Hi,
I have a client who is currently self employed as a joiner, he has changed his trade slightly by producing a new type of Drum (Music Industry) But he has sold a drum before actually incorporating! I have contacted Companies House to see if it is ok to put through the company and have been advised that it is not as it wasn't registered in time! but there are quite a few set up costs that can be put through the limited company. The concern I have is that there are two people going into the company, therefore the net profit would be split etc, partner 2 has injected quite a bit of cash into the set up of the new business, which would be ofset against the sales!
Can any one advise on the best way to do this please
Kind Regards
Andrea
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Replies (2)
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What's the problem?
Why ask C.H.? They don't care one way or the other. HMRC might, but probably wouldn't, care if you included it in the first year's accounts for the company.(Director acting on behalf of company)
Or you could declare it as the joiner's income under Sched D.
Sorry, I don't understand the last para.
The concern I have is that there are two people going into the company, therefore the net profit would be split etc, partner 2 has injected quite a bit of cash into the set up of the new business, which would be ofset against the sales!
Sorry I do not understand
Who has sold the drum? 'He' has sold the drum.
Who pays the tax?
How on earth do you think the company has entered into transactions before it was created?