Planned 2022 Purchases

[fred]

I don't see what you mean by individual profit centres/passing cash back and forth. If you take profits out of a LTD company, you pay tax on it.

you pay tax on profit irrespective, moving a debt to a new company isn't the same as taking money out of a company. A decent accountant knows how to work all this. quite common for the assets to be held on 1 comp, trading to happen in another and the risk part of the trading activity to be held in a third.

 

[doobin]

ltd comp can own BTL no problem, not sure where you got that from.

Need to understand the difference between director and shareholder.

Try getting a BTL mortgage without the LTD being an SPV.

 

[pettsy]

Look at Hawk plant when they went under, Split over different limited companies

 

[Lancs Lad]

Funny how often plant hire companies often have plant sale companies under similar names and directors ...

 

[Brendan]

the new VW multivan is open for pre-orders. As its plug in hybrid you can put the lot through the books, claim the VAT, etc still has a low BIK as well.

30 miles on leccy and then its 1.5L unleaded.

My thinking is this gets us into the electric world while still having petrol for long trips while the charging infrastructure is rolled out over the coming years.

By then it will be depreciated down to a pittance on the books, i buy it from the firm for a toffee apple and flog it to a VW van drooler for 5 tonner tokens which i then sell back to the firm for 10 tonner tokens.....

Try 15 miles or less in the cold on pure electric.
Mate had a transporter hybrid as a courtesy van wasn't too impressed.

The hybrids with petrol engines are pointless, the BMW 330e is the same 30 miles max range and from the guy I was speaking to again it's 15 in the cold and mid 20 when warm. Then it's onto the petrol engine. May as well drive a diesel as the mpg will be better.

The biggest problem is the tax incentives the bik tax is so low on the hybrids (I'm sure he was saying the equivalent price against the 330e was something like a focus diesel) so people will jump on them but long term they are worse on fuel and no benefit

 

[Lancs Lad]

Try 15 miles or less in the cold on pure electric.
Mate had a transporter hybrid as a courtesy van wasn't too impressed.

The hybrids with petrol engines are pointless, the BMW 330e is the same 30 miles max range and from the guy I was speaking to again it's 15 in the cold and mid 20 when warm. Then it's onto the petrol engine. May as well drive a diesel as the mpg will be better.

The biggest problem is the tax incentives the bik tax is so low on the hybrids (I'm sure he was saying the equivalent price against the 330e was something like a focus diesel) so people will jump on them but long term they are worse on fuel and no benefit

Your last paragraph...problem? You mean bonus? It's possible to run a new defender 110 for less than a golf on bik ...that's not a problem it's called using dumb pathetic environmental green pish to your advantage. Same as folk driving the new electric Porsches....like they give a s**t about green tish.

 

[Lynchy]

A LTD company cannot own mortgaged residential BTL unless set up as a 'special purpose vehicle'. So this will be why you have a seprate company for that.




As regards Company 1 hiring to Company 2- it's something I've considered. However as the director of both you'd be liable to be sued personally should something dodgy you do cause one company to fail. Usually this would be pointless, as bankrupt company = no assets to sieze. However, if it's obvious that you have the assets in another company, some might be tempted. I still might do it.

I don't see what you mean by individual profit centres/passing cash back and forth. If you take profits out of a LTD company, you pay tax on it. Simple as that, unless you are rich enough to afford a scheme in the Bahamas. Even then, it's not ended well for many high profile cases, with HMRC changing the law and prosecuting retrospectively.

Two companies, different year ends,Co1 end of year has surplus,Co2 presents invoice for surplus amount services rendered etc

 

[doobin]

Two companies, different year ends,Co1 end of year has surplus,Co2 presents invoice for surplus amount services rendered etc

How does that help? You still can’t take money out without paying tax.

 

[hiluxman]

How does that help? You still can’t take money out without paying tax.

It's not about getting it out, it's about moving it around at the right time.

