Why Having Too Many Companies Can Kill Your Cash Flow #137

Having more than one limited company feels like smart planning until it pushes your business into a completely different tax regime. In this episode, we unpack why the £1.5 million corporation tax threshold isn't a single number, it's a number that gets divided across every company you control, and why that catches so many growing businesses off guard. If you've ever set up a company because "that's what everyone does" for property or acquisitions, this one is for you.

Key Topics Covered

Why the corporation tax "large company" threshold gets split between every company you own

The real difference between paying tax annually and paying it in quarterly instalments

How op-co, prop-co, and hold-co structures can bring the threshold down without you realising it

The associated companies rule and how family shareholdings can unexpectedly count against you

Practical ways to balance profit across multiple companies to avoid a cash flow cliff edge

When it makes sense to simplify or consolidate your company structure

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