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Second company question UK

Discussion in 'Business & Tax Advice' started by JadMac, Feb 10, 2015.

  1. JadMac

    JadMac Junior Member

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    Hi,

    If you already have a company and want to start another company for the purpose of a joint venture, what are the tax implications?

    I've been told that this second company would be classed as a second income and therefore be taxed at 40% due to this reason alone. Is this true?

    If you have any suggestions to a solution or better arrangements that would avoid this please share as it would be very much appreciated.
     
  2. Trepanated

    Trepanated Supreme Member

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    Your personal tax liability is calculated on your own income, not the business income.

    You should only pay 40% income tax once your personal income hits that threshold.
     
  3. JadMac

    JadMac Junior Member

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    Apparently as it's classed as a "second job" they would instantly have to pay 40% on any income they receive from this second company..........
     
  4. Duffers5000

    Duffers5000 Elite Member

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    You can be a director of a company without drawing a salary ? Do you really need to open two companies for this, are they completely unrelated ?
     
  5. JadMac

    JadMac Junior Member

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    The other individual had his own company already and obviously doesn't want me to be part of his previous ventures. We want to start a new company for a new venture.....