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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4984
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: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year 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 1 year 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 1 year 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 1 year ago.

Thank you.

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

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.I am not an expert on US tax matters but can give basic advice.Many thanks
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year 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 1 year ago.
I thank you for accepting my answer.

Best wishes.
Customer: replied 1 year 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 1 year ago.
I have not been able to see it Sorry
Customer: replied 1 year ago.

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

Expert:  taxadvisor.uk replied 1 year 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