Can my small my business diversify to do totally different things?

JDX_John · Apr 16, 2025

I have a long-running Ltd in good standing, through which I provide consultancy services. I'm the sole director and there are no employees.
There are one or two side projects I am considering that are in totally different fields, and I don't want the paperwork/cost of running multiple companies. The company also has significant cash reserves which I would like to invest.

Online research says you can "run multiple businesses through the same company using trading names" but I thought you had to define quite strictly what your company does with Companies House.

So let's say JDX Ltd currently provides software consultancy, but wishes to sell my new range of jewellery and operate an AirBnb. I don't really care about trading names, can it do this or could I run into issues? What do I need to read up on/google?

ChrisCallaghan · Apr 16, 2025

Hi @JDX_John ,

I'm sure someone will be along shortly to give you a confirmed answer, but I think all you need to do is add SIC codes for your additional services through filing a Confirmation Statement at Companies House.

Other than that, you can provide as many services under as many brands as you like through your company. As you've pointed out, saves on the paperwork/costs of multiple companies, but it may be worth having a chat with your accountant about whether they'd be any tax benefit to having separate companies for these different businesses. For example, is your current business VAT registered? If not, would the additional revenue from the new ventures push your company's turnover past VAT threshold?

fisicx · Apr 16, 2025

Or just run your side hustle outside the limited company.

Frank the Insurance guy · Apr 16, 2025

Hi @JDX_John , You need to consider the impact on your Business Insurances. Most Insurers like to pigeon hole you into this or that category. If you have vastly different business activities, you may find you will struggle to get an insurers that will provide cover for both sides of the business.

You also need to consider that an issue with one side of the business will impact the other.

Although you can carry out any number of trades under the single company, we would usually recommend a separate company for each trade.

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Can my small my business diversify to do totally different things?

JDX_John

ChrisCallaghan

fisicx

Frank the Insurance guy

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