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Readers Forum: Company purpose

01 June 2021
Issue: 4794 / Categories: Forum & Feedback
Providing evidence of company activities for HMRC.

I have set up a new company in which I own all of the shares and it is about to embark upon its first transaction. One of the tax issues I have been told that might arise is whether this company will be regarded as a trading company. It will have substantial income from what might be perceived by an onlooker as a non-trading activity.

It is my understanding that because my new company has just one director there is no requirement to have formal board meetings. But in the absence of board meetings and detailed board minutes do readers have any suggestions as to how to provide written evidence of its activities and purpose?

It has been suggested to me that I should engage a solicitor to act for the company and send a detailed email explaining the nature of the business and the full proposed...

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