sole trader working as cis sub contractor to own ltd company

shelleym

Hi All

I have come across a query today and i am hoping someone can give me the answer my client has set up as a sole trader last year and has purchased a pick up and a laptop i have advised him to claim annual investment allowance for this however he has also advised me that he intends to set up a limited company in the next year and i have advised him not to claim if this is his intention as he will need to pay a balancing charge when he does incorporate and he has asked me if it would be possible for the ltd company to contract him as a sole trader to do the work would this be allowable?

RyanMIP

I would suggest your client poses this question to an accountant.