Ltd company business activity

luckyluke7 · 20 November 2009 at 5:16PM

I have recently started a Ltd company providing IT services to businesses (sales, technical support, consultancy, etc) this has been going quite well but i used to work in the construction industry before and have been asked if i could assist a company with project managing the new build of a block of flats. My question is will it be ok to invoice through my IT company any work I do that is not IT related? As i remember on the VAT registration forms i had to clearly state my business type and activity and also when i registered my company with companies house. So is it ok for the business to provide services in two very different fields?

COOLTRIKERCHICK · 20 November 2009 at 5:49PM

any income you earn will be subject to vat

luckyluke7 · 20 November 2009 at 5:52PM

I understand that, my question is whether it is ok for my company to do different types of work than it was originally set up for i.e construction related rather than IT related work. Or whether i would need to set up a different company.

fengirl_2 · 20 November 2009 at 7:23PM

It all depends on what the company was set up to do. You need to refer to your Mem and Arts.

cavework · 20 November 2009 at 7:43PM

Maybe stupid here so I will apologise in advance .. but could you not either redefine your business with VAT and Companies house .. or start a sister company?
Would you have to be CIS registered for the new project?
PS I hate the CIS registration mallarky so could be totally wrong.

Rolo_Tomasi · 20 November 2009 at 8:10PM

Companies House will let do have as many standard industry codes as you want - no need to form another company.

The VAT office are only interested in getting the VAT due on invoices (unless you use the flat rate scheme where the % will be different) - but it wouldn't harm matters to let them know that the company now has a division working in a different industry.

The only change I would make is in the accounts you submit to the Revenue. Ask your accountant to produce cost centre detailed P&L reports. This is so the Revenue can clearly see the different income and expenses for each side of the business. This in not a legal requirement but could help remove any confusion and stop an enquiry opening into your accounts.

luckyluke7 · 20 November 2009 at 9:05PM

Rolo_Tomasi wrote: »

Companies House will let do have as many standard industry codes as you want - no need to form another company.

The VAT office are only interested in getting the VAT due on invoices (unless you use the flat rate scheme where the % will be different) - but it wouldn't harm matters to let them know that the company now has a division working in a different industry.

The only change I would make is in the accounts you submit to the Revenue. Ask your accountant to produce cost centre detailed P&L reports. This is so the Revenue can clearly see the different income and expenses for each side of the business. This in not a legal requirement but could help remove any confusion and stop an enquiry opening into your accounts.

Thank you for your detailed reply. Im not on the flat rate scheme so don't need to worry about my business classification for that. I will speak to my accountant and ask her to set up a seperate account/ledger to show income and expenses obtained from other work. Am i right in thinking that if the majority of my income starts to come from construction related activities i should amend my company details to show this as my main business activity?

Ltd company business activity

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