the transition from sole trader to LTD.

[gensetsteve]

in what way would running your land cruiser cost you a fortune? or is this because you use it more for personnel use? I got an e-mail from my accountant about buying a company vehicle today and that i was to ring him if i was going to put a vehicle into the company or make a purchase. I am now thinking it is a complete pain in the ass sorting out all this, as i told my accountant you do paper work, i do the trees and now i'm looking at more indepth book keeping, log books proper kit check records......

 

My business picks up the cost of my car. A percentage of personal use is declared and I pay about £90 a quarter to enable vat to be claimed on the personal use. If I was limited I would pay 1000's a year in personal income tax. Also remember for a car sole trader or paye you can only claim tax relief on the first 12k of vehicle cost each year or that was the rule unless they changed for the fat cats.

[Stereo]

You also need to be aware of the responsibilities you have as a company director, especially if your company takes credit etc.

 

It can all get a bit serious.

[likeitorlumpit]

i was hoping limited meant less responsibility:confused1:

[Paul Jenks]

As the director of a limited company you have a statutory and fiduciary responsibility to the company. As was said earlier the company is a living entity and the director, as an employee, has a legal duty to look after the best interests of the company and it's creditors, the people to whom it owes money.

HMRC are actually quite helpful on these matters and like to be consulted and are free.

[Stereo]

I agree, HMRC are a good resource and are willing to discuss informally and assist where they can. You might get 2 conflicting answers though so it's good to get stuff in writing if it's important.

[Yorkshireman]

basically your accountant will start a directors loan account for the business so all assests at the point of transfer incoporation are allocated a value , which over time will depreciate time in the same way as a ST though the directors loan will not alter at the same rate

( accountants stuff ) this can then be drawn against

 

also as shareholders they can draw a return on the ownershipo of the business & the LTD only pays tax at corporation rates.