Share this content

2 different trades in 1 limited company

Should I use 1 bank account for each trade? How mortgage lenders see multi-trade companies?

Didn't find your answer?

I have a question regarding my future tax planning.

I have been working as sports massage therapist for the last 10 years - Self Employed

I aquired 2 properties that I rent myself as short let (Furnished Holiday Lettings), since 2016

In 2017 I formed a limited company to manage my holiday lettings with the idea of expanding the lettngs business and not working as self employed therapist anymore, however this is not what how things happened. I continue to work as therapist and the lettings at the same time.

I'm now thinking if I should add my therapy business to the same company to make tax slightly more efficient and to make it easier to manage one business/company instead of 2 completely separate.

Do you see advantages and disadvantages in having different trades Sports Massage and Letting of holiday accommodation?

I'm also very interested in continue to buy more properties, but in a limited company as oposed to in my own name.

How mortgage lenders would see such company with completely different trades?

Should I just have 2 limited companies instead? or continue to trade as self employed for the sports business if it has no tax benefit?

Thank you in advance

Replies (7)

Please login or register to join the discussion.

By mrme89
12th Mar 2020 21:43

I agree. Crack on.

Thanks (0)
paddle steamer
By DJKL
12th Mar 2020 22:03

Before I expanded any holiday related business I would pause given the current wider issues, one of the very ar risk industries will likely be holiday letting.

Thanks (0)
avatar
By UMMD
12th Mar 2020 22:16

Thank you for your reply. Do you suggest closing this limited company and opening another just for my therapy business?

Thanks (0)
avatar
By Wanderer
13th Mar 2020 00:49

UMMD wrote:
2 different trades in 1 limited company
Should I use 1 bank account for each trade? How mortgage lenders see multi-trade companies?
UMMD wrote:

I have a question regarding my future tax planning.

I have been working as sports massage therapist for the last 10 years - Self Employed

I aquired 2 properties that I rent myself as short let (Furnished Holiday Lettings), since 2016

In 2017 I formed a limited company to manage my holiday lettings with the idea of expanding the lettngs business and not working as self employed therapist anymore, however this is not what how things happened. I continue to work as therapist and the lettings at the same time.

I'm now thinking if I should add my therapy business to the same company to make tax slightly more efficient and to make it easier to manage one business/company instead of 2 completely separate.

Do you see advantages and disadvantages in having different trades Sports Massage and Letting of holiday accommodation?

I'm also very interested in continue to buy more properties, but in a limited company as oposed to in my own name.

How mortgage lenders would see such company with completely different trades?

Should I just have 2 limited companies instead? or continue to trade as self employed for the sports business if it has no tax benefit?

Thank you in advance

Self employed for ten years, 2 x FHL properties owned personally, FHL properties managed by limited company, combining therapy business into FHL management business, further properties into limited, mortgage lenders???? What does you present accountant suggest?
Thanks (0)
Replying to Wanderer:
avatar
By UMMD
13th Mar 2020 17:45

I'm still waiting for a reply from my current accountant. This set up for failure that I have now is not his fault to be honest, I formed this company with my previous accountant, I said what I intended, but it seems that nothing was planned properly and I didn't have the right advise.

The best will be for me to pay a consultation with a specialist accountant for property, to help me review this mess and set me up in the right direction from now on.

If anyone can point me an accountant who understands furnished holiday lettings I would be grateful.

Thanks (0)
ALISK
By atleastisoundknowledgable...
13th Mar 2020 07:06

“ In 2017 I formed a limited company to manage my holiday lettings ”

Who owns them?

Thanks (0)
avatar
By Truthsayer
13th Mar 2020 09:09

After the first three sentences I stopped reading, as it is clear this is a long and detailed question that only your accountant can answer.

Thanks (1)
Share this content