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Dividends contribute to turnover? Sole Trader.

Sole Trader with my main business, plus a shareholder in a separate LTD company.

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Hello

Im a self employed landscape gardener (sole trader.)  In addition to this I have recently purchased some shares in a totally separate limited company, hopefully the profits next year will allow us all to take dividends, with mine hopefully being around the 10k mark.

My question is - does this contribute towards my Turnover threshold of my self employed landscaping business, or can I still turnover 84.99k with that business, plus take a 10k dividend in the company Im a shareholder in and still not have to be VAT registered?

Many Thanks

Replies (31)

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By Sandnickel
06th Nov 2019 12:05

Dividends will not count towards the VAT threshold, they will be declared on your self assessment as income.

Thanks (1)
Oaklea
By Chris.Mann
06th Nov 2019 12:07

No, the dividend income will not form part of your business turnover.

Thanks (1)
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By JDBENJAMIN
06th Nov 2019 12:26

Ask your accountant these questions. Don't leech on us.

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Replying to JDBENJAMIN:
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By Grass Clipper 22
06th Nov 2019 15:49

Now then Benjamin

I don't have an accountant, I do my own self assessment at the end of the tax year. Reason being my business is pretty straight forward. Now I have purchased these shares and will be getting dividends I may look at getting one.

Thanks for your helpful reply anyway.

Looking at most of your replies to peoples questions, the blunt answer you gave to me seems to be one of your favourites.

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Replying to Grass Clipper 22:
panda ketteringUK
By ketteringUK
06th Nov 2019 16:31

Why won't you ask Quickbooks or whatever software you keep your primary books on. Call HMRC or Santa. We don't have mug written on our foreheads . My advise (FOC): Just go away and do not comeback!

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Replying to ketteringUK:
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By Grass Clipper 22
06th Nov 2019 19:43

Why did you choose to reply then? If your so busy doing whatever your doing, how do you find the time to reply to my question when I've already had a handful of helpful replies from other users? My question was very simple. A Yes or No answer sufficed.

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Replying to Grass Clipper 22:
panda ketteringUK
By ketteringUK
06th Nov 2019 22:17

Answer is NO mister.

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Replying to ketteringUK:
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By Grass Clipper 22
07th Nov 2019 09:44

Yeh, a couple of people had told me that before you piped up.

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Replying to Grass Clipper 22:
RLI
By lionofludesch
06th Nov 2019 17:36

Grass Clipper 22 wrote:

Now then Benjamin

I don't have an accountant, I do my own self assessment at the end of the tax year. Reason being my business is pretty straight forward. Now I have purchased these shares and will be getting dividends I may look at getting one.

That's a good idea because you may have already made errors of which you are unaware.

Thanks (1)
Replying to Grass Clipper 22:
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By Accountant A
06th Nov 2019 18:35

Grass Clipper 22 wrote:

Looking at most of your replies to peoples questions, the blunt answer you gave to me seems to be one of your favourites.

That's because it's relevant to everyone who comes on here asking for free advice while saying, at the same time, that they do their own tax because it's so easy. Basically, you don't know what you don't know. I know **** all about gardening/landscaping and would probably make a complete disaster if I did it myself. The difference is, if I mess up my garden, I have a messed up garden. If you mess up your tax, it will cost you money - almost certainly more than it would cost you to engage an accountant.

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Replying to Grass Clipper 22:
RLI
By lionofludesch
06th Nov 2019 18:42

Grass Clipper 22 wrote:

Looking at most of your replies to peoples questions, the blunt answer you gave to me seems to be one of your favourites.

I'd notice if I had a bad garden. Would you notice if you had a bad tax return ?

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Replying to lionofludesch:
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By Grass Clipper 22
06th Nov 2019 20:00

I know how much money comes in, and how much my expenses are, so I have a good idea at what the profit should be.

My Tax circumstances are about as simple as that at the moment, but now I have purchased these shares it probably is time to engage a decent, helpful accountant.

Does anyone know of one?

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Replying to Grass Clipper 22:
panda ketteringUK
By ketteringUK
06th Nov 2019 22:22

i know one but they're busy landscaping now!

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Replying to ketteringUK:
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By Grass Clipper 22
07th Nov 2019 09:46

ha! good gag, good gag.

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Replying to Grass Clipper 22:
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By Accountant A
06th Nov 2019 23:03

Grass Clipper 22 wrote:

My Tax circumstances are about as simple as that at the moment, but now I have purchased these shares it probably is time to engage a decent, helpful accountant.

