Being the director of two limited companies and paying myself

[Psc88]

I work as a optician. I have a small optical business of which I am a sole director. (Ltd company)

I was previously employed by another company while I set up this optical business and was earning through PAYE. I didn't take any money out of the optical practice while I was building it up and getting it into a stronger position.

The practice is now supporting itself.
I have recently left my employed position to concentrate on this practice.

I will also be locuming for other practices maybe one or two days a week.

I am contemplating weather I should set up another limited company for my locum consultation work and get my locum work paid Into that as will be lower tax rate.

Question is can I pay myself from my own practice as a locum even though I will be a director of both businesses?

Thanks

 

[Scalloway]

You can pay yourself whatever you want from your companies. Your total pay will taxed at whatever rate is appropriate. In your situation paying yourself dividends may be more tax efficient.

 

[Psc88]

Question is I think it might be easier for me to keep tabs on my locum income if I set up another limited company for my local services rather then get the income paid into my optical business account

 

[john1989]

Why not just have one company and split the revenue streams in the bookkeepibg software?

 

[Psc88]

That is one option but is there any legal implications of having two companies same director and paying from one to the other as consultancy

 

[OldWelshGuy]

The only issue could be VAt thresholds, but I assume you are VAt registered anyhow. you can have as many Ltd' Co's as you like.

 

[CloudAccountantcouk]

I'd say just have the one company and in your accountancy system you can record the different revenue types separately.

The only benefit of having 2 would be if you were to ever sell one of them off it would be easier or if took on a business partner then they would only share in that businesses profit.