I'm an information technology (IT) contractor and my wife is a Zumba teacher. We are both directors of a limited company. I have been using some of my IT income to set up her business along with covering my own expenses. I have been using two separate profit and loss accounts - is this the correct way to show two businesses under one limited company? How do I show this on the company tax return (CT600)?

Arthur Weller replies:
Since both sources of income are from trading, they should generally be amalgamated for the purposes of the CT600. This is especially the case if both businesses are profitable, although there are new rules in the current Finance Bill allowing brought forward corporation tax trading losses to be offset against profits from a different trade