Thanks for the input from everyone.
Sorry, i totally forgot there is an association rule in place.
I was thinking may be my surplus is good enough to start my own property BTL company. but because it will count as CIC i.e. attract alot higher tax. i don't want my main engineering income to be polluted. i wonder how that would work, since company A is small business and is subject to 20% CT and the other one is 28%.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: starting a sub-branch
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "starting a sub-branch"
Collapse
-
Originally posted by Platypus View Post
Leave a comment:
-
Originally posted by dynamicsaxcontractor View PostI thought it would still be 300K limit split between the 2.
e.g. Association Rules - UK Business Forums
Leave a comment:
-
Originally posted by Nixon Williams View PostWhi
Using two (or more) companies will reduce the limit of when the small company rate of corporation tax applies. Not sure what your profits are but a small company can make upto £300K profits and pay 20% corporation tax, if you have two companies this is split, to £150K each.
Alan
Leave a comment:
-
Originally posted by Friday Blue View PostHi all,
Just wondering is it possible/difficult to create another company using my current limited company to finance the initial cost. (i.e. company A put some money into company B and hold all the shares in company B). Main reason is that, my current company being an engineering company doesn't quite fit some of the business activities/ideas i have in mind i.e. selling things on ebay or websites etc. so may be i can channel some of the retained profit from this year and "invest" into another company?
anything i should look out for? (just intital ideas at the moment, will give it more thought once I get some pointers)
Cheers + thanks in advance
Assuming that your company has been set up with the normal rules etc, then your company can undertake any activity the directors deem fit.
An extra company will create more cost and hassle unless you have some other reason for doing this.
Using two (or more) companies will reduce the limit of when the small company rate of corporation tax applies. Not sure what your profits are but a small company can make upto £300K profits and pay 20% corporation tax, if you have two companies this is split, to £150K each.
There are rumours that the Chancellor will announce the aim of just one rate (probably 20%) for all companies in the future but this will probably be a few years away.
Alan
Leave a comment:
-
starting a sub-branch
Hi all,
Just wondering is it possible/difficult to create another company using my current limited company to finance the initial cost. (i.e. company A put some money into company B and hold all the shares in company B). Main reason is that, my current company being an engineering company doesn't quite fit some of the business activities/ideas i have in mind i.e. selling things on ebay or websites etc. so may be i can channel some of the retained profit from this year and "invest" into another company?
anything i should look out for? (just intital ideas at the moment, will give it more thought once I get some pointers)
Cheers + thanks in advanceTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: