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I have recently published an iOS app that is performing (much) better than I expected. Initially the app was a personal learning and development project, and as such the proceeds from Apple are deposited into my personal bank account and I am registered self employed.

My question is, is it possible to transfer revenue from my current self employed status to a new formed ltd. company? If we make an assumption that revenue will be between £5k and £10k a month, is this a more tax efficient way to collect my revenue?

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    Two bits of advice: 1) This is EXACTLY why tax/legal professionals exist. Seek one out and avail yourself of their skills. 2) iOS apps are like fashion. They will fade as fast as they rise. Don't tie your future to this one success. – Wesley Long Sep 7 '16 at 15:27
  • Thanks for the advice Wesley, of course I will be seeking professional advice, I just wanted to know if this sort of transition is possible. I'm aware that the app could flop as quickly as it succeeded, I have very little at stake and a full time job anyway, but here's to hoping! – user2662468 Sep 7 '16 at 16:28
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is it possible to transfer revenue from my current self employed status to a new formed ltd. company? Yes of course it is possible. You can do this either as personal investment into the company (could be offset against your directors loan account which is payable back to you from the Ltd company) or you could make the app a ltd company's asset, associate a value to it and that money is now owed to you too, as if the LTD company bought an external app. This loan or deficit is removable from turnover before tax is due. But that all depends how you set up your company and how you pay wages or distribute dividends. You need a professional accountant to advise taking into account all the factors at hand. Most importantly, this seems like a good vehicle to start a company with, so if you plan to grow, probably the way to go. But that depends on your plans of course.

If we make an assumption that revenue will be between £5k and £10k a month, is this a more tax efficient way to collect my revenue? As Wesley Long pointed out in a comment above, this is what accountants and tax professionals are for. This is simply impossible to answer in any meaningful way without a full picture of your aims, plans and current financial position. (ie More efficient than what?) You are well advised to spend a few hundred of your monthly income to pay for some professional advice.

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    Thanks Paul, exactly the answer I was looking for, obviously there are many more branches in this tree, and I'll be contacting an accountant soon to set something in place :) – user2662468 Sep 7 '16 at 16:29

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