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Help to sort out a muddle?

Help to sort out a muddle?

All thoughts gratefully received on sorting out the following muddle of a newly engaged client who started out as a sole trader and set up a Ltd Company in the autumn:

  1. He has been running the Ltd Co trading through his sole trader bank account
  2. He has continued to trade under the sole trader identity simultaneously, also using the same bank account.
  3.  Ltd Co services vehicles.  Sole trader trade sells reconditioned parts on Ebay.
  4. Ltd Co is VAT registered.  Sole Trader business is not.

My thoughts to deal with this are:

  1. Get business bank account set up for Ltd Co asap.  
  2. Combine trading under Ltd Co from a set date and start charging VAT on the Ebay trade. (from what I can tell through previous posts on the subject the separation of VAT with these businesses is a grey area but highly unlikely to be penalised if we bring them together now.)
  3. Do sole trader accounts for 2011-12.  Make April this year the cut off for trading as sole trader.


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18th Apr 2012 22:10

Seems a sensible start

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