Sole trader to Ltd

[Doug Blease]

My accountant this year said that maybe I should consider becoming Doug Blease Ltd.

 

I understand the concept of Limited liability. Are there any other benefits to be gained in this transfer? I am sure many of you guys started out as Sole Traders in the beginning, maybe you have some wisdom to share.

 

Thanks in advance

Doug Blease

[Dave the dog]

My accountant this year said that maybe I should consider becoming Doug Blease Ltd.

 

I understand the concept of Limited liability. Are there any other benefits to be gained in this transfer? I am sure many of you guys started out as Sole Traders in the beginning, maybe you have some wisdom to share.

 

Thanks in advance

Doug Blease

 

My accountant said i would save more money in NI contributions if i went Ltd.

[Paul Smith]

You will save money as you can claim set up cost, and running expenses, fuel insurance mot etc but, you will pay corporate tax.

[Doug Blease]

I claim those already against my taxable income, or are you describing a different system?

 

I think that its my NI that spurred the bean counter to mention it.

[Dave the dog]

You will save money as you can claim set up cost, and running expenses, fuel insurance mot etc but, you will pay corporate tax.

 

Can you claim the VAT back on gear, up to 7 years before you went Ltd ?

[skyhuck]

Can you claim the VAT back on gear, up to 7 years before you went Ltd ?

 

No that VAT registration.

[Doug Blease]

Beg your pardon Skyhuck?

[skyhuck]

As others have said, you main savings are TAX and NI (which is TAX by another name)

 

Be a little careful, as you need more detailed accounts once LTD, so your accountant will gain from your going LTD.

[Paul Smith]

Can you claim the VAT back on gear, up to 7 years before you went Ltd ?

 

 

No, you can claim it as part of your set up cost, I think its about 5 years maximum but you would have to have a good reason to do this (already employed at the same time).

[skyhuck]

Beg your pardon Skyhuck?

 

I was saying, you claim back vat after vat registration NOT going LTD.