Software and Cheese

[Monkeynuts]

I want to try and have a plan B

I have an idea for a business , lets pretend thats making cheese.

I currently run a ltd company for contracting purposes its vat registered and its falls under the category of software development as its primary business for tax and companies house.

Can I change the companies status to also add another category say for instance "software development and cheese making" or would I have to set up another Ltd Company?

The reason I ask is I want fund some market research for my new "cheesemaking" idea using money in my existing ltd company I have earnt from contracting. Is this possible ?

I guess I could fund the new idea out of divi but then I incurr tax...

Ta

[doodab]

I think you'll be OK if it's soft cheese.

IIRC my articles of incorporation are general enough I could turn my hand to anything. You might need to update the code on the annual return though.

[Clare@InTouch]

You should be fine, but worth checking the memorandum & articles to ensure they are that of a general commercial trading company.

It might still be worth thinking about a second limited company - if plan B goes pear shaped you wouldn't want it to take down plan A too (or vice versa). Equally, if you stop contracting you can close down the company and potentially gain from a capital distribution, without worrying about then transferring your cheese business to a new company.

[Monkeynuts]

Thanks a lot for that..

If I set up a new company can I transfer cash from Company A to company B...or is there tax to pay or summat?

[xoggoth]

If you properly show the transfers as loans in the accounts I can't see why there would be a problem.

[MarillionFan]

Lets call cheese, say ... a Tat Shop. A shop selling Thai Tat

Cough. Works for me.