[Jimmy1]

Thanks but If I wait until I next see accountant which will be the end of this tax year will he be able to backdate the forms for this year or will we loose out by waiting?

[SherwoodCleaningSe]

I'd make an appointment with the tax office then. I'm not sure if it can be back dated. 

[Jimmy1]

Thanks, I dont wont to miss out on using both allowances.

[NWH]

ok then, we want to work together, share equipment, costs, van etc can we do this and be employed but still cut the bills down the middle??

It works until something is put on paper,i don`t know what it is but things seem to go wrong and you really get to see what your so called freind is really like.

[Clive McDonald]

Kris, don't, not only what andrew and matt say but also....

Remember the vat threshold, 64k? well two of you will exceed this, and flat rate at 10% is £6,400. That's a big bill for the vanity of proving how much you and your mate trust each other.

Matt suggestion of working together as a team was a very good one.

However, you must be carefull because there is a thing called artificial seperation. This means that if the tax man believes you are partners in all but name he will tax and back tax you accordingly. What this means is say you were husband and wife (I know you are not but just say) you are both window cleaners and both turnover 63k each. The tax man would consider you partners because you ar carrying on the same business from the same address.

[David Slater]

Kris, don't, not only what andrew and matt say but also....

Remember the vat threshold, 64k? well two of you will exceed this, and flat rate at 10% is £6,400. That's a big bill for the vanity of proving how much you and your mate trust each other.

Matt suggestion of working together as a team was a very good one.

However, you must be carefull because there is a thing called artificial seperation. This means that if the tax man believes you are partners in all but name he will tax and back tax you accordingly. What this means is say you were husband and wife (I know you are not but just say) you are both window cleaners and both turnover 63k each. The tax man would consider you partners because you ar carrying on the same business from the same address.

Aaaahhh, I wont go into details but......

My accountant told me something about this a few years ago -

You are two separate entities but come together on certain projects which require extra manpower, skill or equipment.

You have a SYMBIOTIC RELATIONSHIP

Each business is indeed a separate entity but you have trust, skill, knowledge, understanding and a working relationship which can be useful (but not exclusive) to contracting work to the other party.

...Basically, you know the other party does good work and can therefor reward work to the other party without the inference that it is a 'wholly owned' party to the main contractor.

Think about how Laing, Wimpy, Balfour Beatty always get awarded contracts via each other as sub-contractors. There is no suggestion Balfour Beatty owns Laing.

...But they do trust the other party to complete work to a given standard, price and timescale.

Thats a Symbiotic Relationship 


You need a sh*t hot book keeper/ accountant to keep it all above board.






...You wouldnt want the tax man to think you were pulling a fast one would you 

[Oakley Windows]

Thats a Symbiotic Relationship 

So's this

[matt]

You have a SYMBIOTIC RELATIONSHIP

like the Gungan's and the Naboo

[David Slater]

You have a SYMBIOTIC RELATIONSHIP

like the Gungan's and the Naboo

The who and the what!!!!


...time for me to go googling I think!

[Steve CM]

I used to be a partner with someone. it was ok for a while but i found it hard when 2 people pull in different directions, people change, there opinions change, their directions change. always having to think if they would agree or not. It was a pain in the arse getting the LTD company rapped up but we simply closed that account and got the accountant to strike it off.

When i look back on it i'm far better off financially than i was as a partner, my business has nearly tripled in size since but if i was to think that i had to give away 50% of my earnings today it gives me a cold shudder!!

If you have motivation and savvy then don't do it, go it alone

[jaykie]

Can you not keep both companys going so you got 2 brands driving around but use one as the main one and then use the other as a sub contract company on paper.

Chris