Quickwindowclean
Well-known member
- Messages
- 140
- Location
- Northumberland
In short making sure no Vat is applicable on the higher percentage which is the franchisee's
My accountant pretty much advised me that its "ok" but he agreed to report on it and give me a quote for a detailed response.
Meanwhile I'm pretty sure some others have looked at it here already.
What I'm wanting to do is rather then have my soon to be franchisee handle all the payments then pay me (the franchise company) upon invoice which is the easiest way, I would rather it the other way around where I (the franchise company) handles all the turnover then transfers the majority to the franchisee but ofcourse is only liable for the small percentage of turnover hence staying well under the threshold and more importantly NOT being liable on the whole cash flow as it isn't all my turnover.
I've also been advised it's probably wise to have a handling LTD and account that handles all the money then it transfers from there to the franchise account (me) and to the franchisee account (he/her) which means in total I would have 3 LTDs 3 sets of accounts that's including my main LTD Which means more costs! And more confusion i have also however been told it may not be necessary that estate agents etc also do a similar thing . But on the other hand been told pie in the sky I may or may not be at risk with vat fines etc..
I'm pretty sure there's a window cleaning franchise company which handles all the payments
Either way hopefully i made sense
Looking forward to discussing it here and figuring out what's the best course of action
My accountant pretty much advised me that its "ok" but he agreed to report on it and give me a quote for a detailed response.
Meanwhile I'm pretty sure some others have looked at it here already.
What I'm wanting to do is rather then have my soon to be franchisee handle all the payments then pay me (the franchise company) upon invoice which is the easiest way, I would rather it the other way around where I (the franchise company) handles all the turnover then transfers the majority to the franchisee but ofcourse is only liable for the small percentage of turnover hence staying well under the threshold and more importantly NOT being liable on the whole cash flow as it isn't all my turnover.
I've also been advised it's probably wise to have a handling LTD and account that handles all the money then it transfers from there to the franchise account (me) and to the franchisee account (he/her) which means in total I would have 3 LTDs 3 sets of accounts that's including my main LTD Which means more costs! And more confusion i have also however been told it may not be necessary that estate agents etc also do a similar thing . But on the other hand been told pie in the sky I may or may not be at risk with vat fines etc..
I'm pretty sure there's a window cleaning franchise company which handles all the payments
Either way hopefully i made sense
Looking forward to discussing it here and figuring out what's the best course of action