Does anyone know of one?

Who did the Due Diligence for your share acquisition? Who valued the shares for you? Who drafted the Shareholder Agreement that you entered into?

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Replying to Accountant A:
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By Grass Clipper 22
07th Nov 2019 09:54

The accountancy firm that manages the limited the company in question. I forgot to mention at the time, and don't really know them well enough to pick up the phone and speak to them - its quite a large outfit.

But fortunately I got my answer from a couple of nice chaps on here.

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Replying to Grass Clipper 22:
RLI
By lionofludesch
07th Nov 2019 09:59

Grass Clipper 22 wrote:

The accountancy firm that manages the limited the company in question.

You didn't think there may have been a conflict of interest there ?

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Replying to Grass Clipper 22:
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By Accountant A
07th Nov 2019 11:18

Grass Clipper 22 wrote:

The accountancy firm that manages the limited the company in question. I forgot to mention at the time, and don't really know them well enough to pick up the phone and speak to them - its quite a large outfit.

But fortunately I got my answer from a couple of nice chaps on here.

As lionofludesch points out, the "accountancy firm that manages the limited the company" could not ethically give you advice on making an investment in a company that is their client. Either they didn't, and you don't understand the points I was raising, or you have been stitched up like a kipper.

How much did you part with for this "investment" that will be paying £10,000 pa dividends, guaranteed, indefinitely?

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Replying to Grass Clipper 22:
RLI
By lionofludesch
07th Nov 2019 09:56

Grass Clipper 22 wrote:

I know how much money comes in, and how much my expenses are, so I have a good idea at what the profit should be.

Creditors, debtors, stock, fixed assets, depreciation ?

Or are you working on the cash basis ? Which is a discussion in itself ........

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Replying to lionofludesch:
Caroline
By accountantccole
07th Nov 2019 11:36

I always wonder what % of DIYers get their capital allowances right, restriction of allowances if their profits are low etc.
I failed with most of the things I tried to grow in the garden this year......if I ever want it to look nice I will get someone in!

Thanks (1)
Replying to accountantccole:
RLI
By lionofludesch
07th Nov 2019 13:36

accountantccole wrote:

I always wonder what % of DIYers get their capital allowances right, restriction of allowances if their profits are low etc.

It's 6.4%.

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Replying to lionofludesch:
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By The Dullard
07th Nov 2019 13:59

Isn't that the 2017 figure?

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Replying to accountantccole:
paddle steamer
By DJKL
07th Nov 2019 14:54

Spuds in bags, hard to mess up, same with rhubarb. Garlic also not that tricky and things like pak choi is simple providing you are prepared for the slug/snail war of attrition (raised beds, copper strips, broken eggshells etc)

Absentee crops once established also work, I have some cherry trees abroad , I do nothing re these trees (they are now very big) , birds get the top fruit we pick the bottom fruit.

Gardening, nay in my case landscaping (building paths/walls/fences etc) ,even badly done (as my garden tends to be- currently looks a tad like The Somme) should be embraced as therapy from accountancy- get someone who knows a bit (used to be my dad) to tell you what to plant where and that tends to be half the battle.

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Replying to DJKL:
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By Grass Clipper 22
07th Nov 2019 14:46

What the [***] are you rabbiting on about?

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Replying to Grass Clipper 22:
paddle steamer
By DJKL
07th Nov 2019 14:53

I am talking to the person I actually addressed in my post concerning their earlier post about gardening difficulties, is that a problem to you?

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paddle steamer
By DJKL
06th Nov 2019 12:30

As a secondary question, is the company doing similar activities to your sole trade activities, if it is chatting with an accountant might be a good idea?

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Replying to DJKL:
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By Grass Clipper 22
06th Nov 2019 15:51

Hi there

No the company is quarrying sand, where as I am a landscaper.

Thanks for your help.

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Replying to Grass Clipper 22:
paddle steamer
By DJKL
06th Nov 2019 17:29

That sounds okay, I was considering vat aggregation which would be quite apt given the sand quarrying.(aggregates)

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By Grass Clipper 22
07th Nov 2019 13:22

Thanks all for the help. Ill be sure to check back here if I've got any other questions.

Have a great day!

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Replying to Grass Clipper 22:
Lone Wolf
By Lone_Wolf
07th Nov 2019 14:24

Lolz

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By Tax Dragon
07th Nov 2019 14:56

Are the shares on the balance sheet?

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