Writing software AND contracting?

[bigugly]

Is it legit to make my own software in the down-time between projects? I realize this is probably a silly question to many of you, but in other countries you sometimes need to register the purpose of a business so it's not necessarily the case that a contracting business can also produce products (in this case software for download).

[CheeseSlice]

I'm not sure the nature of your business can simply be 'contracting'.
Are you using a LTD company? if so then you will already have decided a principle activity when setting up. You may also have declared what you do to HMRC for VAT rates etc.

[VectraMan]

Principal Business Activities List

"Other Software Consultancy and Supply" is what mine says. Which is handy if you want to do both software consultancy, and supply software.

So it may be an issue if you were some other sort of contractor, though it does say "principal" activity, i.e. not only activity. I imagine the accountants will tell you unless it's a very small side business, you might be better off setting up a second Ltd company.

[northernladuk]

Is it legit to make my own software in the down-time between projects? I realize this is probably a silly question to many of you,

Correct

Someone asked about a plan B in a thread the other day and the outcome was that they can do anything they want in the business but must be registered on their principle activity and will be charged VAT at that rate.

You mention making your own software, you didn't mention selling it so it doesn't matter anyway. I do my garden in between projects and doesn't affect my principle business. I just don't make any money on it so it doesn't matter.

Working out your flat rate percentage and the VAT you need to pay
Working out your flat rate percentage
There is a range of flat rate percentages that correspond to different business sectors. You must choose the sector that best describes your main business activity for the coming year. You must only use one percentage. So if you work in more than one business sector, you must use the one that represents the greater part of your turnover. You then apply that percentage to your total turnover.

[northernladuk]

The above is for VAT, it appears a company can have up to 4 prinicple activities from Companies House perspective.

Principal Business Activities - The Principal Business activities of a company are shown by the SIC Code. The company can have up to a maximum of four codes / activities displayed on the Annual Return.

[DirtyDog]

The above is for VAT, it appears a company can have up to 4 prinicple activities from Companies House perspective.

No, you can have up to 4 principAL activities. You've even copied and pasted it correctly below it

[northernladuk]

No, you can have up to 4 principAL activities. You've even copied and pasted it correctly below it

Nice spot. Note to self, no more copying and pasting in future

[raphal]

Correct

outcome was that they can do anything they want in the business but must be registered on their principle activity and will be charged VAT at that rate.

I intend to do forex trading through my ltd company. I will check with my tax consultant on this, just thought post it here to know if anyone already doing this through their ltd company's bussiness account.

[eek]

I intend to do forex trading though my ltd company. I will check with my tax consultant on this, just thought post it here to know if anyone already doing this through their ltd company's bussiness account.

if its not your main source of income its more tax efficient to do forex trading via a spread betting firm, as gambling is not taxable until your living is derived from it.

[bigugly]

The above is for VAT, it appears a company can have up to 4 prinicple activities from Companies House perspective.

Excellent, that gives me a LOT of room to code.