1 tax or 2 tax bills??

Gcb23

Hi guys has anyone got any info on this..

I'm already a sole trader running a fishing boat & selling my catch doing my yearly self assessment etc..

Now I want set up a limeted company doing something different, but carry on doing my fishing job as a sole trader.

Do I pay 1 tax bill for both put together as I am one person running 2 business? But surely being limeted on one distances it from me & my sole trader business?

Or do I do my self assessment for my fishing & pay the relevant tax for that.. Then do a separate one for the limeted threw an accountant as I read that this is much more complicated?

I gather if I had 2 different business using to bank accounts for each as a sole trader I would join them together & do one assessment combined, but haveing one sole trader business & a limeted I'm not to sure on this?

Also doing this would it maybe save me tax or lose me? Ie would it be Easyer on my tax if I had 2 sole trader business doing separate things?

If anyone's got some info on this that would be great,

Thanks in advance Gary

Savvy_Sue

If you are a sole trader, you do one tax return, regardless of how many 'businesses' you run. But having a limited company does complicate matters: can you say why you're going down that route? If that's essential, then getting proper advice from your accountant would be a good first step.

John_Pierpoint

Yes a limited company is a completely separate legal entity and has to do its own tax return.

Presumably you would be one of the directors of this limited company, that would also mean that you need to understand the tax rules applying for the personal self assessment tax returns of directors.

To get sensible advice, you need to tell us what the limited company intends to do to earn its profits.

Gcb23

Hi guys I'm going down that route because I want to buy in, process, cook & freeze a shellfish product & send it by freight to Korea were its in high demand, In this I will need premises, the equipment, a lorry & loads of other things & maybe if it's needed employ someone depending on how big it gets. Also having a limeted company will give me the professional look that the sole trader company won't give.

At the moment as a sole trader I just sale fish caught by nets to local fish company's & earn a wage. I don't rent a premises as its not needed.

Before going ahead with this I obviously would seek advice from an accountant or something. But wanted to know first of all would it be 2 tax returns one for each company as there different right?

Even tho they are both in the fish sector they are totally different m cheers

John_Pierpoint

At the moment as a sole trader I just sale fish caught by nets to local fish company's & earn a [STRIKE]wage[/STRIKE] profit. I don't rent a premises as its not needed.

One business is part of you as a sole trader, who is also intending to become a company director. (ie just like now but slightly more complicated).

The other is a company with limited liability. It does its own tax return and most likely will need the services of an accountant. [Who will explain the best way of getting profit out of the business in the form of wages and dividends.]

Good luck with your new venture - did you see the documentary about Billingsgate on the TV?

There is a lot more to the international trade in food, than creating a limited company.