Using one bank account for multiple revenue
Discussion
Evening everyone.
To keep the story short I have one main company which generates about 70% of my income (online retail), on the side of this I also dabble in property and a couple of other small 'flip/Buy&sell' type companies where I buy/sell higher value products.
At the moment I have to juggle the money between accounts depending on where I need it which can be a bit of a pain sometimes.
What I would like to know is if I can basically put all the money in to one account under one LTD co name and use that for anything from buying stock for the ecommerce side of things but also to buy a property cash if one came on the market, in the end just declare one return each year.
Would this be possible or due to nature of the businesses being different would it not work?
There is very very minimal overheads related to the ecommerce company which would affect anything.
My reason behind this is I am slowly pulling back on the ecommerce business to spend more time with my family so the money from that business could be better used in other things but I dont want to empty that account as it still trades and is my main income.
I hope the above makes sense and there is an option?
Also regarding the property, any BTL is in a separate LTD co, the one account with all the cash in would be used to buy, renovate and sell property.
To keep the story short I have one main company which generates about 70% of my income (online retail), on the side of this I also dabble in property and a couple of other small 'flip/Buy&sell' type companies where I buy/sell higher value products.
At the moment I have to juggle the money between accounts depending on where I need it which can be a bit of a pain sometimes.
What I would like to know is if I can basically put all the money in to one account under one LTD co name and use that for anything from buying stock for the ecommerce side of things but also to buy a property cash if one came on the market, in the end just declare one return each year.
Would this be possible or due to nature of the businesses being different would it not work?
There is very very minimal overheads related to the ecommerce company which would affect anything.
My reason behind this is I am slowly pulling back on the ecommerce business to spend more time with my family so the money from that business could be better used in other things but I dont want to empty that account as it still trades and is my main income.
I hope the above makes sense and there is an option?
Also regarding the property, any BTL is in a separate LTD co, the one account with all the cash in would be used to buy, renovate and sell property.
Edited by FreshStart on Monday 24th May 13:06
I'm pretty certain that there's no issue with doing this.
So long as the money in and out is accounted for properly on the relevant books, where that money is paid into and paid from is of less importance - providing it all tallies up on the accounts. Tallying that all up may be more of a pain that keeping separate accounts though.
So long as the money in and out is accounted for properly on the relevant books, where that money is paid into and paid from is of less importance - providing it all tallies up on the accounts. Tallying that all up may be more of a pain that keeping separate accounts though.
Monkeylegend said:
Well presumably you could have several different companies which fall below the VAT threshold individually but combine them into one company and you collectively then trigger the threshold and end up collecting VAT for HMRC.
Or maybe I have just made that up.
Yes, but you can also then reclaim VAT on your inputs.Or maybe I have just made that up.
Doofus said:
Monkeylegend said:
Well presumably you could have several different companies which fall below the VAT threshold individually but combine them into one company and you collectively then trigger the threshold and end up collecting VAT for HMRC.
Or maybe I have just made that up.
Yes, but you can also then reclaim VAT on your inputs.Or maybe I have just made that up.
You also then have to think about whether you pass that 20% onto your customers if you haven't up to that point been VAT registered if you are providing a service that attracts VAT.
I had that issue with my business which is why I stayed below the VAT threshold, making me far more competitive cost wise than those who were charging VAT for the same service.
Monkeylegend said:
Doofus said:
Monkeylegend said:
Well presumably you could have several different companies which fall below the VAT threshold individually but combine them into one company and you collectively then trigger the threshold and end up collecting VAT for HMRC.
Or maybe I have just made that up.
Yes, but you can also then reclaim VAT on your inputs.Or maybe I have just made that up.
You also then have to think about whether you pass that 20% onto your customers if you haven't up to that point been VAT registered if you are providing a service that attracts VAT.
I had that issue with my business which is why I stayed below the VAT threshold, making me far more competitive cost wise than those who were charging VAT for the same service.
However, I suspect Eric may have been referring to HMRC not liking disparate trades off-setting profits etc.