 

[dod]

I am a small company. 5 staff. Just over £1m turnover.
Along way off the larger construction companies round my way but bigger than ur average 1 man band
Sole trader. Make a healthy profit. Have an accountancy fees of £500 a yr as not ltd and have never paid more than 7 grand in tax a year.
If capital allowances were to dissappear then I may have to rethink but as things are currently I can't see any need for being Ltd or multiple companies

 

[Furniss]

I am a small company. 5 staff. Just over £1m turnover.
Along way off the larger construction companies round my way but bigger than ur average 1 man band
Sole trader. Make a healthy profit. Have an accountancy fees of £500 a yr as not ltd and have never paid more than 7 grand in tax a year.
If capital allowances were to dissappear then I may have to rethink but as things are currently I can't see any need for being Ltd or multiple companies

Dont move to France is all I can say .... A one man band doing well will pay multiple times that in tax / social chargés and average accountancy fees approx 2k€ yearly

 

[DaveDCB]

Was speaking to a supplier of mine who had a ‘good’ accountant , until he got investigated by HMRC, turned out on vat alone he owed 50k over the 7 previous years.. Heck knows what I owe, my accountant is shite!

 

[6feetdown]

Was speaking to a supplier of mine who had a ‘good’ accountant , until he got investigated by HMRC, turned out on vat alone he owed 50k over the 7 previous years.. Heck knows what I owe, my accountant is shite!

Delete your post if I were you lol

 

[Lancs Lad]

Delete your post if I were you lol

To late HMRC liked it.
Prob wise to move this to the back room tbf ..
But wtf if your accountant can't sort VAT perhaps time to swap.

 

[TiltyShaun]

I am a small company. 5 staff. Just over £1m turnover.
Along way off the larger construction companies round my way but bigger than ur average 1 man band
Sole trader. Make a healthy profit. Have an accountancy fees of £500 a yr as not ltd and have never paid more than 7 grand in tax a year.
If capital allowances were to dissappear then I may have to rethink but as things are currently I can't see any need for being Ltd or multiple companies

Then you have no understanding of commercial risk and how Ltd liability is used to protect assets. As for tax. You don’t get taxed on turnover. You get taxed on profit. What one would consider to be a healthy profit can make someone else think it is not worth getting out of bed!!

 

[V8Druid]

Then you have no understanding of commercial risk and how Ltd liability is used to protect assets. As for tax. You don’t get taxed on turnover. You get taxed on profit. What one would consider to be a healthy profit can make someone else think it is not worth getting out of bed!!

if you ain't spent it on summat useful (read deductable/allowable) .... looks to me like @dod has got it nailed looking at his selection of kit ..... only need ltd liability if you're concerned about your abilities to maintain profitability ... and a decent bank balance

 

[doobin]

It's not about getting it out, it's about moving it around at the right time.

How does this help you, or any other average small firm?

 

[DaveDCB]

To late HMRC liked it.
Prob wise to move this to the back room tbf ..
But wtf if your accountant can't sort VAT perhaps time to swap.

Tounge in cheek, mine is too far the otherway, no loop holes no cutting corners just old skool pay everything you owe and be done with it..

 

[dod]

Then you have no understanding of commercial risk and how Ltd liability is used to protect assets. As for tax. You don’t get taxed on turnover. You get taxed on profit. What one would consider to be a healthy profit can make someone else think it is not worth getting out of bed!!

I should probably mention I did a 4 yr honours degree in business studies

I more the understand comercial risk but manage it. I'm fully insured against getting sued by customers or clients.
I'm always making sure that we don't go into too deep with 1 customer or 1 job thus spreading the risk. I would say we would have a 1 company every 2 years go bust and due me money.

In a quite old fashioned way I would hate to liquidate a company and be due money or wages though it dosent seem to bother some folk round here.

 

[dod]

Dont move to France is all I can say .... A one man band doing well will pay multiple times that in tax / social chargés and average accountancy fees approx 2k€ yearly

Not necessarily a bad thing. Don't mind how much tax I pay as long as its a level playing field.
When a digger hits 5 year old and say needs new tracks. It's often more financially beneficial to swap it for a new one rather than change to tracks. Madness really. Throw away society.