[mike1986]

Has anyone been advised by their accountant to do this?  As in run 2 separate companies, 1 that is your round and another company that collects franchise royalty fees from franchisee. The accountant i spoke to was unsure if it would be allowed

[mike1986]

Vin from perfect windows...is this what you do?

[NWH]

I think you’ll be getting a private message lol.

[Smudger]

I would say not - unless you franchise is operating from a separate location - the franchieee will have their own accounts but the royalties will be yours and put with your window cleaning biz IMO

Darran

[Ched]

I would find another accountant.
One question to ask yourself, why would I want 2 companies? If the answer is to pay less tax/vat then HMRC would most likely think similarly!!!
You have to completely separate the 2 businesses - i.e you can't use same vehicles for a start - so if you took a franchisee out in your work van then you could be in trouble.
Best to find a better accountant to be safe.

[NWH]

If you have any influence in any way in any other company if it’s in you’re dogs-wife’s-sons-daughters or sweet fanny adams,you need to declare it.

[Stoots]

Dont believe everything your accoutant tells you, they do get it wrong.. .its you who will have to prove to HMRC that they are truly seperate entities and they are not linked in any way shape or form and that you didnt do it purely to avoid VAT, which we all know you did.

[NWH]

Eh.

[TomCrowther]

If you franchised out all your window cleaning customers to Franchisees, and your "umbrella Co" received those payments only and your other company did something like render cleaning, or roof cleaning only then there wouldn't be a problem.
But as others have said, if you carry on with the windows then your just trying to minimise tax/vat etc.

[NWH]

If you have any input in either company.