Expenses for new business under Ltd. Company

[tradersaq]

Hi,

I have been contracting through my UK limited company and am thinking of trying an oversees business model which is different from my existing contracting business. To run the new venture, I am thinking of paying out expenses from my existing limited company for invoices that I receive for the oversees contracts & any resources that I might hire. Is that going to be a correct practice?

I have thought of setting-up a new company but in that case I would have to pay for the new business using my tax-paid money.

Would appreciate any comments.

[simondolan]

Hi,

I have been contracting through my UK limited company and am thinking of trying an oversees business model which is different from my existing contracting business. To run the new venture, I am thinking of paying out expenses from my existing limited company for invoices that I receive for the oversees contracts & any resources that I might hire. Is that going to be a correct practice?

I have thought of setting-up a new company but in that case I would have to pay for the new business using my tax-paid money.

Would appreciate any comments.

Nothing to stop you running two trades through the same Company. Not a long term solution as it can become very complicated, but nothing to stop you in the short term.

[tradersaq]

So that means, if I get a monthly/quarterly invoice for the work done by the oversees company or resource, I simply pay their oversees account from my existing business and keep the invoices as expense towards my accounts?
cheers.