Paying contract wages into my limited company help please

cobbingstones

Hi,

I am in the process of setting up a limited company to perform two functions and would like to know if my intentions are legitimate and necessary!

I am in and out of Telecom related contracts. I have been using an umbrella company but understand it is financially more beneficial to go limited. In addition I would like to set up a company to sell, integrate and support network equipment.

Can I use the same company for both functions? They are both telecom related albeit working for different customer areas (i.e contracting will be for the likes of Vodafone etc and the own business will be towards small to medium enterprises). If this way I assume it will be better to register for vat straight away?

Alternatively is it better to keep the separate, especially keeping in mind that the contracting income may put me close to the vat bracket?

Any advice much appreciated

antrobus

cobbingstones wrote: »

Can I use the same company for both functions?

Yes.

cobbingstones wrote: »

I assume it will be better to register for vat straight away?

Alternatively is it better to keep the separate, especially keeping in mind that the contracting income may put me close to the vat bracket?

Any advice much appreciated

Sounds like all your customers will be VAT registered, so they won't care if you charge them VAT. Therefore it would probably be beneficial to you to register in order to be able to reclaim the VAT on your purchases, however small that might be. Running two companies would mean twice the overhead - cheaper to have just the one.