Sole Trader and Director?

[wilfredw]

Is it allowed to run say Company 1 as a sole trader and company 2 as a limited company? Are there tax or legal implications? Both companies do seperate things.


Wilfred

 

[Alpha]

The short answer is yes there is no problem.

there are always tax and legal implications but not many due to running both.

The straightforward tax implication is that taxable profits in the sole trader business will need to be taken into account in producing any policy on dividends/salary.

 

[dcaccounting]

When you say "is it allowed" I take it that your not currently doing this?

Yes, as Alpha says you can do both but there are legal obligations in running a Ltd company as you are no doubt aware?

There would be tax implications to your sole tradership depending on the profitability of the company and level of dividends payable to you.

Regards

Dean