a business thought.

helpimcrap · 22 Mar 2009 at 13:11

bear with me on this but i'm after some information which would help my decision.

i've got money to invest as my ISA only allows £3600 a year. :mad:

'if' i was to invest some money and buy 2 cars in a car hire business that a friend owns what are the differences between sole trader and a ltd company?

this is not a 'i will' i'm just fishing for ideas.

would the cars go in my name or the firms? does it make a difference with the type of firm?
how do you stand with servicing/repsairs etc? i basically want to buy and own 2 cars and get half the rental money. the rest is his.
how does income work?

Origin · 22 Mar 2009 at 13:13

Can't you have more than one ISA?

helpimcrap · 22 Mar 2009 at 13:15

Origin said:
Can't you have more than one ISA?

i've got zero idea how that works however tsb will only allow me one ISA. if i had more i could put £3600 a year in one or £360 a year into 10 i think.

regulus · 22 Mar 2009 at 13:56

helpimcrap said:
bear with me on this but i'm after some information which would help my decision.

i've got money to invest as my ISA only allows £3600 a year.

'if' i was to invest some money and buy 2 cars in a car hire business that a friend owns what are the differences between sole trader and a ltd company?

this is not a 'i will' i'm just fishing for ideas.

would the cars go in my name or the firms? does it make a difference with the type of firm?
how do you stand with servicing/repsairs etc? i basically want to buy and own 2 cars and get half the rental money. the rest is his.
how does income work?

I'd ask him to 'employ' you as a subcontractor and then pay your money straight into a LTD account. That way you don't cost him a penny and get your money tax free. Well, until the end of the financial year that is.

mcast123 · 22 Mar 2009 at 14:08

£3600 per year in a cash ISA, £7200 per year in cash and "investment" i.e. stockmarket, for every year the law is in place.

semi-pro waster · 22 Mar 2009 at 14:10

Origin said:
Can't you have more than one ISA?

You can do but you can only invest up to £3,600 in one tax year currently for a cash ISA, if you choose to split that up it is up to you but that is the maximum you can invest.

Sole traders have unlimited liability, a limited company means that you will only have liability up to the amount you have invested. I'm not sure in your situation which would be better but a limited company doesn't need to be expensive to set up, it is however normally a bit more complicated than working as a sole trader.

Tomsk · 22 Mar 2009 at 14:36

You can be the legal owner of the car and have someone else as the registered keeper.

helpimcrap · 22 Mar 2009 at 14:46

ignore the ISA problem. that wasn't the question.

thank you for he replies which are in answer to the question.