Contracting and my company

Livingmybestlife

I'm shortly going to become a contracor with a Ltd company, after being a permanent employer with various companies over the years. I also will have my own side business, possibly with my husband as a named person in the company. For the contracting, I know I will have to register myself as a company as I won't be going the umbrella route, but my question is does it make sense to set up two individual buinesses to seperate the two? Or is it easier to keep the same company name for both?
My contracting job will be 'my money' so to speak and the side business will be income split/for the family.
What are the tax implications for this?

Thanks
LMBL

System

I would keep them separate. It allows more flexibility in terms of cash extraction as your contractor LTD company should only have you as a director for the purposes of easy dividend extraction. It is possible to have two owners receive different dividends but it sets you up for other issues.

Also, better to keep any potential liability separate for the two businesses. Depending on which industry you are in, it may just be a case that you are specifically asked to contract through a Ltd company set up solely for the purposes of you delivery your service. I contract in finance and that is the case for me.

Livingmybestlife

Thank you Walcott.

I will be in the commercial property development industry and yes contracting only for that purpose.

LMBL

Livingmybestlife

Bumping for any other opinions

Savvy_Sue

Nothing anyone says here will trump a recommendation from your own accountant.

Livingmybestlife

@sue, oh defintely! But I would still like to hear personal experiences and advice too

Pennywise

Livingmybestlife wrote: »

@sue, oh defintely! But I would still like to hear personal experiences and advice too

Everyone has different views and experiences. A qualified accountant will help you decide the true pros and cons of using separate companies. I've got clients doing the same, some have separate companies, some use the same company - it depends on your individual circumstances, plans, relative incomes, risk of loss in one, overall business risks of both, etc etc. There is no generic answer.

Livingmybestlife

@penny that makes perfect sense. What you've said at least gives me a starting point on the various factors to take into consideration before approaching an accountant for professional advice.

richardw

What’s the forecast impact of IR35 for you?

Livingmybestlife

I believe I will be outside of IR35 as I won't be working for the public sector?

Dox

Livingmybestlife wrote: »

I believe I will be outside of IR35 as I won't be working for the public sector?

Not so. IR35 isn't anything to do with whether or not you work for the public sector.

Go and see an accountant and get a qualified answer based on all the facts - vague opinions based on 'personal experience' are really not very helpful or even relevant without knowing the full picture.