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Previously on "Using LTD for another purpose"

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  • MonkeysUncle
    replied
    Originally posted by Craig@Clarity View Post
    You can do this under your already established limited company. No need to set up a brand new one unless she's set on it. As others have mentioned, if the company is VAT registered, then her sales would need to include VAT unless it falls into the zero rated category.

    If the numbers are small, go/continue as a sole trader and if it does boom, then think about sticking it into the company.
    Thanks Craig
    I guess I could always de register for VAT.

    As mentioned above, my accountant wont support this and have said I would need to get a new accountant. At this point in time, its not worth using the LTD and having to move to a new accountant.
    Start small and as you say, if it booms I can look into this again.

    Leave a comment:


  • Craig@Clarity
    replied
    You can do this under your already established limited company. No need to set up a brand new one unless she's set on it. As others have mentioned, if the company is VAT registered, then her sales would need to include VAT unless it falls into the zero rated category.

    If the numbers are small, go/continue as a sole trader and if it does boom, then think about sticking it into the company.

    Leave a comment:


  • eek
    replied
    Being blunt it's not worth the hassle - just go sole trader and remember that environmental health will need to check your kitchen and she better be good at paperwork for there will be a lot of it - as the paper trail is everything.

    Leave a comment:


  • MonkeysUncle
    replied
    Cool
    Thanks for the replies.
    Interestingly (and annoyingly) my accountant has said its better to start a new ltd as it could cause tax issues (didn't go into detail), and more over, they wont support this set up. I would have to get a new accountant.

    Paralytic, yes just something to do at home to get some extra cash so we are not talking big numbers.
    Seems like sole trader would just be easier.

    Leave a comment:


  • Paralytic
    replied
    Assuming your Ltd is VAT registered, then unless your wife's business is expected to take her over the VAT threshold (I'm guessing its one of the hundreds of home-cooking businesses now prevalent on facebook, so won't be) then doing that will mean she is 20% more expensive that any competitors (or she'll have less margin).

    As others have said, we need more details, but on the face of it, it sounds like staying a sole trader might be better.
    Last edited by Paralytic; 16 March 2021, 17:48.

    Leave a comment:


  • northernladuk
    replied
    Depends what your missus financial situation and volumes you are talking about. LTD's only beat umbrellas up to 30k so if she doesn't have an income and it's just doing this for a bit extra cash the LTD will almost certainly been more expensive.

    We need details rodders, details. Actually we don't. Speak to your accountant who can crunch the numbers for you.

    Leave a comment:


  • ladymuck
    replied
    You can do it quite easily - you just need to change the classification on CoHo. I have no idea how you change the classification that's shown on your VAT certificate as I've periodically tried looking for that as my accountant back in the day when I was setting it up picked something very peculiar.

    If you're going to be holding stock then you might want to look at whether your accounts system is set up to manage that.

    If there's going to be overlap within your current financial year then you may want to have a look at how you apportion costs and sales, as they've probably been dumped in a single bucket up to now - that's stuff your accountant can help with.

    Leave a comment:


  • MonkeysUncle
    started a topic Using LTD for another purpose

    Using LTD for another purpose

    Hi All
    So I have taken on an FTC role for a while. I was going to make the LTD dormant but the missus has been talking about setting up a business selling food.
    Could she use my LTD for this, rather than setting up her own.

    Before you ask, yes I have asked my accountant, just waiting on a reply.

    If someone has done this, whats your experience, any gotchas I need to be aware of?

    Just to add, I did do a search on the forum as I do remember someone else asking something similar but I cant find that thread.

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