Sole trader or Ltd company with out VAT

[Jonny69]

Thanks for the replies, that has cleared a few things up.

I wouldn't want to go with the Vat as at the moment it's just private work so know one would want to pay 20% extra.

Rbs seem to be doing a good deal at the moment so I might go in for a meeting and see how much smoke they can blow up my arse.

 

 

If in doubt cut it out.

 

Stephen Blair summed it up.

 

Unless you will be turning over £250k plus in the first year and have 100k in the bank they are really not interested. Small fry to the banks. When you have a chunk in there they will constantly try and sell you overdrafts and credit cards.

 

No point spending the extra accountancy fees on being a LTD company unless you are clearing quite a lot of money and want to shield it from tax and national insurance. Even then an LLP is probably better if you are married or have a partner.

 

R.e not losing your house. If you can't afford very expensive lawyers and it goes wrong you'd better get a job quick. The mortgage company isn't going to care if you have lost your business. At the same time, a finance company will not make you homeless over a 20k chipper. They want the debt recovered and that won't happen if you are on the street.

[Capstankid!]

If you are selling firewood (you don't say what line you are in), the VAT on heating fuel is only 5%, which you off set by claiming the full 20 % back on the VAT that you have paid out.

 

I am with Santander, just finished the free twelve months. My firewood customers pay by bank transfer and I get updates on my phone. The cost is £7.50 a month which is well worth it for me.

 

Good luck.

 

Daniel

 

Sent from my D2303 using Arbtalk mobile app

 

 

It's actually just a tree surgery so if I was to charge 20% extra on private jobs I would probably price myself out of most of them.

 

Yeah, I am thinking it makes more sense to be a sole trader. I am insured up to 5 million so that should hopefully (touch wood) cover if there was an accident. Worst things worst I would just go back to freelance as I am a decent climber and could always make a living off that.

 

I have got a few meetings with banks this week so I will see how it all goes.

 

Cheers

Joe

 

 

If in doubt cut it out.

[Justme]

£5M tends to be considered not enough for most reasonable sized jobs/outfits now.

 

Remember its not the house that would cost but the 3 disabled kids you create inside that need looking after for the rest of their lives.

[Capstankid!]

£5M tends to be considered not enough for most reasonable sized jobs/outfits now.

 

Remember its not the house that would cost but the 3 disabled kids you create inside that need looking after for the rest of their lives.

 

 

Was kind of thinking that after that accident with the Lorry and the bridge, I bet that runs up to be a big bill. Like everyone was saying you can't hide behind a Ltd company as easy now tho.

 

 

If in doubt cut it out.

[Richard 1234]

£5M tends to be considered not enough for most reasonable sized jobs/outfits now.

 

Remember its not the house that would cost but the 3 disabled kids you create inside that need looking after for the rest of their lives.

 

 

As a reference point I've got to have £10M insurance to cut grass for local parishes.

 

The worst I'm likely to do is flick stones up at people/property.

[richy_B]

As a reference point I've got to have £10M insurance to cut grass for local parishes.

 

The worst I'm likely to do is flick stones up at people/property.

True but the insurer has to consider you might doze off at some point and mow over a bunch of picnicing parishiners!

[Gary Prentice]

As a reference point I've got to have £10M insurance to cut grass for local parishes.

 

The worst I'm likely to do is flick stones up at people/property.

 

The worst? You flick a stone up that hits someone, they then develop a phobia due the sudden trauma, they can't leave home and give up their job, get panic attacks when they see or hear lawn mower adverts, need a care giver to go out and do their shopping.

 

As time passes, lack of physical activity means that they reach 28 stone, health suffers and they need 24 medical supervision for the rest of their lives.

 

All this is after they try to sue you for the trauma and PTSD.

 

Are you sure you have enough insurance?

[Richard 1234]

The worst? You flick a stone up that hits someone, they then develop a phobia due the sudden trauma, they can't leave home and give up their job, get panic attacks when they see or hear lawn mower adverts, need a care giver to go out and do their shopping.

 

 

 

As time passes, lack of physical activity means that they reach 28 stone, health suffers and they need 24 medical supervision for the rest of their lives.

 

 

 

All this is after they try to sue you for the trauma and PTSD.

 

 

 

Are you sure you have enough insurance?

 

 

😁😁😁 I think I better get some more!