Price we pay for a persons skill

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hector said:
yes it was fetched in by the then labour goverment and suddenly overnight it was more advantageous to be a limited company, personally i never felt at ease with it, but i took my accountants advice, but approx 12/18 month later they realised the error and changed the rules, next time you see your accontant have a chat with him about it he will give you more details,but going by what you say about how many lads you have on for you,your work load etc , deffinately go limited
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ive been limited for 3 years now, and to be fair it works well.
 
i know of somebody who was a limited company and he had various loans and overdraft facilities with his bank totalling 40,000, quid, anyway he went through a bad patch and reverted back to being a sole trader, he then found out there was a form called a personal guarantee form which should have been signed, it was not signed,, because the loans had been taken out in his name under a limited company name he was not liable by law to pay any money back at all, this form was a very very important document and the bank ultimately were at fault as they should have ensured this form was signed, he walked away from it all ,all quite legally without paying anything back at all as all the loans etc had been put in his limited company name, since then and i see all the mess and upset the banks have caused worldwide personally i have to say good luck to him, ultimately the bank were responsible for not having this form signed.
 
jus seen an advert for plumbing and heating engineer job on a day rate of 150-200 a day. yesterday i was offered rendering work on 90 a day. i know mostly they will get better rates of pay but still!! private work is different but if a builder offers me 120 a day i snap their hand off!
 
My reason for going Ltd is not if I go bust but the warranties given on work. As I have said before I have only had the Weber job come back as a warranty claim and in the end I had to stand to the different colour as Weber although I had called their bluff would not honour their warranty but the crack was proven to be a structural defect. I am a lot wiser now.

I am thinking of increasing the warranty given to compete but with T & C attached. It goes against my principles and because of various ongoing problems I would given the opportunity pack this business in at a moments notice. But what i do not want once I have moved onto greener pastures is a warranty claim. Not for one minute I think I will get one but you never know. Being Ltd will make me not liable and I can sleep at night. It is all to do with keeping stress and worry at bay.
 
I thought the good part about a ltd co was that as well as keeping the minimum tax threshold when you pay yourself, you could pull out another £10k plus in dividends tax free? Also 'directors loans'...tax free....?

That was deffo the case when I was limited I'm pretty sure.
 
Pretty sure it was the first £10k tax free, then taxed after that.

That was 3 or 4 years ago tho.
 
nah its not tax free,
you can earn up to 6 and half grand or what ever it is, the same as anyone else tax free.
your just taxed at a lower rate if your pulling your income as a dividend as technically your an employee even though youy own the company.
 
Ah right. I knew there was some benefit. Most of my wages were took as a directors loan...perhaps where I got the 'no tax' bit from...
 
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