Running another business or hobby through your company
In principle another business or "hobby" business can be run through the company, although if it is more of a hobby than a business, care will need to be taken to show that it is being run on a commercial basis.
For this reason "sponsorship" schemes, e.g. horses or car racing, normally fail.
Consideration must be given to VAT, consult your account manager for further advice.
Related Articles
Splitting a business to avoid VAT - Disaggregation
VAT disaggregation Artificially splitting a business that makes taxable supplies to avoid crossing the VAT threshold (£90,000) is called disaggregation. HMRC would likely deem such a move tax avoidance. Where there were always initially two separate ...
Company motorcycle
Tax benefits of company motorbikes Choosing a company motorcycle will mean that the benefit in kind values are generally lower than if a company car had been chosen, and as such they will attract lower additional tax charges. For a company, there is ...
Electric cars
Electric cars – Updated 20.05.24 Please contact your account manager to discuss if an electric vehicle is tax efficient for you before you proceed. Financing options Please see our article here for the different options on buying a vehicle. Low ...
Company Car vs Private Car
Running a car through the company can be quite expensive from a tax point of view, unless you opt for a fully electric vehicle. A car is almost always deemed to have private use whether you actually use it privately. Merely being able to access the ...
Investing in a property via a Company
Investing in property via a Company There are various advantages and disadvantages of using a Special Purpose Vehicle company (SPV) to purchase a property. Most of them depend on your current marginal tax rate. If you are a basic rate taxpayer or ...