Ltd Holding Company vs Individual

[adejones]

Morning all,

I know this has been asked before as I have searched and found this useful thread - https://www.ukbusinessforums.co.uk/threads/is-one-company-better-than-multiple.428830/ - but I wanted some clarification as some of the replies confused me further.

I am currently self employed and VAT registered, I provide web services as one business, turnover approx £95-100k, I also provide web services as a second business, turnover approx. £20-25k, I provide crafted products as a third business, lower turnover, and will soon be starting in the hospitality industry with a 4th business, hoping for a starting turnover of £20-30k.

Business 1 is all paid in to one business account, all other income in to another, accounts done myself on Sage and a single self-assessment done annually.

Following a house purchase that i'd like to protect, I have been considering creating a limited holding company with 100% shares in all sub-companies, register all 4 sub-companies as limited companies, still have one set of accounts and one tax return, one vat registration, but a separate business account for each and draw a salary from the holding company (which I believe I can withdraw from any of the 4 accounts as all monies are owned by the holding).

With this scenario, considering all businesses are in different sectors, should I continue to keep them separate or look at this route above? Any advice welcome.

Thanks in advance.

 

[Lisa Thomas]

Do you have an accountant? If so this is definitely a question for them. If not, and you don't find one on here, I can recommend someone for you. Feel free to DM me.

 

[Newchodge]

You could have 1 limited company and 4 trading names. One bank account, One VAT account, One set of accounts. If you have 4 ltd companies each will need their own accounts and VAT accounts.

 

[Ozzy]

Speaking as someone who did go down the holding (investment holdings) group company route in the past, I would urge caution as the management overhead just isn't worth it unless you're dealing in multi-millions - and even then I'd suggest high multi-millions.

Just seen @Newchodge reply which I'd endorse, but ultimately I would very much encourage you to sit down with an accountant / tax adviser who is experienced in multiple business groups and take their advice and guidance.

On face value though and for the numbers you're quoting, I'd put it all in just one Limited Company but perhaps hold the property in your personal name (assuming it's an investment purchase). Nonetheless, do ignore what I'm saying and take specialist paid advice on this sort of thing and take the advice here on this as just opinions.

 

[WaveJumper]

Agree with the above comments re you need to sit down with an accountant, multi ltd's mean multi costs. Regarding house purchase sounds like you have already jumped the gun

 

[DontAsk]

Following a house purchase that i'd like to protect,

To clarify, do you mean personal purchase and you want to gain protection by switching to Ltd? Good idea in principle, just don't sign any personal guarantees if you borrow for the company, as a Ltd will not protect you from those.

Some replies seem to be assuming it's somehow related to the business.