Trading as .........

[Barnie]

need some info on correct etticate for trading with another/second name

i currently own company x and wish to open a webstore as company y

what is best practice when doing so, ie making it visable on the site (company x info and vat number would be applied in the about us and contact us part), but what about invoicing ? do i just add a footer to all my invoices or have to invoice as part of company x


cheers

Barrie

 

[Digital Investments]

I would suggest posting this in the accountancy section - they'll off you some great advice

 

[KateCB]

My company is Karate Kid Limited. I also have oemworld.net, martialdesign.co.uk and accentmas.co.uk. All of them are listed on each website as:

Accentmas.co.uk - a member of the Karate Kid Limited Group
OEMworld.net - a member of the Karate Kid Limited Group
martialdesign.co.uk - a member of the Karate Kid Limited Group

If you are accounting for all sales through the original company and VAT number, then that is all you have to do to identify that company Y is a member of company X and that the VAT number used is legal and current.

 

[Anna Chandley]

Do you trade via a limited company or as a sole trader?

 

[Barnie]

yes currently a sole trader, however next year may change over.

Kate, thats the plan to use the original vat number, dont have a company number due to being ltd

would be keeping the same bank account etc.

 

[KateCB]

Even if you are a sole trade, you could be Barnies Bears as company X, and "Barnies Bulldozers - a subsiduary of Barnies bears" showing on your website, as technically they are the same financially, all money for both will go into and come out of the same bank account, the VAT will be paid on sales from both Company X and Y, so its easy.

Essentially you are ONE company, with a diffferent name for a different product - ie bears abd bulldozers. You don't have to be a Limited company, just remember to also show your VAT registration number on the website.

 

[Anna Chandley]

As a sole trader you would automatically have to use the same VAT number as it is you, as the sole trader, who is VAT registered no matter how many separate sole trader businesses you run.

 

[Anna Chandley]

My company is Karate Kid Limited. I also have oemworld.net, martialdesign.co.uk and accentmas.co.uk. All of them are listed on each website as:

Accentmas.co.uk - a member of the Karate Kid Limited Group
OEMworld.net - a member of the Karate Kid Limited Group
martialdesign.co.uk - a member of the Karate Kid Limited Group

If you are accounting for all sales through the original company and VAT number, then that is all you have to do to identify that company Y is a member of company X and that the VAT number used is legal and current.

Kate

Do you just have the one limited company with a number of trading names or do you have a number of Ltd companies within a group?

If it is the former then you shouldn't refer to any of the trading names as being a member of a group instead you should state that they are trading names of Karate Kid Ltd.

 

[Curious]

We were recently adviced to say 'Company A is a division of Company B' when doing as you're doing.

 

[KateCB]

I'll take that on board and ask the question again, however we were advised by Companies House and HMRC that as each one traded financially through the one limited company, the 'a member of the karate kid Ltd group' was the term to use, as we had a 'group of trading names' all belonging to Karate Kid Ltd!

I will put your points to HMRC again though and see what they say - easy enough to change the wording if they change their minds!

Out of interest, can you tell me what the difference is - division/group?

 

[Anna Chandley]

Hi Kate

The word "group" is on the list of sensitive words in "The Company, Limited Liability Partnership and Business Names (Sensitive Words and Expressions) Regulations 2009" and can only be used if you are a group.

I wouldn't bother checking anything to do with company law with HMRC just go straight to Companies House.

To answer the group vs division question, a group would be a number of separate ltd companies owned by a holding company whereas a single Ltd company may be split into several divisions.