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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Uk to answer please., following my

Customer Question

ForCustomerto answer please.

Hello, following my questions yesterday about Ltd Co, I have a further 3 questions:

1 For expenses used prior to the Ltd Co set up, how far back in terms of time can I claim expenses for prior to the Ltd Co being set up.

2. When I have the 2 separate Ltd Co's, would Corporation Tax be paid once for both (so they are grouped together)?

3. If I do not take wages for the first few months, because we will be PAYE rather than self-employed, is there any problem with that in terms of HMRC? Eg not paying NIC etc.

Submitted: 12 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 12 months ago.
Thank you for requesting I help you with your questions[q]1 For expenses used prior to the Ltd Co set up, how far back in terms of time can I claim expenses for prior to the Ltd Co being set up.[a]One has to be reasonable in what one claims.. the basic concept of claiming expenses is that the expense is incurred wholly and exclusively for that business. I would not go back anymore than 6 months.[q]2. When I have the 2 separate Ltd Co's, would Corporation Tax be paid once for both (so they are grouped together)? [a]CT is payable 9 months and a 1 day after accounting period end. Ech company has a unique tax reference. If both the companies had an accounting period end 31 Mar then CT would be payable no later than 1 Jan the following year. CT is paid separately with company reference number.[q]3. If I do not take wages for the first few months, because we will be PAYE rather than self-employed, is there any problem with that in terms of HMRC? Eg not paying NIC etc.[a]There should not be a problem.. once you start taking wages/salary you would pay tax and NI on PAYE.At that point, you should notify HMRC that you have ceased to be self employed and stop paying Class 2 NI. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 12 months ago.

Thank you for your fast response. Just to clarify for question 3 to ensure I have a full understanding on this:

3. If I do not take wages for the first few months, because we will be PAYE rather than self-employed, is there any problem with that in terms of HMRC? Eg not paying NIC etc.

[a]

There should not be a problem.. once you start taking wages/salary you would pay tax and NI on PAYE.

At that point, you should notify HMRC that you have ceased to be self employed and stop paying Class 2 NI.

To clarify, I finished my employed job early January but have not registered as self-employed yet as I was not sure which route to go with the new business (Partnership or Ltd Co):

-I will now be setting up as a Ltd Co from the start based on everything we have discussed (rather than the other route of Partnership first, then Ltd Co later).

So my question 3 above was in conjunction with starting as a Ltd Co straight away. I will not be registering as self-employed now as I will set up the Ltd Co instead but I estimate that there may be 3 months where I do not take any salary. In this event, does that mean there is nothing else to do with regards ***** ***** so I just pay tax and NI based on my monthly salary via PAYE once I do start taking a salary?

Thank you.

Expert:  taxadvisor.uk replied 12 months ago.
Thank you for your reply.You are correct in your understanding... there should not be a problem. If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
Customer: replied 12 months ago.

Thank you.

Are you able to advise on US Tax for UK residents trading in the US?

Expert:  taxadvisor.uk replied 12 months ago.
Thank you for your reply.I am not an expert on US tax matters but can give basic advice.Many thanks
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 12 months ago.

Thank you.

I posted a question earlier today with the topic of US Tax. I have based it on the fact that I will be trading as a Ltd Co. Are you able to see the question and are you able to answer it?

The title of the question is:

I am a UK national and will be selling online products in the US.

Expert:  taxadvisor.uk replied 12 months ago.
I thank you for accepting my answer.

Best wishes.
Customer: replied 12 months ago.

I posted a question earlier today with the topic of US Tax. I have based it on the fact that I will be trading as a Ltd Co. Are you able to see the question and are you able to answer it?

The title of the question is:

I am a UK national and will be selling online products in the US.

Expert:  taxadvisor.uk replied 12 months ago.
I have not been able to see it Sorry
Customer: replied 12 months ago.

Ok, I will create a new question for you to answer.

Expert:  taxadvisor.uk replied 12 months ago.
Thank you for considering me..
I would prefer a US tax expert with more knowledge of foreign companies trading in USA to answer it.

many thanks

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