Creating association between 2 limited companies?

Little_Missy · 28 January 2014 at 6:21PM

Hi all,

I have a limited company and am planning to set up another. I am the sole director and sole shareholder of the existing company and this will also be the situation for the new company.

My query is - Will this cause an association between the two companies (e.g. for taxation purposes)?

Thanks in advance!

Aquamania · 28 January 2014 at 7:48PM

Little_Missy wrote: »

Hi all,

I have a limited company and am planning to set up another. I am the sole director and sole shareholder of the existing company and this will also be the situation for the new company.

My query is - Will this cause an association between the two companies (e.g. for taxation purposes)?

Thanks in advance!

No .

Little_Missy · 28 January 2014 at 8:01PM

Aquamania wrote: »

No .

Hi Aquamania,

You sound very sure!......Thanks

When would the situation of creating an association by being in control of both companies occur then?

Savvy_Sue · 28 January 2014 at 8:48PM

I think - but I might be quite wrong, and I'd suggest taking advice from your own accountant - that HMRC might wish to link the two if one or the other of your companies was nearing the limit for VAT registration, and you appeared to be keeping them separate in order to avoid VAT registration.

Savvy_Sue · 28 January 2014 at 8:51PM

Having found your other thread, I'm going to lock this one because I think we'll cover all the issues there.

Creating association between 2 limited companies?

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