Jump to content

Log in or register to remove this advert

Limited Company vs Sole Trader


Conorjm10
 Share

Recommended Posts

Log in or register to remove this advert

10 hours ago, Conorjm10 said:

Hi, just looking for advice on going limited as opposed to being a sole trader. Obviously there is both pros and cons to both but I'm just wandering if anybody has recently made the transition and has any info on how it affected them and their business. 

 

Thanks.

 

My accountant kept advising me to go limited. It was double the accountancy fees, change of bank accounts, plus if you wanted to then get finance, you had no trading history effectively. I decided against it after speaking to several people who basically got inspected by HMRC and had paid the wrong dividends ending up with massive Bill's of back tax. The loophole of doing it to get round tax has been closed, my accountant no longer pushes me to do it.

The only benefit I can see is you cannot be sued, if you are you just close the company and start again

Link to comment
Share on other sites

I am going back a few years but my accountant then told me that as a Ltd company my own property was safe and could never be taken from me if something ever went wrong...So as a Sole Trader what happens if your insurance does not pay for what ever reason, can someone take your house?

Link to comment
Share on other sites

1 minute ago, swinny said:

No corporation tax is 19% dividends are 7%

My mistake. 

 

We're in the process of switching over from sole trader to Ltd, and it's hard to keep track of everything and keep doing the day job too. 


Either way, the accountant ran the figures and being an Ltd saves us some considerable amount of tax. We're stuck in that uncomfortable situation of not wanting to pay excessive tax (as noone does) but needing to declare maximal income in order to obtain a reasonable mortgage. 1st world problems, I guess....

  • Like 1
  • Haha 1
Link to comment
Share on other sites

11 hours ago, Conorjm10 said:

Hi, just looking for advice on going limited as opposed to being a sole trader. Obviously there is both pros and cons to both but I'm just wandering if anybody has recently made the transition and has any info on how it affected them and their business. 

 

Thanks.

 

Speaking for myself, going limited has saved me a fortune. If I had done it years ago I probably would have saved myself around 50k, but I had a crap accountant who kept putting me off the idea.

Link to comment
Share on other sites

Just now, Big J said:

My mistake. 

 

We're in the process of switching over from sole trader to Ltd, and it's hard to keep track of everything and keep doing the day job too. 


Either way, the accountant ran the figures and being an Ltd saves us some considerable amount of tax. We're stuck in that uncomfortable situation of not wanting to pay excessive tax (as noone does) but needing to declare maximal income in order to obtain a reasonable mortgage. 1st world problems, I guess....

I think some mortgage brokers take into account what you have in your company aside from what you have paid yourself

 

 

  • Like 1
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share


  •  

  • Featured Adverts

About

Arbtalk.co.uk is a hub for the arboriculture industry in the UK.  
If you're just starting out and you need business, equipment, tech or training support you're in the right place.  If you've done it, made it, got a van load of oily t-shirts and have decided to give something back by sharing your knowledge or wisdom,  then you're welcome too.
If you would like to contribute to making this industry more effective and safe then welcome.
Just like a living tree, it'll always be a work in progress.
Please have a look around, sign up, share and contribute the best you have.

See you inside.

The Arbtalk Team

Follow us

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.