Using one company fund at start another

How to draw efficiently draw funds to startup another seperate ltd company

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Hi Everyone!

Just wanted to get your guys opinion before i go see my accountant.

I have had a decent year so far and am looking to have a surplus of around £200kof the back of a large contract we have completed.

Myself and Business partner would like to draw 100k each to start 2 seperate ltd companies renting out propertys.

What would be the most efficient way to do this, i would like to not go the loan route as i ideally want full independance from the initial company.

Any info would be much appreciated.

Thanks

Replies (24)

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By johngroganjga
29th Apr 2021 16:49

Why do you want opinions from strangers who know nothing about you, before you have got one from your own accountant?

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Replying to johngroganjga:
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By puss
29th Apr 2021 16:55

Hi thanks for the reply...

Its a forum on accounting, its literally made up of strangers who want to discuss accounting?!

I'm not sure why would you take the time to reply in such a way?
it isnt very constructive and seems a waste of your time if you do not want to contribute?

That being said, in answer to your question, i have a few differnt accountants for my differnet businesses, often they have different views on certains things and i would like some independent input before i speak with them.

Thanks.

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Replying to puss:
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By Paul Crowley
29th Apr 2021 17:20

John
Thanks 4977
Respected contributor

You
Just joined
Still do not understand basic rules
Lurk before you post

Not loans
Then it is dividends. Dead simple
Or kill the company with the money

Properties inside companies
This has been answered 20+ times in the last year

https://www.accountingweb.co.uk/any-answers/how-to-use-any-answers
Good idea to read the rules before going off on one

BTW
Be credible
A few accountants
Seems that you do not trust any of them
An accountant needs the full story if he is going to be any use
Assumed you want to put properties into a company because you tube has just so many videos saying it is a good idea
Two comments
Consider Exit
Consider IHT

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Replying to Paul Crowley:
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By puss
29th Apr 2021 17:18

Not really going off on one, it's obviously im new here, i asked a genuine question and the response was uncalled for. It would have literally been easier to answer or do nothing but he choose to talk down to me.

The sign of a insecure person.

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Replying to puss:
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By Wanderer
29th Apr 2021 17:22

puss wrote:

The sign of a insecure person.

A sign of a passive aggressive person.
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Replying to Wanderer:
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By mumpin
29th Apr 2021 18:57

@Wanderer
You aren't meant to say Passive Aggresive anymore because it supposedly tells you more about the labeller than the labelled.
The argument essentially is that control freaks call people who won't do what they say Passive Aggresive.
We are all eagerly awaiting the invention of a synonym without a fallout that infects the denouncer.
In the meantime you might say something like "My old Dad would have called you passive aggresive", thus showing that you are hip with the kids.
HTH

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Replying to mumpin:
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By Wanderer
29th Apr 2021 19:07

Ah thanks Mumpin.

I'm sure you are right.

I must try harder to get my control freakiness under control ................. ahh there I go again!

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Replying to Wanderer:
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By Hugo Fair
29th Apr 2021 20:23

I'd hold on to the control freakiness ... it's got to be better than Alien hand syndrome (or Dr. Strangelove syndrome as it's sometimes known). ) :

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Replying to mumpin:
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By Hugo Fair
29th Apr 2021 20:43

"The argument essentially is that control freaks call people who won't do what they say Passive Aggressive."
That's a neat piece of high-jacking presumably originated by a passive aggressor. FWIW my (long-winded alternative) would be "exhibiting Marie Antoinette tendencies."

Anyway, in the hope that the intention was humorous, its logic is almost on a par with my favourite entry in a dictionary:
* Recursive ... see recursive

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Replying to Hugo Fair:
Stepurhan
By stepurhan
30th Apr 2021 08:47

Hugo Fair wrote:
"exhibiting Marie Antoinette tendencies."

Lacking a head? In favour of cake?
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Replying to stepurhan:
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By Hugo Fair
30th Apr 2021 12:43

OED definition of passive-aggressive:
"of or denoting a type of behaviour or personality characterized by indirect resistance to the demands of others and an avoidance of direct confrontation"

Marie Antoinette's reputed response, upon being told that her starving peasant subjects had no bread, of "Then let them eat cake" ... seemed to be a reasonable exemplar (given the edict not to use the original phrase)?

Although I take your point that a state of headlessness is also apposite.

