[Spotfree]

A lot to consider there then, I still will go ahead with it though as the accounatnt fee's are too much, and I cant do LTD accounts myself, so although it might be pain it'll be worht it in the long run.

Thanks for all your input guys I'm much better informed now.

[Shrek]

Is there really not much in it anymore tax wise between sole trader and LTD? are there no other benefits like pensions or other benefits? What profit level would make it worthwhile ?

[Stoots]

A lot to consider there then, I still will go ahead with it though as the accounatnt fee's are too much, and I cant do LTD accounts myself, so although it might be pain it'll be worht it in the long run.

Thanks for all your input guys I'm much better informed now.

How much are your accoutant fees ?

I pay £60 a month so about £720 a year. Its more than sole trader for sure but not horrific

[Stoots]

Is there really not much in it anymore tax wise between sole trader and LTD? are there no other benefits like pensions or other benefits? What profit level would make it worthwhile ?

You can pay into a company pension and its a tax deductible expense for the company.

You can get other benefits like a compnay vehicle but its not usually worth it as you would be liable for benefit in kind.

i think its good if you are getting into the 40% tax bracket as a sole trader as you can keep below the threshold as you can keep money in the company as distribute it as dividends at a more tax effective future date.

As for the profit level you would need to do the calculations.

The main benefit of course is the limited liabilty which isnt really an issue for a solo guy, maybe as you employ staff it becomes more important

A good chartered accountant would explain best, some accoutants are useless ive spoke to a few of those.

[Shrek]

Is there really not much in it anymore tax wise between sole trader and LTD? are there no other benefits like pensions or other benefits? What profit level would make it worthwhile ?

You can pay into a company pension and its a tax deductible expense for the company.

You can get other benefits like a compnay vehicle but its not usually worth it as you would be liable for benefit in kind.

i think its good if you are getting into the 40% tax bracket as a sole trader as you can keep below the threshold as you can keep money in the company as distribute it as dividends at a more tax effective future date.

As for the profit level you would need to do the calculations.

The main benefit of course is the limited liabilty which isnt really an issue for a solo guy, maybe as you employ staff it becomes more important

A good chartered accountant would explain best, some accoutants are useless ive spoke to a few of those.

Cheers , 40% tax bracket would be 50k profit so not there yet !
I didn’t realise all tax allowances have been frozen until 2026 because of the pandemic 😷

[Shrek]

A lot to consider there then, I still will go ahead with it though as the accounatnt fee's are too much, and I cant do LTD accounts myself, so although it might be pain it'll be worht it in the long run.

Thanks for all your input guys I'm much better informed now.

How much are your accoutant fees ?

I pay £60 a month so about £720 a year. Its more than sole trader for sure but not horrific

My fees are £52 a month , to include tax return for window cleaning, rental and PAYE . I’m a sole trader who employs the Mrs to do the admin .

[Pete Thompson]

One thing that put me off though is having to close my bank account and issue customers a new one, would be a nightmare.

The vast majority are GoCardless, I could live with closing the account.

That would  make it even worse wouldn't it ?

They would all have to set up new mandates.

That isn’t how GoCardless works. The customer’s DD Mandate pays GoCardless, then GoCardless pays your nominated bank account.

It’s quite easy to change bank accounts with GoCardless, the customers’ are not affected.

[Smudger]

One thing that put me off though is having to close my bank account and issue customers a new one, would be a nightmare.

The vast majority are GoCardless, I could live with closing the account.

That would  make it even worse wouldn't it ?

They would all have to set up new mandates.

That isn’t how GoCardless works. The customer’s DD Mandate pays GoCardless, then GoCardless pays your nominated bank account.

It’s quite easy to change bank accounts with GoCardless, the customers’ are not affected.

Correct - having had to do it I can confirm this is correct
Darran

[Stoots]

Oh yeh that's quite obvious really.

Technically though they would have to cancel their mandates anyway and set a new one up with you as a sole trader as a Ltd company is a separate legal entity, its not just a change of bank account its a change of person/company.  Its like going from paying odd bods to paying pryors.

Of course you wouldn't bother with all that b******s but technically 

[Smudger]

 

[Spotfree]

A lot to consider there then, I still will go ahead with it though as the accounatnt fee's are too much, and I cant do LTD accounts myself, so although it might be pain it'll be worht it in the long run.

Thanks for all your input guys I'm much better informed now.

How much are your accoutant fees ?

I pay £60 a month so about £720 a year. Its more than sole trader for sure but not horrific

£1700 PA when I include payroll

[the king]

Is there really not much in it anymore tax wise between sole trader and LTD? are there no other benefits like pensions or other benefits? What profit level would make it worthwhile ?

is that 50k turn over or profit

You can pay into a company pension and its a tax deductible expense for the company.

You can get other benefits like a compnay vehicle but its not usually worth it as you would be liable for benefit in kind.

i think its good if you are getting into the 40% tax bracket as a sole trader as you can keep below the threshold as you can keep money in the company as distribute it as dividends at a more tax effective future date.

As for the profit level you would need to do the calculations.

The main benefit of course is the limited liabilty which isnt really an issue for a solo guy, maybe as you employ staff it becomes more important

A good chartered accountant would explain best, some accoutants are useless ive spoke to a few of those.

[Shrek]

Is there really not much in it anymore tax wise between sole trader and LTD? are there no other benefits like pensions or other benefits? What profit level would make it worthwhile ?

is that 50k turn over or profit

You can pay into a company pension and its a tax deductible expense for the company.

You can get other benefits like a compnay vehicle but its not usually worth it as you would be liable for benefit in kind.

i think its good if you are getting into the 40% tax bracket as a sole trader as you can keep below the threshold as you can keep money in the company as distribute it as dividends at a more tax effective future date.

As for the profit level you would need to do the calculations.

The main benefit of course is the limited liabilty which isnt really an issue for a solo guy, maybe as you employ staff it becomes more important

A good chartered accountant would explain best, some accoutants are useless ive spoke to a few of those.

50k profit is when you pay 40% tax

[KS Cleaning]

Is there really not much in it anymore tax wise between sole trader and LTD? are there no other benefits like pensions or other benefits? What profit level would make it worthwhile ?

is that 50k turn over or profit

You can pay into a company pension and its a tax deductible expense for the company.

You can get other benefits like a compnay vehicle but its not usually worth it as you would be liable for benefit in kind.

i think its good if you are getting into the 40% tax bracket as a sole trader as you can keep below the threshold as you can keep money in the company as distribute it as dividends at a more tax effective future date.

As for the profit level you would need to do the calculations.

The main benefit of course is the limited liabilty which isnt really an issue for a solo guy, maybe as you employ staff it becomes more important

A good chartered accountant would explain best, some accoutants are useless ive spoke to a few of those.

50k profit is when you pay 40% tax

In Scotland it’s anything above 43k…..and it’s 41%. Goes some way to paying our free prescriptions eh!