Sole Trader vs Company

[Big Lad]

Hi all,

my first time posting so apologies in advance if a lot of this is gone before. I need some tax advice for a relative. I'm studying for IATI myself, so everyone in the family thinks i'm the expert! I've an idea, but don't want to give misleading advice cos the sums are quite large.

The uncle's a doctor in Dublin - and currently filling out self-assessment at the end of October each year. He's recently opened a new practice and he doesn't really know what to do. In opening the business he spent about €600k on the building and another €150k doing it up and stocking it with office and medical equipment. His wife also owns a high street clothes shop which does a daily trade. Should they combine their trades into one? Can you even do that! Or should they create a holding company to look after both businesses? What would be the CT aspects of that? And can he claim cap allowances for the cost of the business. She began trading in Feb 06, he's trading as a doctor since Sept.

Any help at all would be really appreciated.

Thanks.

 

[ubiquitous]

Your uncle and his wife should be engaging their own professional advice - presumably they can afford it. There is no way you should be attempting to advise them in relation to tax and business structures unless you have a good understanding of all the relevant issues - if things go wrong for them, you do not want to end up being blamed.

I understand that, for reasons to do with professional regulation, there may be restrictions on doctors operating their practices as limited companies. It does not seem sensible for me to operate a medical practice and a clothes shop as a single business - again for reasons to do with professional regulations I doubt if this is permissible in the first instance.