[♠Winp®oClean♠]

Macmac is spot on. Yes you will reduce your tax bill but you still have to find more money to spend in the first place. You could of course buy a brand new van every year and pay no tax but you'd be skint all the time.
My accountants bill is £95 - think I have a bargain there.

You don’t have to find any “more money to spend in the first place”

You use the money that you ‘already have’; you know which money that is don’t you?………………………….. The money that’s already accountable for tax

See what you get for £95.00!  :

What a numpty head!

Ewan, if you don't know what your talking about, please don't pretend

[Dave Willis]

corporation tax is  normally around 20-22% up to few hundred thousand pounds.

Its 21% now, and our mate Cameron, has recently lowered it to 20% - although thats not in effect until after April 2011.

Completely different game to being a sole trader, you would have to be at the top of your game as a sole trader to go ltd,

At the top of your game.  Really?  Why is that? 

My accountants bill is £95 - think I have a bargain there.

Thats not a limited companies accountants bill.  He is either ripping you off or your a sole trader.



Considering the money the majority claim to be earning on this site, the majority should be running limited companies.  If your profiting less than 15k its probably not worth it.  If your earning 30k as a one man band, going limited would save you about a grand a year factoring in accountants costs.  If you earn more than that, and are not limited, well, the tax man is your biggest fan.

As Andy rightly points out you would have to buy the business from yourself, if you want to revert to being a sole trader.  You don't want to go there, so you need to be sure of your choice.  But simply put, if your taxable profits are 20k plus your almost certainly better off limited.

Interesting Joe, someone who can post something sensible. Yes the £95 bill is for sole trader and not ltd obviously. My accountant has quite an easy time of it to be honest, mainly because of George.

[Joe Lauzon]

I don't see its much of a decision Ewan.  Even if your profits are 30k, surely your mad to be a sole trader.  Your giving money away to the tax man if you stay as a sole trader.

If your an old boy about to wind down, I understand.  Otherwise, its black and white if you ask me.

How?

30k equals a saving of £1673 if you are limited over a sole trader.  Subtract the extra cost of being limited, which is £675 for my accountant, so I will use that figure.  If we use the figure of £95 for a sole trader, which is extremely cheap.  675-95 = 580 difference.  1673-580 = £1093 saving of being limited compared with sole trader at a profit of 30k.

I used to do my own as a sole trader, but you need to really be on top of what you can claim.  Bottom line, if your profit is 30k and your limited as opposed to being a sole trader you will save approximately a grand per year.  Simple as that really.

There are other minor differences between the 2 company types.  Minor pros and cons that you can google if your curious.  Lets face it, money talks.  Thats the "how" of why I think its black and white.

[Joe Lauzon]

I don't see its much of a decision Ewan.  Even if your profits are 30k, surely your mad to be a sole trader.  Your giving money away to the tax man if you stay as a sole trader.

If your an old boy about to wind down, I understand.  Otherwise, its black and white if you ask me.

When you say 'profit' do you mean after your personal wage or before you take anything?

Okay here is an example:

Turnover 50k
Expenses 10k
Personal allowance 6,475
Taxable profit (which is the figure I was refering to) =  £33,525

[Joe Lauzon]

He is an incorporation tax calculator...

http://www.newmanandpartners.co.uk/resources/tax_centre/tax_calculators/incorporation.php

[Dave Willis]

It does say so at the bottom of the page:

This calculator can only give a guide to potential savings but cannot cater for all situations. You must consult an accountant for specific advice in your own circumstances before taking any action

[Dave Willis]

You wouldn't would you 

[Joe Lauzon]

Fair enough, feel free to babble on pretending you know what your talking about.  I was just trying to help to try to explain the ins and outs.

The basic principles of taxation are very straight forward actually.  But I'm not going any further into it as the game here seems to be the big "I am" rather than having constructive conversation.  

[Dave Willis]

You said it Ewan! What a plank!  :

[♠Winp®oClean♠]

You said it Ewan! What a plank!  :

 

Good for a laugh mind.

[♠Winp®oClean♠]

Have you two read your own post, many others have, CIU has a big membership with the majority using there brain.

I’m not saying you two don’t use yours. Just saying you’re not very bright.

You've missed a ? mark & there is "their" in this case. You always get that one wrong


There's nothing funnier than watching someone desperately trying to appear clever!