Ltd Co and self-employed

Dottie

I have a client who is a personal trainer (self-employed) and she wants to open a gym under a limited company. Can she continue to be self-employed for her private clients but also run the gym under the limited co?

Any implications I should think of?

Thanks as always

Dottie

Monsoon

Yes she can.

If she keeps them separate, she won't enjoy the Ltd liability of the company, but can continue to enjoy the profits of the sole trade if the Gym makes a loss at first. She may pay more tax being a sole trader, but all the profit she makes is her own.

She will have to pay 2 sets of accountancy fees, one for her sole accounts, one for the Ltd Co.

The complication comes if she shares resources with the Ltd Co, could make things complicated, but might not...

Various things to think about and mostly depends on her particular circumstances.

Sorry, brain not in full speed mode today but hopefully a little food for thought

Psyche

Another issue to consider is VAT, if these two entities are so closely associated then the combined turnover will be what is taken into account in registering for VAT. She could not register the limited company but not charge VAT to her private clients.