Ltd & VAT

[Arbtech Tree Services]

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.

 

+1

 

If you trade knowing you're insolvent you become personally liable for the debts.

 

Also try opening a bank account for a ltd co without personally underwriting it.....

[Steve Bullman]

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.

 

even if its NECESSARY 4wd?

[PhilBeech]

even if its NECESSARY 4wd?

 

You don't use it for personal use though do you *whistle*

 

Never found this to be an issue personally.

[gensetsteve]

even if its NECESSARY 4wd?

 

commercial ie navara is fine RR or Landcruiser car

[daveindales]

I'm Ltd and haven't paid a penny in NI for a good few years now. I'm also VAT registered (voluntery) and don't find the paperwork too much. No more than a couple of hours a month. Don't be put off by the paperwork, it's not too bad. Any probs, I just give the accountant a quick call.

[likeitorlumpit]

I'm Ltd and haven't paid a penny in NI for a good few years now. I'm also VAT registered (voluntery) and don't find the paperwork too much. No more than a couple of hours a month. Don't be put off by the paperwork, it's not too bad. Any probs, I just give the accountant a quick call.

 

Is it not worth paying the basic. Whatever thats called. About £10 a month from memory. Does this not help with qualifying years on your pension.

[daveindales]

I think you qualify anyhow, as I only pay myself around £580 a month. The rest I pay in dividends. Very low paid workers will pay no NI, but still qualify. This is much the same, as dividends don't count. (I think)

[likeitorlumpit]

I've got a visit booked with the accountant- I'll ask

[TimberCutterDartmoor]

Limited means you can earn what you want.

 

You take your tax code as wages and then a dividend as you want. This can be helpful.

 

Can't remember- think its 20%

There are times when not taking the dividend is helpful

 

No, i have no income.

 

Wife gets the dividend and the CSA take the rest

 

Precisely.

[blackjack]

If you have personal assets ie a house you would be crazy not to be Ltd.

You will be paying less tax and if for example you were sued for negligence or a large contractor went bust on you at least you will get to keep your house,you may think it could never happen to you but it happens every day,to some good people, cover your self go ltd.