Sole trader to Ltd

[skyhuck]

skyhuck, how long have you been a ltd company?

 

10 years, first did it for the tax free dividends, but I asked recently if it was still beneficial and my accountant assured me it was.

[Matt Adams]

hmrc website mentions "tax credits" on dividends under £37k so this cancels out tax needed, is this what you've found?

[skyhuck]

hmrc website mentions "tax credits" on dividends under £37k so this cancels out tax needed, is this what you've found?

 

yes..

[Matt Adams]

thanks skyhuck, i'll stop being nosey now and go and talk to my accountant!

[skyhuck]

I have four children so the family tax credits add up.

[Tom D]

Thats the other advantage of being a LTD co, if your partner takes a wage for secretarial work and has no other job you can get over 4k each tax free.

[gensetsteve]

Thats the other advantage of being a LTD co, if your partner takes a wage for secretarial work and has no other job you can get over 4k each tax free.

 

Ltd or sole trader you can earn up to around 51/2 k ea tax free ea year. If your wife does not work for you and is at home with the kids she did once hold the door open so you could load your saws so you paid her 5k for that.

 

Getting back to the credit check I may have picked up a black mark somewhere without knowing it so need to check my credit reference. I get accts rejected because we are not ltd. Not from small companies but large corps etc. I dont have debts or loans.

[skyhuck]

 

Getting back to the credit check I may have picked up a black mark somewhere without knowing it so need to check my credit reference. I get accts rejected because we are not ltd. Not from small companies but large corps etc. I dont have debts or loans.

 

Not sure you are right about this, I have NO over draft on my company bank account, don't want one but if I wanted one I would have get a witnessed affidavits to say I will personally act as guarantor for any borrowings.

 

I have no problem getting finance on equipment, as I use asset finance, so the money is secured against the thing I buy.

 

I don't really see how a creditor would find the fact that some one has limited their liability as a positive thing?? Does it not just make it more difficult for them to get their money back if things go wrong??

 

I agree that other firms, who you wish to deal with see LTD Co's as more legitimate, but in this situation it's normally us extending credit to them not the other way round.

[Peter]

It is harder to get credit and credit accounts as a Ltd company, especially in the first few years of trading.

 

I persuaded my bank to give my ltd co an overdraft facility, never used it but it helps to build credit history. For most other credit facilities I have been asked for either a director's guarantee or a bond paid in adance.

[gensetsteve]

Not sure you are right about this, I have NO over draft on my company bank account, don't want one but if I wanted one I would have get a witnessed affidavits to say I will personally act as guarantor for any borrowings.

 

I have no problem getting finance on equipment, as I use asset finance, so the money is secured against the thing I buy.

 

I don't really see how a creditor would find the fact that some one has limited their liability as a positive thing?? Does it not just make it more difficult for them to get their money back if things go wrong??

 

I agree that other firms, who you wish to deal with see LTD Co's as more legitimate, but in this situation it's normally us extending credit to them not the other way round.

 

I could be wrong about this not had time to look into it. The way I look at it if I go bancrupt they can take a few bricks from my house if I was limited they could kiss my A@@e. There must be a cheap simple register they can access only works on ltds . At least twice in the last 6 months I have been refused an acct on the basis of being sole trader. Its not a problem for me not trying to brag but I dont want credit I want discounts. I have 15k to use on my credit card if they wont give me an acct or take cards stuff em. Plenty of other suppliers out there.