Franchise or Not???

[Tbozz]

In need of accounting and Legal Advise….

Last November I started trading under the “high street umbrella name” of a good friend, (letting agency) his business is an LTD and VAT registered.

I have just seen that doing my tax returns as self-employed sole trader will be messy so I’m trying to figure out the best way to go ahead as I don’t want get into the wrong side of the tax man, also my turnover will be over VAT threshold in a few months

I am thinking of registering an LTD and still trade under the umbrella name, so I can have a proper structured P&L account because currently I run some expenses from my personal bank and PayPal account and some on his company business bank account.


I will really appreciate any opinion on way to structure my trading..

 

[Scalloway]

You can't rewrite history so the company can only take over the business from the date the company is registered at Companies House.

my turnover will be over VAT threshold in a few months

If you start running the business through a limited company now your company income for VAT registration purposes will be reset to zero.

I can have a proper structured P&L account because currently I run some expenses from my personal bank and PayPal account and some on his company business bank account.

It is not unusual for sole traders to use a variety of sources to pay for business expenses and receive income. You just aggregate them for your self assessment. Your friend's company should send you a bill for the expenses it has incurred.

 

[Tbozz]

You can't rewrite history so the company can only take over the business from the date the company is registered at Companies House.



If you start running the business through a limited company now your company income for VAT registration purposes will be reset to zero.



It is not unusual for sole traders to use a variety of sources to pay for business expenses and receive income. You just aggregate them for your self assessment. Your friend's company should send you a bill for the expenses it has incurred.

I realised that if i register a company, it will take over the business from date of registration, so im just trying to get my tax return sorted as self employed and then register a company......
am i right in thinking this is going to be run like a franchise?? as it will be two individual LTDs trading under one high street name?

 

[Scalloway]

You can use a a trading name as long as you disclose the name of your limited company in all correspondence etc.