[Shrek]

Oh bludy hell 

[Tom-01]

Don't forget the 20% corporation tax on profit that needs to be paid though.

[Marc Stock]

 it's 19 percent.  going down to 17percent  in 2020

And that's just one payment. Nothing on account and all that silly Willy...Nonsense they get you to do as self employment

So say the business makes 15k profit after our wages of 23k at zero tax.

That's only £2850 due to the taxman. Leaving £12,150 in company funds to withdraw up to £5000 tax free dividends

Of course it's worth going LTD only problem is your accounts can be seen by public.

[Lee Pryor]

it's 19 percent.  going down to 17percent  in 2020

And that's just one payment. Nothing on account and all that silly Willy...Nonsense they get you to do as self employment

Marc

You can make your other half a director even if she has another job and give her a £5k dividend tax free too.

Gets another £5k into your household


No charge for the advice!

Im suprised Danny didnt tell you!

[Marc Stock]

it's 19 percent.  going down to 17percent  in 2020

And that's just one payment. Nothing on account and all that silly Willy...Nonsense they get you to do as self employment

Marc

You can make your other half a director even if she has another job and give her a £5k dividend tax free too.

Gets another £5k into your household


No charge for the advice!

Im suprised Danny didnt tell you!

Yeah I know but she is nearing the end of an Iva and by her taking a dividend they will want more from her only a year and a half to go

Come on Danny wheres your input?

Lee...you get a jelly baby..

[8weekly]

There is the cost of accounting fees though. A self employed person can do his own tax return but you need audited accounts as a Ltd company. With the tax now on dividends as well the difference is marginal.

[Marc Stock]

That is completely false about it being marginal.

Even with accounting fees im still saving money and you have the option of getting the best price by shopping around if you so wish. You cant shop around for the best price as far as tax is concerned.

You do need audited accounts, but there is a lot you can do yourself to limit the costs. Many accounting packages theae says are very cost effective and simply need a check at the end of the period by your accounting firm before accounts submission. Not like it used to be having to pay for a bookkeeper anymore. Some companies offer a whole package electronicly now.

My accountant is charging approx £1300 a year and that includes payroll but they are a chartered firm Barnbrook Sinclair who i highly recommend with those fees a decent accountant will be well worth thier price.

As a sole trader you are unfortunately open to all sorts of abuse from HMRC. sole traders are an easy target, you might think by doing things yourself you are saving money but if HMRC decide  to target you on an investigation it can get ugly as you have no legal representation or comeback and if they can get away with it they will argue that white is black, trust me i have been on the receiving  end of this its not nice, and they dont care at all.