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Replying to Hugo Fair:
Stepurhan
By stepurhan
30th Apr 2021 15:46

Thanks for the explanation. Clear and well-articulated.

Also a stark reminder to me that I should include a smiley face to indicate when I am joking. :-)

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Replying to stepurhan:
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By Hugo Fair
30th Apr 2021 15:57

Likewise.
I'm not a regular user of emoticons (sounds like a confession), so I also forget to apply the more laborious character-based smiley ... which should've appeared at end of my last post above.
Ah well ... I'm reminded of an old girlfriend (or rather a very young girlfriend a long time ago) who had a habit of inserting '(joke!!)' at the end of almost every sentence in her daily letters - remember those?

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Replying to puss:
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By Paul Crowley
29th Apr 2021 17:23

Exit time for me
You are unlikely to get much sympathy for your views on this platform
As they say on Dragon's Den
Wish you well, but I'm out

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Replying to puss:
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By Tax Dragon
29th Apr 2021 17:27

Ironically, John asked you a genuine question (not talking down to you at all)* and your response to it was uncalled for.

* Thinking he was is the real sign of an insecure person.

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Replying to Tax Dragon:
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By Paul Crowley
29th Apr 2021 17:34

John did get it wrong
He did not know that OP has a few accountants.
Best way forward now would be to invite them all to a meal out at OP's largesse and bring up the subject once they have had few wines and then listen to the whines

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Replying to puss:
A Putey FACA
By Arthur Putey
29th Apr 2021 17:29

Isn't that what you get pay professional advisers for, their superiority? Seems you are seeking it for free here, prohably from one of your many existing accountants!

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Replying to puss:
RLI
By lionofludesch
29th Apr 2021 23:20

puss wrote:

Not really going off on one, it's obviously im new here, i asked a genuine question and the response was uncalled for. It would have literally been easier to answer or do nothing but he choose to talk down to me.

The sign of a insecure person.

Underneath that uncalled for answer is great advice if only you could see it.

You don't seem short of a bob or two. Spend some of it on getting advice tailored to your personal situation.

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Replying to Paul Crowley:
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By puss
29th Apr 2021 17:50

The reason for more than one accountant is that each entiy has different co directors, its not a trust issue, i've have simply found that diffent accountants have different interpretations on some things.

This will be my last post here ...honestly some of the other responses here are pretty unprofessional and does border on embaressing.

I'm sure ill figure out what to do with the money, Its a good problem to have after all...

Enjoy being accountants everyone and have a wonderful day.

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Replying to puss:
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By paul.benny
29th Apr 2021 18:05

puss wrote:
...some of the other responses here are pretty unprofessional and does border on embaressing.

Presumably you're referring to all the responses containing typos?

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Replying to puss:
Stepurhan
By stepurhan
30th Apr 2021 08:52

puss wrote:
i've have simply found that diffent accountants have different interpretations on some things.


Then you are almost certainly getting a variety of mediocre to poor advice. Not because the advisers are poor, but because anyone without the full picture will not be able to give good advice.

But hey, at least you can feel superior to them as you pay more tax and store up problems for the future.

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Replying to puss:
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By paul.benny
29th Apr 2021 17:59

puss wrote:
...i have a few differnt accountants for my differnet businesses, often they have different views on certains things

I dare say they do have different views on who H is line Line of Duty or how many trophies City will win this season. Assuming you actually mean finance here, I don't know why you've chosen to have different accountants for your different businesses. The downside of it is that each only has a partial picture of your affairs - and that results in different advice. And they may also focus on different facets of the subject depending on how you frame the question.

If you want to play advisers off against each other, I'm also out.

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paddle steamer
By DJKL
29th Apr 2021 19:38

Pensions are a possible avenue though doubt you have the critical mass to be cost efficient and it would need to be commercial property, but there are lots of other routes all with costs/benefits to consider.

There are lots of questions to be asked here , BPR,BADR, family circumstances, will existing business continue etc, consulting an accountant is essential, he/she gets full picture and offers routes, each with its pros and its cons.

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By bernard michael
30th Apr 2021 10:12

Do you want to keep the original company?? If not liquidate it
Are there positive reserves in the company ?? If so take dividends
Does the company owe you money ( directors loan a/c)?? That can be taken tax free
Take a large taxable bonus

Is the £200000 net after Corporation Tax ?? If not reconsider your position /alternatives

That about sums it up

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