Complicated Help!

WebTrust · Oct 21, 2011

I have 3 businesses currently.

I run all as a sole trader, I'm not VAT registered.

I want to send one of the business LTD and keep the others as a sole trader.

I would like the LTD to be VAT registered and the other two, not to be.

The business I want to go LTD and VAT registered is selling to the wholesale market so need it really.

Are there any problems with doing this?

My other questions.

I'm confused by the whole putting money into a LTD company, with charges on the money and it being loans etc...

I would just like to put some assets into the company and cash to start with, can I just do this, or do I have weird loan stuff that then has to be paid back and have to pay VAT on the loan....:S complicated.

It's all very confusing. any help?

Truemanbrown · Oct 21, 2011

WebTrust said:
I have 3 businesses currently.

I run all as a sole trader, I'm not VAT registered.

I want to send one of the business LTD and keep the others as a sole trader.

I would like the LTD to be VAT registered and the other two, not to be.

The business I want to go LTD and VAT registered is selling to the wholesale market so need it really.

Are there any problems with doing this?

My other questions.

I'm confused by the whole putting money into a LTD company, with charges on the money and it being loans etc...

I would just like to put some assets into the company and cash to start with, can I just do this, or do I have weird loan stuff that then has to be paid back and have to pay VAT on the loan....:S complicated.

It's all very confusing. any help?

One thing that you need to be careful of is the VAT disaggregation rules whereby HMRC will look at the set up to see if you are trying avoid registering for VAT by splitting the business to avoid going over the registration threshold.

If it is the case that the set up was to avoid registering for VAT then HMRC will seek that all businesses would be shown as one.

If you clear that hurdle then there is NO problem for you lending the company money. It will be shown in the accounts as a 'Director's Loan'. You can reclaim the loan when you want. There are no VAT complications with the loans whatsoever!!!

WebTrust · Oct 21, 2011

Hi

Theres no doubt that it's not for that reason.

The bussiness are not even remotely connected.

One retail, one service, one online, one offline.

Different niche, no connections at all.

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Complicated Help!

WebTrust

Truemanbrown

WebTrust

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