[JSMC]

what did you have to do and was it worth it?

[bobplum]

i put a similar post up a few days back.............no answers im afraid
hydro cleaners, Birmingham did it may be worth contacting him

[Moderator David@stives]

I did it, but too tired to type all about it, maybe tomorrow.

Had to do a lot of stuff, also not really worth it unless you have got a large turnover

[JSMC]

I did it, but too tired to type all about it, maybe tomorrow.

Had to do a lot of stuff, also not really worth it unless you have got a large turnover

do you not have to go this route if you employ someone ? ideally in future i want someone part time helping me out. Thing is up her ein scotland ye gotta get licence for them. could prove costly if workers are no good and ye keep going though them

[Moderator David@stives]

No you can stay a sole trader and still employ

[JSMC]

i am guessing you sub out work? I thought they have clamped down on this sort of thing.

[robertphil]

you usually go limited when you turnover so much that theres a risk of you losing your home etc  if you go bankrupt (*if somebody doesnt pay you for example or you are into the bank for big money). limited liability means they can only go after the business assets

[formb]

what did you have to do and was it worth it?

You can't really answer that question without knowing why you are considering it.  

If for example you are doing it for tax reasons you are best to speak to an accountant. You will get people on here who will tell you this, that and the other. It will either save you tax or cost you tax, only you and your accountant will know which. Offset the tax savings against the costs and hey presto you will know if it is worth it.

Ask your accountant.

There are other reasons for going Ltd, you may want to look more professional and attract bigger customers. That works in some cases not in others.

i put a similar post up a few days back.............no answers im afraid
hydro cleaners, Birmingham did it may be worth contacting him

Without going through your accounts no one can tell you if it is right for you or not. They may be able to tell you if it was right for them, but it's complicated and is suitable for some not for others.

Seek professional advice, do not decide what you want to do based on advice from window cleaners, especially ones who may not fully understand how you run your business and what your long term goals might be.

You might consider speaking to someone at the business gateway. They offer free advice and will help you set out a business plan.  

 

[JSMC]

basically i thought if ye wanted to give work to someone ye had to be a ltd company. Even if it was only say 2 shifts per week. I assumed if yer a sole trader you couldn't do this.

[dave0123]

No you can employ as many people as you want as a sole trader (you) are the business and everything is in your name.. a LTD company is like a person in its own right its the difference between a business when your a sole trader and a company when your ltd. Your not a company when you are a sole trader many people make the mistake. and in effect you work for the ltc company and become a director.


The the accountants say you have to see around 30k in profits before it becomes worth changing for tax efficient savings.

[JSMC]

anywhere online to read up on this?

[sam125]

If you take your max tax free income as salary £7500 or whatever it is then take the rest as a divedend you avoid paying NI at 8 percent not precise figures. So if you net profit of say £60000 you save a fair chunk. You can take divedend up to £35000 at only 21 percent tax and everything after that at only 41 percent. Well worth doing if you are earning £45000+ profit a year. However you will be paying more accountantcy fees and hmrc filing fees so need to be earning a healthy profit to get the figures to work

[JSMC]

so best to just stay sole trader i guess lol. just basically speak to accountant and get him to sort it. How do HMRC view sub contracting?