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Branching out - how to grow company

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Hi, I'm an IT contractor with a Ltd company. I've got a new gig training people lined up in the short term with a third party, at their site. I'm putting this work through the ltd company because it's very similar to what I normally do, paying day rate etc.

If I were looking to get some space for myself, with the potential for running training there, are these costs something that I can put through the existing ltd company? I've got money in the Ltd company account, and want to use this to fund the space.
Looking further down the line, if I were to branch out into selling teas, snacks, will this be a simple thing to factor in? Are there limits to what I can do in the space and put through the company. Are there changes I would have to make to the company structure if I wanted to hire the space out for more creative purposes, like a photo shoot, or something more unrelated to the IT consultancy side?

Could it be better to create a new company for the space, and let the space to my existing consultancy business, which I can then expense? Alternatively I understand companies could own other companies.
As you can tell I don't know too much about how companies can be operated. I'd appreciate help in understanding my options. Can anyone point me in any directions to read more about how you can set up companies to be the most tax effective, and most flexible?

I have put the question to my accountant, but they specialise in IT contractor accountancy, and the answer I got wasn't very comprehensive.

Again, any help would be much appreciated.

Stu

Comments

  • paddyrg
    paddyrg Posts: 13,543 Forumite
    Ok, so you own all the shares in and are director of a limited company, I presume you set the company up, and so the M&A don't testify your activity (most are boilerplate and won't). In that case, the limited company can absolutely rent a room, sell teas, pay for R&D, buy a bus, whatever. The director can choose the direction of the company, and add long as the shareholders agree, so be it. I think these will both be givens ;+)
  • DKLS
    DKLS Posts: 13,461 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Seems like an additional layer of hassle, I am in a similar situation, and if I don't do the training on client site I usually rent a regis room or similar as then I don't have the fixed costs of a permanent base.

    As for the tea and snacks thing you could sell them, but if you are laying on a days training I would include catering in the costs.
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