Merge two businesses advice

Need advise on merging sole trader practice into limited company

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Hello - Need advisory!

We have been running a home based very small 'sole trader' accounting practice in my own name for over a year now, where spouse was sharing the work. However, recently in Dec-2016, I formed a new limited company to provide business advisory and management consultancy being me as a single director and engaged solely. I am thinking to merge now my Accounting sole trader business into my limited company and operate them as a single entity also appointing spouse as a 50% director.  Any suggestion if it's a good idea or pitfalls? My limited company is FRS (13% first year) and my sole trader is standard 20% (Although I do not mind since FRS is changing anyways!) - Currently spouse is parttime employed elsewhere and earning in 20% band and my own expected in 2017/18 including director div+sole trader may together go in 40% - Appreciate comments

Replies (5)

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By Ruddles
25th Feb 2017 22:55

If you're running an accountancy practice, you really shouldn't need to ask those questions.

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By mrme89
26th Feb 2017 09:16

Before having answers on a plate, have you considered doing some research?

Your question appears incredibly lazy. Sorry.

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boxfile
By spilly
26th Feb 2017 07:34

Just a thought - if you can't advise yourself about your business, how are you able to advise others on theirs?
This is a pretty basic scenario and just needs working through logically. I am concerned that if you can't manage that, you are in the wrong job.

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By practiceperson
26th Feb 2017 13:18

You need to go through the figure to see which is most tax efficient. I'm susprised clients havent asked for this advice already so it would be good practice to do it for your situation.
work through the calc. include your salary and your wife in the Company calc. work out the divi tax. compare it to the A/E calc. Use salary in the Company at 11k for you and wife [depending on her other income] which is £885 a month net. make sure your wife actually does some work for the company
assets can be transfered at TWDV from sole trade to company as its connected.
just crunch the numbers.

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By Matrix
26th Feb 2017 16:00

I no longer provide advice on anonymous threads out of principle. If you really don't have any pride and need help on this then 1) do not post anonymously and 2) learn how to spell advice.

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