[sparklebright]

What do people think of being Limited.
When I first set up nearly 6 years ago, there were big Tax advantages, but not quite so much now, once you take accountancy into, erm account!

Is there an advantage in image, do you seem more professional? Or is it a disadvantage as people may assume you are expensive.
Sometimes I think about disincorporating and becoming a sole trader.
What about others are you Ltd, if so why?

[paulscotney]

Yes, I agree with all your plus points. Image is good.

 People expect to pay more that is good.

 People know you are not a burglar, that is good.

You have credibility  that is good.

 You pay £350 instead of £80 accountancy fees, not so good but bearable.

I suppose if u work on some poorer areas they may want a beer merchant but on top end residential they prefer a proper business. 

[ok cleaning]

  your subject to status is better than one man band i remember when i bought my new van the sales man looked at the companies house on his pc and saw my company name and              said yes you can choose any van you like it is yours very good feeling

[Ian Lancaster]

There was a very good reason for going limited a few years ago.  Gordon Brown dropped a clanger when he decided to allow limited companies not to have to pay tax on the first 10,000 profit.  The idea was to get all little people like us to join, so we would have to register all our details, accounts etc in the public domain where the government could more easily keep tabs on us all.

I, like thousands of others, joined up on the advice of my accountant.  In the first year I saved thousands in tax.  Brilliant

The next year GB realised he had shot himself in the foot, and took away the tax concession.  Like many thousands of others, I immediately de-registered and went back to being a sole trader.

Apart from image (how much is that worth to you?) the only advantage of being limited is that if you have a lot of finance and you go broke, they can only claim against the value of the business, your home etc is safe.

The downside is that all your details including turnover, profit etc are available to anyone who wants them.

[sparklebright]

There was a very good reason for going limited a few years ago.  Gordon Brown dropped a clanger when he decided to allow limited companies not to have to pay tax on the first 10,000 profit.  The idea was to get all little people like us to join,   

Oh those happy days, I have stayed Limited on the advise of my accountant, as in my case it just about worth it.

A question I have is about turnover/profits.
If you are a sole trader and leave some money you have earned one year in the bank, is it treated as earnings, or is it as with a Ltd co only taxable (personal tax) when you take it ?

[Alex Gardiner]

There was a very good reason for going limited a few years ago.  Gordon Brown dropped a clanger when he decided to allow limited companies not to have to pay tax on the first 10,000 profit.  The idea was to get all little people like us to join,   

Oh those happy days, I have stayed Limited on the advise of my accountant, as in my case it just about worth it.

A question I have is about turnover/profits.
If you are a sole trader and leave some money you have earned one year in the bank, is it treated as earnings, or is it as with a Ltd co only taxable (personal tax) when you take it ?

If you leave some money in your company account at the end of the tax year you will pay nothing for it personally, but the company will have to pay corporation tax on it (21%)

A lot of the benefits of being limited is dependant on how you take money out of the company - Dividend/Bonus/Goodwill.

[sparklebright]

There was a very good reason for going limited a few years ago.  Gordon Brown dropped a clanger when he decided to allow limited companies not to have to pay tax on the first 10,000 profit.  The idea was to get all little people like us to join,   

Oh those happy days, I have stayed Limited on the advise of my accountant, as in my case it just about worth it.

A question I have is about turnover/profits.
If you are a sole trader and leave some money you have earned one year in the bank, is it treated as earnings, or is it as with a Ltd co only taxable (personal tax) when you take it ?

If you leave some money in your company account at the end of the tax year you will pay nothing for it personally, but the company will have to pay corporation tax on it (21%)

A lot of the benefits of being limited is dependant on how you take money out of the company - Dividend/Bonus/Goodwill.

I knew about the company rules, but what if you are not limited, is money left in the bank taxable or counted as earnings, or is it safe?

[davids3511]

Apart from image (how much is that worth to you?) the only advantage of being limited is that if you have a lot of finance and you go broke, they can only claim against the value of the business, your home etc is safe.

No, you have significant national insurance savings because you take the majority of your income as dividents..

The downside is that all your details including turnover, profit etc are available to anyone who wants them.

That's not true either. Unless you are turning over 1m (I think) you have an exemption for being a small company at companies house where it is basically a balance sheet you present to them. That will give no details of profit or turnover to anyone.