When I was made redundant in Dec 2011 I set up a limited company with me as sole director and shareholder. I immediately obtained a marketing consultancy which paid the company £20,000 but as time went on, I did not pursue it but left the money in the company bank account for a rainy day. Instead my sister and I began to work together on renovating a house with a view to making it a business. We have lived off our savings but only when I submitted my 2012 SA last week, it dawned on me that I have not managed this very well. In December 2012 I submitted the company annual return without making any changes to directors or SIC. The company tax reference date is 31/03/2013. I have filed the appointment of my sister as director from 1/1/13. I chose this date because it tied in with notifying PAYE that we were new starters and would be taking a salary.
I fear I've messed up
1. Is it okay to use the same limited company for property rental as well as the consultancy (although the consultancy has dried up)? We will soon be ready to let our property but have not seen any income yet.
2. Can we pay ourselves 8k each by 31/3/13, thereby taking our tax free allowance? Corp Tax on rest?
3. Could we make a second filing AP01 with my sister appointed as Director from 6 April 2012 and a second filing AR01 including her as director at end of December 2012. if i'd done it when we started working together I think it would have significantly reduced her Director NICs if spread across the year rather than for 3 months.
4. The plan is that we become equal shareholders but it hasn't been an issue so far because the initial 20k came from my consultancy and she has no expectations of any dividend.
I could kick myself for not dealing with it sooner but I can see why it might look contrived. If it's all in the same tax year might it be acceptable? Do you have any advice as to best handle it?
Thanks for any replies.