I would be grateful if anyone can clarify the following:
Can an individual legally trade through their own Ltd company whilst also trading as a sole trader in the same industry?
Effectively billing the majority of trade through their Ltd company and a small minority of trade via a Sole Trader. Technically they operate via two different websites, but i'm not sure whether this is relevant.
I know you're thinking "why would you want to do this"! There is a valid reason.
I would appreciate anyone's insight.
Kind regards
Replies (17)
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Can two separate legal entities carry on similar trades in the same industry? Why would that be a problem? Are either or both of them VAT registered?
What is the point of being in business if the combined turnover isn't even approaching the VAT threshold, given the profits will be less and there would be quite a lot of costs, even more so given the messing about with invoices?
I'm just trying to make the billing system in place bulletproof. Neither are VAT registered.
Providing a bit more insight, it is a business providing subcontractors, so the same subcontractor could potentially be invoiced via the Ltd company for a piece of work and then invoiced by the sole trader business the next week for a separate piece of work. Make sense?
I can see no conceivable reason to run a duplicate Ltd Co and Sole Trader hand in hand. Any particular reason why you still need to be a sole trader?
So now we are getting very close to the nub of it, although I suspect there is more.
If you are winding down the sole trade, only having legacy contracts in place, why is there a need for a website. Surely such things should be shelved, to, if nothing else, dissuade further contact/interest.
But more so, why was the sole trade just not moved into the limited, contracts and all?
Of course it's ok so long as all transactions are at arms length.
It still begs the question Why ?
if they are below vat threshold It Seems hardly worth the bother.
If it's to avoid vat reg. Think again
It looks like an attempt to evade VAT registration (even though it might not be so).
I'm curious about the reasons since it doubles up on almost every cost/activity - two sets of books, two tax returns, two insurances, etc.
What is the valid reason for having two businesses, doing the same thing? Give us a clue I feel there is a piece(s) of info missing. Are both businesses CIS registered if they are providing subcontractors and presumably paying sub contractors? Double insurance, 2 websites. You are right it doesn't make any sense all that duplication for 3k self employed income - so many questions.
Yes you can trade through a limited company and a sole trader in the same trade if that is all there is to it. Why did you think that the client couldn't?
I would be grateful if anyone can clarify the following:
Can an individual legally trade through their own Ltd company whilst also trading as a sole trader in the same industry?
Effectively billing the majority of trade through their Ltd company and a small minority of trade via a Sole Trader. Technically they operate via two different websites, but i'm not sure whether this is relevant.
I know you're thinking "why would you want to do this"! There is a valid reason.
I would appreciate anyone's insight.
Kind regards
Its like pulling teeth. As per.
Wants , presumably relevant answers.
Valid reason for the two entities.
Not divulging that info.
Bizarre.
Are you the accountant or the business owner? If the latter then why wait a year to ask the question?
If the former, why wait a year to ask the question? Unless you are new, in which case what do you mean by sub-contractor? Are they an employment intermediary?
Are they an employment intermediary?
My thought too. (Along with "I bet that's two sets of potential penalties.")