[Tristan R Clean]

As the  tax thresholds are about to be frozen.
My question is do some of you sole traders
purposely stay below the £50 000 bracket to avoid paying the 40% above the threshold?

Or , Are you not bothered and take the hit and view anything as extra no matter the tax

T

[Slacky]

There’s nothing like dropping bait....

[deeege]

There must be quite a few of the fellas on here that have this problem, the ones doing £400+ days. Be interesting to see if any of them have any advice for you.....

[AuRavelling79]

It's only tax on the band above 50k so it makes little difference if earnings were say 55k. (although it would affect SEISS eligibility)

Vat threshold is the only one worth thinking about IMO.

[KS Cleaning]

The threshold in Scotland  is £43 662 then you’re on to 41% tax, myself and my wife both go into the higher tax band, had we lived south of the border our combined tax liabilities would have been around £1500 less😢

[deeege]

The threshold in Scotland  is £43 662 then you’re on to 41% tax, myself and my wife both go into the higher tax band, had we lived south of the border our combined tax liabilities would have been around £1500 less😢

Nicola Sturgeons phoney investigations into the former first minister don’t pay for themselves y’know.

[KS Cleaning]

The threshold in Scotland  is £43 662 then you’re on to 41% tax, myself and my wife both go into the higher tax band, had we lived south of the border our combined tax liabilities would have been around £1500 less😢

Nicola Sturgeons phoney investigations into the former first minister don’t pay for themselves y’know.

🤣🤣 
The former first minister is a sleazebag🤮because he got found not guilty doesn’t mean he didn’t do it...then he has the nerve to cry wolf🤬

[Don Kee]

Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.

[KS Cleaning]

Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.

That’s true, but it is galling when you take on a new house at lets say £20 and you know you are only going to be keeping £10 of that.

[Martin Lane]

if you constantly worry about going over the vat limit or paying 40% tax then you will never grow your business, 40% is a bit unfair as you are penalizing people for working hard but thats life
One the other hand you also save 40% of  things like new vans and Systems depending on what you earn

Martin

[Mike Burd]

Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.

That’s true, but it is galling when you take on a new house at lets say £20 and you know you are only going to be keeping £10 of that.

Get them to pay cash and keep it all.

[KS Cleaning]

Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.

That’s true, but it is galling when you take on a new house at lets say £20 and you know you are only going to be keeping £10 of that.

Get them to pay cash and keep it all.

Now why didn’t I think of that🤔

[Stoots]

I would say if you are at that point then go Ltd

[Mike Burd]

I would say if you are at that point then go Ltd

I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.

[Stoots]

I would say if you are at that point then go Ltd

I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.

Depends on profit level.

Think they said 25% on 50k profit or over, so im assuming that will be profit not turnover. Which in that case most window cleaners under VAT should be ok.

I will go back to sole trader if im affected, not paying 25%, especially since i never took a penny of help.

[Mike Burd]

I would say if you are at that point then go Ltd

I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.

Depends on profit level.

Think they said 25% on 50k profit or over, so im assuming that will be profit not turnover. Which in that case most window cleaners under VAT should be ok.

I will go back to sole trader if im affected, not paying 25%, especially since i never took a penny of help.

I’d actually forgotten that bit. I’ll wait for the accountant’s advice. I’m assuming the 25% will only be on profit over £50k so I guess we’ll need to take bigger salaries to keep profits below £50k.

[LBWCS]

I would say if you are at that point then go Ltd

I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.

A d I think turn over has to be over 250k

[deeege]

I would say if you are at that point then go Ltd

I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.

A d I think turn over has to be over 250k

Anyone with 3 or 4 vans or more would be over both the £250k turnover and £50k profit threshold, depending how they reinvest of course.

[NWH]

Unless they are franchising then they are staying under it 🤣🤣🤣

[deeege]

Unless they are franchising then they are staying under it 🤣🤣🤣

Have you come to terms with the corporation tax rise yet? Having 3 staff, 4 vans and the prices that you charge you must be over the £250k T/O and £50k  threshold?