Running two businesses under one name?

money_honey

Hi, I'm just after a bit of advice. Basically I am into photography which I do as a hobby, and recently a few people have asked if I could take paid photos for them. I already own a small Ltd company with my husband doing IT consultancy.
My question is - would I be able to do a photography sideline under my current business, even though it is a different area of work? And if yes, how would it work when it comes to doing tax returns - would I need to do a separate one for the photography side?
Any information would be gratefully received as I am unsure of exactly what I would need to do.

paddyrg

Yes. Ltd company can have sidelines, just give all the details to your accountant at the year-end when they do the tax return. You are probably prudent to keep a separate set of records, but the return will be all-in-one.

Atidi

Refer to your Mems & Arts. Most limited companies have little/no restrictions as to what they may be used for (usually general trading), but your Mems & Arts will specify if there are any restrictions.
If there are restrictions, you can either get your Mems & Arts updated, or just start a new new company (be act as a sole trader)

You'll really should be keeping management accounts that shows how each part of the business is doing (else how will you know?)
But if you do all the business through one limited company, then you will just report one set of figures to CH & HMRC.

Don't forget to update things like insurance, as I doubt the current insurance for IT consultancy will also cover photography.

Also, if the current company is registered for VAT, you may want to think about whether your photograpic customers are willing to pay 20% of your non-vat inclusive price to the tax man.