'Trading As' ...
Discussion
Birkin1932 said:
I have one limited company with 6 different 'trading as' trademarked brands, all have their own dedicated websites, all money gets paid into that 'trading as' dedicated bank account and once a week it all gets 'brushed' into the Limited Co.
Easy peasy
This is exactly what I want to do - but without the each brand having it's own bank account. Could you not do the excat same but just have everyone pay into the LTD account direct? What is the purpose of have the seperate accounts in the first place? Purely for the look? Or admin?Easy peasy
Hi Eric, I leave the technical stuff to Grant Thornton, but everything is owned and purchased by the Ltd Co, websites, buildings, machinery, trademarks etc etc. So its one company with multiple brands, all bank accounts are sub-accounts of the Ltd.
I am very surprised you haven't come across this before to be honest
I am very surprised you haven't come across this before to be honest
The reason we use "trading as" is for efficiency in dealing with Corporation tax.
If we had 3 separate companies the small profits rate allowance (up to £300k) would be divided equally amongst all 3 rather than allocated on a profit basis. If company 1 only made £10k we would effectively waste £90k's worth of small profit taxation.
As things stand now the difference between normal and low profit CT is small and will be zero but a few years ago it was significant as you went from low profit CT into a higher marginal rate (£300k - £1.5m) before dropping back down to the standard rate of CT.
Low profit was 21%
Marginal rate was 29.75%
Standard rate was 28%
Henry
If we had 3 separate companies the small profits rate allowance (up to £300k) would be divided equally amongst all 3 rather than allocated on a profit basis. If company 1 only made £10k we would effectively waste £90k's worth of small profit taxation.
As things stand now the difference between normal and low profit CT is small and will be zero but a few years ago it was significant as you went from low profit CT into a higher marginal rate (£300k - £1.5m) before dropping back down to the standard rate of CT.
Low profit was 21%
Marginal rate was 29.75%
Standard rate was 28%
Henry
Do the different "trading as" names truly mean that you have genuinely different trading activities being run under a single limited company?
If that is the case, as I mentioned previously, that can actually really complicate the Corporation Tax situation - as well as the accounting disclosure requirements.
I hope you and your accountant are aware of this.
If that is the case, as I mentioned previously, that can actually really complicate the Corporation Tax situation - as well as the accounting disclosure requirements.
I hope you and your accountant are aware of this.
I would assume the underlying products are of a similar or complementary nature of each other and are marketed in a similar manner, thus allowing the company to prepare tax comps on the basis of a single trade.
I have a client who has 2 separate trades in 1 company - the comps are a PIA especially dividing up non-attributable costs!
David
I have a client who has 2 separate trades in 1 company - the comps are a PIA especially dividing up non-attributable costs!
David
In our case we running differing trading styles but conduct essentially the same business.
eg in my insurance business we would have one regulated entity and trade as (e.g. only)
Cheap and Cheerful Insurance
Expensive and Serious Insurance
Insurance for Cars
Insurance for buildings
that sort of thing.
Each trading style has to be disclosed to the FCA.
sw
eg in my insurance business we would have one regulated entity and trade as (e.g. only)
Cheap and Cheerful Insurance
Expensive and Serious Insurance
Insurance for Cars
Insurance for buildings
that sort of thing.
Each trading style has to be disclosed to the FCA.
sw
I asked my Grant thornton boys just for you Eric, probably get a £500 bill now :-(
They said that HMRC says this:
"In terms of companies, activities are only likely to amount to more than one trade if:
one activity is so different in nature from the other that it can be seen as quite separate; and
the activities are separately organised and managed right up to Board level."
They said that HMRC says this:
"In terms of companies, activities are only likely to amount to more than one trade if:
one activity is so different in nature from the other that it can be seen as quite separate; and
the activities are separately organised and managed right up to Board level."
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