All thoughts gratefully received on sorting out the following muddle of a newly engaged client who started out as a sole trader and set up a Ltd Company in the autumn:
- He has been running the Ltd Co trading through his sole trader bank account
- He has continued to trade under the sole trader identity simultaneously, also using the same bank account.
- Ltd Co services vehicles. Sole trader trade sells reconditioned parts on Ebay.
- Ltd Co is VAT registered. Sole Trader business is not.
My thoughts to deal with this are:
- Get business bank account set up for Ltd Co asap.
- Combine trading under Ltd Co from a set date and start charging VAT on the Ebay trade. (from what I can tell through previous posts on the subject the separation of VAT with these businesses is a grey area but highly unlikely to be penalised if we bring them together now.)
- Do sole trader accounts for 2011-12. Make April this year the cut off for trading as sole trader.