diversifying small business to save corporation tax

chipolatta

Hi, Wondering if i had two small businesses such as joinery and sandwich van, could they be ran under the same business and the profit from one go to buying stock materials for the other?
cheers,
Chipper

Jeremy535897

From the heading, I assume that you would be running these two businesses in a company?

You might wish to read this:
https://www.maslins.co.uk/guides/contractor-sideline-business-start-new-company/

chipolatta

Jeremy535897 said:

From the heading, I assume that you would be running these two businesses in a company?

You might wish to read this:
https://www.maslins.co.uk/guides/contractor-sideline-business-start-new-company/

Thanks very much, what an interesting read.  Yes, running 2 businesses in one company, looks good for sharing costs, but looks bad for complicating VAT...

DullGreyGuy

chipolatta said:

Hi, Wondering if i had two small businesses such as joinery and sandwich van, could they be ran under the same business and the profit from one go to buying stock materials for the other?
cheers,
Chipper

Buying stock doesnt reduce your profit;  as a LTD you cant use cash accounting