Plan B - new company?

[Lewis]

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?

I use Nixon Williams and they have been fantastic - I told them I was starting a "Plan B" through the company and it was no problem for them at all. They process an order of magnitude more invoices a month for me, and they are mostly subscriptions that span a year (so they have to allocate amounts into each month, spanning multiple accounting years). They don't charge me any more, despite there clearly being more work than a standard contractor and they have never raised the workload as an issue. They have been exceptionally understanding (with all my Plan B questions) and I've always felt they know exactly what to do even when the business started moving outside of the normal contractor model. I don't use any book keeping software with them btw. I would discuss with SJD, see if they are open to such an approach, and if not to be honest I would move to Nixon Williams.

[ContrataxLtd]

This 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?

Hi Gaz

A couple of options open to you I'd think:

1. 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.
2. Move to a different accountant that can accommodate both Plan A & Plan B via the same Co.
3. Use a newCo now for Plan B and have a different accountant look after that in isolation (probably not ideal).
4. 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 Ltd

[VectraMan]

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?

From 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.

[Gaz_M]

From 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.

You're correct, I won't be paying myself any additional salary so the SJD spreadsheet is fine for that.
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.

[JRCT]

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).

[Lewis]

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).

If customers are mainly VAT registered businesses then that won't be such an issue for them, in fact it could even work in your favor by making you not look like a small (perhaps risky) outfit. However if selling to the public that is a very good point!