Multiple SIC codes for property ltd company

boongywoongy

It's time to file our ltd company annual confirmation.

We've used SIC code 68209 (lettings of own property) as we have an HMO in the company however, the company also purchased a property which it is refurbishing at the moment. Due to market conditions when it's ready, we may either sell property or just let it out.

With this in mind, we are considering adding SIC code 68209 which is most relevant for property flipping.

Furthermore, an acquaintance has got wind of our experience in lettings and wants us to manage the letting of their home as they are moving north and want their current home let out for approximately 1-2 years. Lettings management for others isn't an area that we've ever had any intention of going into but as entrepreneurs, we are not adverse to it since it's very close to what we've done (without any risk to our own capital). The SIC code for this is 68320.

So I was just going to add the latter two SIC codes before filing but after googling around, there are a few articles saying that you shouldn't and should instead restructure the company so that each of these SIC activities are in their own company. Unfortunately, there isn't much detail, so is anybody on here able to give any clues as to why this is a good idea?

For flipping, there is something about losing entrepreneurs tax relief but we are unlikely to close this company any time soon and intend to extract all funds through salary and dividends over future years anyway.

DullGreyGuy

What do you hope to achieve for adding, or not adding, additional SIC codes?

Using DUNS and SIC, a former client's largest customer for Financial Institutes insurance was a green grocers. 

boongywoongy

On this page (https://pro-taxman.co.uk/property-business-what-sic-code-should-i-use-for-my-property-company/), it refers to 

"SIC codes also play a crucial role with lenders/Finance providers – again, these codes let lenders know what activity a property company is going to undertake, and will help lenders assess whether they want to lend to you or not. There are issues however with having multiple property activities running through the same company, and it would be wise to seek professional advice to ensure your company structure is correct and efficient from the outset, with particular consideration to Capital Gain Tax and business property relief."

Savvy_Sue

boongywoongy said:

On this page (https://pro-taxman.co.uk/property-business-what-sic-code-should-i-use-for-my-property-company/), it refers to 

"SIC codes also play a crucial role with lenders/Finance providers – again, these codes let lenders know what activity a property company is going to undertake, and will help lenders assess whether they want to lend to you or not. There are issues however with having multiple property activities running through the same company, and it would be wise to seek professional advice to ensure your company structure is correct and efficient from the outset, with particular consideration to Capital Gain Tax and business property relief."

I refer you to your own post. Speak to your accountant (and if you haven't got one, it sounds as if you need one ...)