Ltd & VAT

[Steve Bullman]

What I dont like is the idea of every tim dick and harry being able to see my books

[likeitorlumpit]

What I dont like is the idea of every tim dick and harry being able to see my books

 

We all know you're loaded:001_tt2:

[Arbtech Tree Services]

how is the dividend taxed?

 

10% Tax and zero NI.

 

Dividends can only be paid from profits which is a problem if you run the business at a 'loss' for tax purposes.

 

They are paid to shareholders, not just Directors.

 

Whichever way you do things the Government wins:thumbdown:

 

HTH

 

Steve.

[likeitorlumpit]

10% Tax and zero NI.

 

Dividends can only be paid from profits which is a problem if you run the business at a 'loss' for tax purposes.

 

They are paid to shareholders, not just Directors.

 

Whichever way you do things the Government wins:thumbdown:

 

HTH

 

Steve.

 

If thats true it's a very good reason to go limited. We've not taken dividends yet. I'll have to ask the accountant.

[PhilBeech]

What I dont like is the idea of every tim dick and harry being able to see my books

 

As an SME they don't necessarily, they can only see short accounts.

[Arbtech Tree Services]

If thats true it's a very good reason to go limited. We've not taken dividends yet. I'll have to ask the accountant.

 

Been doing it for years and i'm with my accountant tomorrow.

 

As a director you're not subject to minimum wage rules, so i don't actually earn any PAYE. Have just had a letter mind saying as there's a gap in my NI contributions my Gov pension will suffer. Not expecting much from them anyway.......

[PhilBeech]

Its worth considering if you have alot of assets like you own your house ( no mortgage ) you earn over 30k a year. Easier to get credit. Large companies like the LTD bit when giving out contracts. You will pay alot more national insurance. The idea seems to be you can put all your eggs in one basket take stupid risks everyone else gets screwed but you if it goes wrong.

 

 

Thats not really accurate anymore...

 

Any LTD companies borrowing is underwritten by the Directors... you can not just borrow money as a LTD company and spend spend spend.

 

If it goes tits up and they can prove you as the director knew it was on the way out (which of course you did as a small co.) then the creditors can still pursue you as an individual.

 

Going LTD depends on your clients IMO. The main advantages are you can pay yourself PAYE from Day 1 so you are an employee and have all the payslips etc. / advantages that go with that. Makes life a lot easier for mortgages etc.

 

Get some professional (un-biased) advice.

[likeitorlumpit]

Been doing it for years and i'm with my accountant tomorrow.

 

As a director you're not subject to minimum wage rules, so i don't actually earn any PAYE. Have just had a letter mind saying as there's a gap in my NI contributions my Gov pension will suffer. Not expecting much from them anyway.......

 

Do you not pay basic NI?

[Arbtech Tree Services]

No, i have no income.

 

Wife gets the dividend and the CSA take the rest

[gensetsteve]

What I dont like is the idea of every tim dick and harry being able to see my books

 

I think under a certain turnover or profit it does not show on line or you can opt out but think it says something like turnover less than 100,000

 

Another thing is if you have a big fat 4x4 on the business they will kill your tax free allowance so u need a non polluting car.