A client is an architect and trades through a limited company. He is considering an opportunity, which is nothing to do with his skill and trade as an architect, to buy and sell goods and profit on the margin. He does not want to set up another limited company.
I would appreciate thoughts as to why he could or could not trade his new venture through his existing architect company.
Thanks,
Steve
Replies (2)
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losses from the "same trade" spring to mind
wonder if vat has issues about input tax from one trade against another ( a la partial exemption), I'd have to look but someone will be along in a moment I expect.
likewise CT , I wonder, but presumably there will be suitable accounting in any case.
Anthony
Company can do whatever it likes!
You will need to account separately for them such that you can calculate a taxable profit for each. Profits and losses could be offset in the year that they arise but any loss carried forward by either trade could only be offset against profits of that same trade.