you have still failed to ask my basic question
can the tax man knock on your door for you to pay your neighbours tax bill?
a limited company is a seperate individual that is why it as limited liability
examples what if a son and father are both living at the same address can the tax man regard it as the same business?
a limited company means that if you run into a financial problem that the directors have protected their own personal property a limited company is liable to corporation tax why because it is regarded as a seperate individual.
come on boys some proper reasoning not your own ideas.
oh ad if anyone has had next doors tax bill let me know did you pay it?
You really need to seek legal advice as your not believing what we are writing on here and your sarcastic comments are quite honestly BORING!
Gone are the days when a Ltd Company accrues lots of debts and then the directors walk away scott free. Like I have said, the VAT & TAX offices are not stupid and will look to offset the liability against the directors. Look at Companies house it is all in black and white. You have to understand, too many high profile people have done this to the Tax man, Richard Branson, Peter Stringfellow, Victor Kiam, Lord Archer to name a few, because of the millions they walked away with the Tax man has tightend up this flaw in the legal system and now as a Director you are also personally liable for any dodgy dealings under a Ltd status, how do I know, because I have been a Director for many, many years and when in my earlier years things were very touch and go, it was pointed out to me VERY CLEARLY by the Tax Man and the VAT dept that I would be pursued for any debts that were not legitimate. i.e. deliberatley spending money with the knowledge I couldn't repay it. So I couldn't go out and buy a brand new BMW on lease knowing my comany was financially unable to pay for it - getting the picture now?
Regarding your neighbours bill, well look at it this way if this helps you understand. You own a house and then buy another one to rent out, you can tell me if you still pay tax on both and if your second house is classed as taxable due to the income you receive. Or maybe if you own a house and then go into partnership with a mate and buy another property, you are still liable for the taxes and on your own personal tax both properties are treated as yours. Again, how do I know this, lets just say i own more than one property.
So, you run a sole trader business and have an interest, i.e. you are a named director on a Ltd Company, then yes, your tax is viewed in a diffent light. They will look at what is involved and what similarities there are between the two business. If they feel this is to similar they will tax you based on both of your businesses. So, an example. You trade a Ltd Company for Commercial contracts which you do, and also operate as a sole trader cleaning only domestic - Tax man's view - Too similar, viable interest in both, adds up turnover, submits details is above to VAT man if over the threshold and also adjusts your taxable income accordingly.
So, whatever you believe or choose to do, please don't post questions asking for advice only to rebuff them with sarcasm and wit, I and other members on here look to help other members and not waste our time.
Best of luck!
