It's not pointless going LTD.
1. I'm going to be able to take £23,000 out of the business in wages for both me and the missus. And an extra £5000 in dividends tax free for myself. So that's £28k with no tax to pay. Enough to live on which is what I'm after.
2. I won't need to make payments on account anymore for self employment. This is a ball ache and makes life difficult if you keep growing your business as your always needing to find another half year of tax payments to make when they aren't even due yet.
3. I do want to grow my business, I know for a fact that down here earning 70k a year is entirely possible for one van, however there is little point as a sole trader as when you hit those figures the majority of that upper income goes in tax.
4. My comments about it being difficult to hit £55k is more of a personal hurdle for me. I have in the past nudged vat threshold but I was working Monday to Friday every week every month full time and I did it for nearly 4 years and completely got fed up with the job. Eventually i hated it Boring boring boring, and the tax due...Goodness me what was the point of all that work most of it gobbled up by the taxman.
5. My working calender is a 4 week month. I do not work on 5th weeks. I am working 4 days a week with Wednesdays my selfish day to do what I want to do. When I do work I am mostly finishing by 4pm and starting at 9. Some days I hit £400 a day other days less, it's swings and roundabouts. Depends on the round.
6. Since reducing my hours, and taking Wednesdays off I have found my enthusiasm back in window cleaning.
I do appreciate that there are ones on here that say I'm doing something wrong by not doing more than 50k a year, but I have been there and done that and it's just not worth it by the time you pay your taxes.as a sole trader. Been doing it for 14 years now.
Plus I got clobbered for an extra £30k tax bill in 2008. As in the early days I was making a lot of money and it was easy. And I had to declare bankruptcy.
I am looking to expand the business with another van, and an employee. It's up to that employee to make it successful as they will be on commission for targets etc.
A window cleaning business with 20 vans at 50k per van is a £1million a year turnover company. I can't see how that is somehow a failure on those estimations.
