[Simon Spencer]

Hi Smear,

Unless you are making a net profit of around £60k a year you wont be any better off, If you are, then go forward you will save money.

As for spliting company up into 2 to avoid vat, the tax man will class this as income diversion, not worth trying to get away with it!

Regards

Simon

[ronnie paton]

i am ltd and have been for two years and i think it was the best thing i ever did, i look more profesional/bigger
i save money  i can put and justify more expenses through than being a sole trader.

i pay less tax and ni.

your accountant should be able to give you a more comprehensive view on this has this is there job but i v outlined a view things.

[ronnie paton]

have a read through this all  though a little out of date

http://www.theefficiencycoach.co.uk/blog/index.php/business-efficiency/sole-trader-or-limited-company/

[Steve CM]

ronnie do you add vat to your domestics? or factor it into the price? When you went over to vat did you add on the price to your customers?

[ronnie paton]

factored it in

i went on flat rate though so i never lost or gained.

aprt from when i made big capitol expenses.

[Steve CM]

i stand to have to pay 15k a year in vat on my domestics if i don't add the charge. I'm gonna add it and see what happens. i'm hoping the backlash won't be too bad. its better than going out and getting 15k a year in extra work and then having to staff it etc.

He who dares...wins! (hopefully)

[Ian Lancaster]

re start in a different name while owing thousands to poor customers !

You've got me puzzled there.  How can a window cleaner owe money to his customers unless he demands payment before doing the work?

[Ian Lancaster]

down side! if you went ltd and didn't like it and went back to self employed! then in law your have to buy back everything you already own!

Not quite sure what you mean, Poleman.  Whichever way, you own the company, so the only person you can buy it back from is yourself.  Admittedly the Ltd Company owns everything, but YOU own the Ltd Company.  So who would get the money you had to use to buy back the assets?

I was Ltd when the perk was first £10,000 tax free, then went back to sole trader, then went back to Ltd a couple of years ago, all on the advice of my accountant.  Never any mention of 'buying back' anything