Thinking going ltd

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scott.beaumont

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Been a sole trader for ages thinking going ltd as been offered couple contracts direct cut out middle man anyone got any advice and experiences going ltd?
 
well it cost you more for accountant £1.000 or more and I think you have to pay company tax once yr not sure exact figure
 
I've been limited and back to sole trader. Its more paperwork being limited and generally accountancy costs are higher. If you have a high turn over and profit its worth being limited because it can technically save you some tax making it worth the aggro. Years ago being ltd meant you could earn your normal allowance before paying tax but also the company could take 10,000 pounds as a tax free dividend to divide between directors. A real bonus if you were a limited company one man band. Unfortunately the government put a stop to that as too many people were taking advantage of it. At the time it meant you could earn around 15,000 before you even started paying tax. Its probably worth talking to an accountant and let them advise you on whats best for you and your business. The one downside of being limited is that it makes it a pig to borrow money, mortgages etc
 
Mike814 said:
I've been limited and back to sole trader. Its more paperwork being limited and generally accountancy costs are higher. If you have a high turn over and profit its worth being limited because it can technically save you some tax making it worth the aggro. Years ago being ltd meant you could earn your normal allowance before paying tax but also the company could take 10,000 pounds as a tax free dividend to divide between directors. A real bonus if you were a limited company one man band. Unfortunately the government put a stop to that as too many people were taking advantage of it. At the time it meant you could earn around 15,000 before you even started paying tax. Its probably worth talking to an accountant and let them advise you on whats best for you and your business. The one downside of being limited is that it makes it a pig to borrow money, mortgages etc
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swings and roundabouts really, being ltd works for me.

but although who knows what the original poster is on about, makes no difference whether your limited or not as regards to winning jobs.
 
You can set up a ltd company for your contract work and keep your sole trader for domestic stuff. In the process of doing it now.
 
To make it pay from purely a tax point of view you need to be making 50-55K profit a year, there are as others have said advantages and disadvantages to being Ltd.
 
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