Ltd Company - Joint Share holders

[Nixon Williams]

Presumably you don't think the associated business rules would preclude both companies from joining the flat rate scheme in this case?

No - not in my client's case.

"You are associated with another business in this special sense if:

■ one business is under the dominant influence of another
■ two businesses are closely bound by financial, economic and organisational links or
■ another company has the right to give directions to you
■ in practice your company habitually complies with the directions of another. The test here is a test of the commercial reality rather than of the legal form."

[Iain-Le-Roi]

Hi

Sorry not been on the forum for a while, it wouldnt let me on for a few days and looks like they've made some changes. Thanks to everyone who posted their advice. I think for now I will stay with one company with a view of maybe splitting it to two companies for the next tax year as to avoid being moved off the FR.

Thanks to Nixon for posting on here as you mentioned its not your normal practice to do so for a particular client. It has helped me understand the situation better, getting a mix of views.

Cheers

Iain