is just duplicating costs and paperwork.

Bit of expert advice needed. There is an online accountant that answers one quesion for five quid or something or try accountingweb.

http://www.accountingweb.co.uk/cgi-b...mat=%25o-%25B/