Will HMRC have a problem with this
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.
- Rental holiday in lieu of repairs 173 2
- Entrepreneur - want to submit accounts by myself 1,208 17
- Mixture of online and offline SA returns 272 5
- What would you do here, potential insolvency. 419 6
- VAT - Medical Staff 167 2
- Vat on construction of residential property 1,126 13
- Really?! 849 10
- CIS 250 5
- Auto enrolment confusion 1,382 26
- Separate companies same Director buy from each other 658 15
- VAT 701/49 query 233 2
- backpack 335 3
- Sage Line 50 Data conversion 196 3
- Bookkeeping question for Finance Lease payments 284 3
- Viewing folder contens en masse 354 8
- HMRC Funding for Employee PAYE refund 200 3
- Tax relief on Enterprise Investment Scheme subscriptions 197 2
- Calculation of 10 year anniversary charge 203 1
- pension contribution annual allowance charge 168 1
- Dominant influence and intercompany loans 259 6
- Self employed and HMRC Worldwide Subsistence Rates 709
- 2015 tax year end 442
- Interest paid - do new rules affect Tax Credits? 418
- Self employed consultant working in Ireland 361
- Costly Accounting Software contract 317
- Directors' advances and credits 262
- Market Invoice (P2P invoice discounting) tax treatment 257
- DTA tie-breaker issue 239
- Tax on internet ad sharing income 224
- Credit against UK NI for NI paid to EEC Countries 204