Originally posted by Gaz_M
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Plan B - new company?
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Originally posted by Gaz_M View PostThis is what I thought, both ideas are related to an IT business. If PLan B takes off then I always intended to seperate the two and hopefully eventually close down the conultancy side of things.
However, I use SJD and their book keeping software is not geared up to anything other than contracting. My problem is that I'm very happy with SJD and if my Plan B doesn't take off I have no reason to leave them but how/where do I keep accounts until such time?
A couple of options open to you I'd think:
- Speak to SJD and see if they can help. It's more than likely they've come across this before so should be able to advise.
- Move to a different accountant that can accommodate both Plan A & Plan B via the same Co.
- Use a newCo now for Plan B and have a different accountant look after that in isolation (probably not ideal).
- Maintain the records yourself using online software, excel or sage (or similar products) then get SJD/another accountant to do accounts at year end (assuming it's a separate co from start).
You probably need a good review of Plan B to ensure you structure things in the best way, optimist your VAT position etc.
HTH
Martin
Contratax LtdComment
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Originally posted by Gaz_M View PostHowever, I use SJD and their book keeping software is not geared up to anything other than contracting. My problem is that I'm very happy with SJD and if my Plan B doesn't take off I have no reason to leave them but how/where do I keep accounts until such time?
I've done it both ways. If your Plan B operation is small it should be pretty simple: no reason to pay a salary, might not need to register for VAT, just pay yourself dividends if and when you want to and put that on your SA.
It is probably easier to do it all through one company. But of course that means one side of the business is liable for the other's debts, so if your Plan B ended up failing owing thousands you'd be covering it out of your contracting income.Will work inside IR35. Or for food.Comment
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Originally posted by VectraMan View PostFrom what you describe, I'd have thought the SJD spreadsheet works well enough.
I've done it both ways. If your Plan B operation is small it should be pretty simple: no reason to pay a salary, might not need to register for VAT, just pay yourself dividends if and when you want to and put that on your SA.
It is probably easier to do it all through one company. But of course that means one side of the business is liable for the other's debts, so if your Plan B ended up failing owing thousands you'd be covering it out of your contracting income.
It's the buying and selling part of a second business that is difficult to fit into the spreadsheet. I can put all my website expenditure through 'computer related costs' but there is no provision for buying and selling of stock.
I've contacted SJD before when I had my original idea and they said I may have to join their sister company 'Easy Accountancy' to make this work under one company but I'd sooner try to keep it where it is until I know if/when it will take off.Comment
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Just one thing to consider re VAT. If you're VAT registered for contracting, then running Plan B through the same Ltd will of course mean Plan B is also liable for VAT. ie. you have to charge your customers VAT (or pay it for them).Comment
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Originally posted by JRCT View PostJust one thing to consider re VAT. If you're VAT registered for contracting, then running Plan B through the same Ltd will of course mean Plan B is also liable for VAT. ie. you have to charge your customers VAT (or pay it for them).Comment
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