Edited by CaptainSlow on Monday 24th May 17:56
The companies are already vat registered so there shouldn't be any change there?
The only one which isn't is the BTL ltd co as there is no need to be honest.
In short I will basically be combining funds to have one account with all the cash in to buy/sell what I wish, rather than be moving funds around between companies.
If I decide to buy 50k stock and then a 80k house that month, both later sold on for approx 170k (example) the end result in regards to tax will be the same?
Accounting might be a bit of a headache but our purchases are mainly fewer but larger value rather than tons of lower value goods so I think updating the accounts every few days would be beneficial (we do it every 2-3 weeks now) and will help us keep on top of it. Out goings are also minimal so again there isn't loads of record keeping.
Just one account buying & selling everything we can make a profit on
The only one which isn't is the BTL ltd co as there is no need to be honest.
In short I will basically be combining funds to have one account with all the cash in to buy/sell what I wish, rather than be moving funds around between companies.
If I decide to buy 50k stock and then a 80k house that month, both later sold on for approx 170k (example) the end result in regards to tax will be the same?
Accounting might be a bit of a headache but our purchases are mainly fewer but larger value rather than tons of lower value goods so I think updating the accounts every few days would be beneficial (we do it every 2-3 weeks now) and will help us keep on top of it. Out goings are also minimal so again there isn't loads of record keeping.
Just one account buying & selling everything we can make a profit on
Doofus said:
Monkeylegend said:
Yes but usually you end up paying them more than they pay you.
Yeah, but you still get the same net revenue for what you sell, and what you buy gets a little cheaper.
What I was buying that I could claim VAT back on worked out as a negative figure for me so I would have been worse off by several £k over the year.
According to my accountant anyway, so I stayed below the threshold.
Anyway that might not be part of what Eric was alluding too
FreshStart said:
The companies are already vat registered so there shouldn't be any change there?
The only one which isn't is the BTL ltd co as there is no need to be honest.
In short I will basically be combining funds to have one account with all the cash in to buy/sell what I wish, rather than be moving funds around between companies.
If I decide to buy 50k stock and then a 80k house that month, both later sold on for approx 170k (example) the end result in regards to tax will be the same?
Accounting might be a bit of a headache but our purchases are mainly fewer but larger value rather than tons of lower value goods so I think updating the accounts every few days would be beneficial (we do it every 2-3 weeks now) and will help us keep on top of it. Out goings are also minimal so again there isn't loads of record keeping.
Just one account buying & selling everything we can make a profit on
If you're proposing to use one bank account for several different companies/trading entities, then no.The only one which isn't is the BTL ltd co as there is no need to be honest.
In short I will basically be combining funds to have one account with all the cash in to buy/sell what I wish, rather than be moving funds around between companies.
If I decide to buy 50k stock and then a 80k house that month, both later sold on for approx 170k (example) the end result in regards to tax will be the same?
Accounting might be a bit of a headache but our purchases are mainly fewer but larger value rather than tons of lower value goods so I think updating the accounts every few days would be beneficial (we do it every 2-3 weeks now) and will help us keep on top of it. Out goings are also minimal so again there isn't loads of record keeping.
Just one account buying & selling everything we can make a profit on
If they are all a single company/trading entity, then yes.
CaptainSlow said:
Doofus said:
CaptainSlow said:
A bit more complicated than that.
Not muchDoofus said:
CaptainSlow said:
Doofus said:
CaptainSlow said:
A bit more complicated than that.
Not muchCaptainSlow said:
Doofus said:
CaptainSlow said:
Doofus said:
CaptainSlow said:
A bit more complicated than that.
Not muchYes I would probably take it down to one main LTD company rather than having, one for e-commerce, one for property flipping and one for alternative sales.
So it would save on accounting and that side of things too.
I will run it by my accountant but wanted to get my head around it a bit more first before going in there blind as the idea is a little bit different!
So it would save on accounting and that side of things too.
I will run it by my accountant but wanted to get my head around it a bit more first before going in there blind as the idea is a little bit different!
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