Sister and I plan to start an online craft store. Questions on starting, tax, and registration...

MadRatters

okay so we are registered as a limited company, but not registered as VAT,

the start up costs has been around £75.00 purely for registration via a company who offered us to set up with a privacy address etc and can handle the accountant stuff, Persons of Significant control registration for me, webstore and an online collab workspace for both of us to use since we don't live together.

We already had the crafting stuff already and my sister already made some stickers etc so we didn't have to buy anything.  

DullGreyGuy

MadRatters said:

okay so we are registered as a limited company, but not registered as VAT,

the start up costs has been around £75.00 purely for registration via a company who offered us to set up with a privacy address etc and can handle the accountant stuff, Persons of Significant control registration for me, webstore and an online collab workspace for both of us to use since we don't live together.

We already had the crafting stuff already and my sister already made some stickers etc so we didn't have to buy anything.  

You need to remember a few facts then...

The Ltd is a legal entity in its own right, it owns things, pays taxes etc separate to you. You can gift it things if you want, but it cannot gift you things (generally speaking). You cannot mix up what's yours and its. 

An Ltd cannot use cash accounting basis... accrual accounting is neither bad nor that complex but many get confused when they buy stock you can't deduct that spend from your profits.

tightauldgit

MadRatters said:

okay so we are registered as a limited company, but not registered as VAT,

the start up costs has been around £75.00 purely for registration via a company who offered us to set up with a privacy address etc and can handle the accountant stuff, Persons of Significant control registration for me, webstore and an online collab workspace for both of us to use since we don't live together.

We already had the crafting stuff already and my sister already made some stickers etc so we didn't have to buy anything.  

If you are planning to sell stuff you already have through the Ltd company then you will need to transfer ownership of that stuff to the Ltd company somehow I believe. Probably best ask an accountant on that one. 

Could possibly be as simple as the company buying it from yourself as needed but then you would have a personal income as well resulting from the company buying things from you. I don't have a good grasp on the ins and outs of that - one of the reasons I never actually traded my limited company and just stuck as a sole trader was not wanting the hassle of transferring over assets. 

Marcon

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