Domestic and vat

[Tuffers]

With Cornwall, anyone with money wants to invest in it. Rick Stein restaurants must be like a magnet to the yuppies. Problem is proper Cornish people don't seem to have that extra cash? Look at the fishermen programs on tv, they all moan about lack of housing etc

 

[Pjj]

With Cornwall, anyone with money wants to invest in it. Rick Stein restaurants must be like a magnet to the yuppies. Problem is proper Cornish people don't seem to have that extra cash? Look at the fishermen programs on tv, they all moan about lack of housing etc

The old Cornish do have money they just don’t like spending it ???? most of our best customers arnt Cornish they have moved down from up the line and are used to paying high prices for  services .Again down hear most trades persons are very unreliable and everything is done drekly they will turn up if it suites them if it doesn't they   don’t , so for ones used to reliable on time trades people many down hear get very frustrated that the locals don’t turn up when they say they will this again is why we have done so well as we turn up when we say we will and do what we have promised this one point alone has landed us hundreds of customers, over our competitors . 

 

[Pjj]

With Cornwall, anyone with money wants to invest in it. Rick Stein restaurants must be like a magnet to the yuppies. Problem is proper Cornish people don't seem to have that extra cash? Look at the fishermen programs on tv, they all moan about lack of housing etc

Some are struggling but some of theses fishermen claim they have no money but can afford 1/2 million pound refurbs to their boats etc , same with farmers they claim they have no money but have 2-3 tractors that are 100 k a go so they must be making money , they just like pleading poverty , on the other hand there are those that are struggling to make ends meet and some are paid below minimum wage it’s not a fair society . 

 

[steve garwood]

With Cornwall, anyone with money wants to invest in it. Rick Stein restaurants must be like a magnet to the yuppies. Problem is proper Cornish people don't seem to have that extra cash? Look at the fishermen programs on tv, they all moan about lack of housing etc

I’m backwards and forwards to Cornwall on a regular basis as I have family down there, including uncles who left Peckham in the 70s to go down there and start businesses.

Myself, my dad, who is on the committee of Perranporth football club, and cousins go out on the lash with the football team after they’ve played.

Out of the whole team and subs, there are only 3 indigenous Cornish!

When I chat to them they explain that outsiders (they call us emits) move into the pretty seaside parts of Cornwall and of course this pushes the prices up.

They in turn move inland where the prices are cheaper. Some of these places are depressing. Certain parts of St. Austal and Camborne make Beirut look like Barbados ?

 

[Pjj]

I’m backwards and forwards to Cornwall on a regular basis as I have family down there, including uncles who left Peckham in the 70s to go down there and start businesses.

Myself, my dad, who is on the committee of Perranporth football club, and cousins go out on the lash with the football team after they’ve played.

Out of the whole team and subs, there are only 3 indigenous Cornish!

When I chat to them they explain that outsiders (they call us emits) move into the pretty seaside parts of Cornwall and of course this pushes the prices up.

They in turn move inland where the prices are cheaper. Some of these places are depressing. Certain parts of St. Austal and Camborne make Beirut look like Barbados ?

Grenville estate in Troon is a classic for this we have to have a police escort if we get a shout there ???? Tregajjoran is exactly the same . But fortunately theses places are in the minority .

 

[Iron Giant]

Grenville estate in Troon is a classic for this we have to have a police escort if we get a shout there ???? Tregajjoran is exactly the same . But fortunately theses places are in the minority .

 

[cleaniac]

Going back to the original topic, weather to go to a partnership or not.

Personally, I think is best to go to LTD company status; & both of you have a salary on PAYE. Many opt for a salary up to the NI threshold, and declare dividends for the difference on the Directors account etc. There is a risk though that you end up taking more than the company can manage as its harder to be disciplined for a lot of people they see the money and take it , which isn't normally an issue if you are taking less than £10,000 per year in additional funds; however you will be taxed on the difference, and even be made to pay interest & penalties on the loan back to your company, it can get quite complex.

You can also if your not careful be raked over the coals for extracting money from a business that is technically insolvent. You don't need to have a company with no money in the account to be insolvent;  all it needs is for you to extract more than the company can sustain after corp taxes, fees & expenditure, even if its by £10 you can open yourself up to all sorts of action being taken against you so it can get a bit messy, especially if you have been doing something for a few years and it catches up with you that you should have done it a certain way instead..it does happen all too often.

The best rule-of-thumb is to simply take in salary what you need to live on, even if it means you end up paying some tax on PAYE its a safer bet & better existence. Me and the wife actually take an average uk salary from the business, and we do pay tax, and NI. We rarely take dividends, and if we do its for things like surprise bills or stuff we didn't account for. That way a small surplus can build in the business and you become less reliant on loans/overdrafts and more self-funding and sufficient. You can even diversity capital; to hedge against inflation/and become more independent/ and less reliant on the bank as a whole.  

Hope that helps.

 

[Part Timer]

Going back to the original topic, weather to go to a partnership or not.

Personally, I think is best to go to LTD company status; & both of you have a salary on PAYE. Many opt for a salary up to the NI threshold, and declare dividends for the difference on the Directors account etc. There is a risk though that you end up taking more than the company can manage as its harder to be disciplined for a lot of people they see the money and take it , which isn't normally an issue if you are taking less than £10,000 per year in additional funds; however you will be taxed on the difference, and even be made to pay interest & penalties on the loan back to your company, it can get quite complex.

You can also if your not careful be raked over the coals for extracting money from a business that is technically insolvent. You don't need to have a company with no money in the account to be insolvent;  all it needs is for you to extract more than the company can sustain after corp taxes, fees & expenditure, even if its by £10 you can open yourself up to all sorts of action being taken against you so it can get a bit messy, especially if you have been doing something for a few years and it catches up with you that you should have done it a certain way instead..it does happen all too often.

The best rule-of-thumb is to simply take in salary what you need to live on, even if it means you end up paying some tax on PAYE its a safer bet & better existence. Me and the wife actually take an average uk salary from the business, and we do pay tax, and NI. We rarely take dividends, and if we do its for things like surprise bills or stuff we didn't account for. That way a small surplus can build in the business and you become less reliant on loans/overdrafts and more self-funding and sufficient. You can even diversity capital; to hedge against inflation/and become more independent/ and less reliant on the bank as a whole.  

Hope that helps.

You only need to be limited to protect yourself, to a degree. It is far easier and cost effective to stay as a Partnership. I don't understand why anyone wants to pay NI twice, extra accounting fees, corporation tax, do extra paperwork and then struggle trying to balance the dividend book just to be able to have "Ltd" after the company name.

HMRC worked out the previous tax benefits of being Ltd years ago, I know as I was Ltd. The only real benefits are far to complex, taxation, pensions etc and only really benefit established VAT registered companies, not us lesser mortals.

 

[mike007]

Never had any inclination of going Vat rated, too much hassle, even if my earnings came close to the threshold ,would ensure that i would stay below.

 

[Pjj]

Never had any inclination of going Vat rated, too much hassle, even if my earnings came close to the threshold ,would ensure that i would stay below.

I agree as a sole trader you either want to be just under or a lot over otherwise it’s just not worth the hassle you need rapid grown from 85-100k it soften the blow 

 

[scottish cleaning service]

i got a lucky break and I picked up a large contract for a very well known company with large blocks of flats / semi retirement flats ,

I see this all the time in Business. Just jogging along and then comes the big tempting nugget. By biting it changes your whole life not just your business. The opposite is true when one loses the big contract. Today I read Midas Construction has filed for administration so someone will lose their window cleaning contract cleaning their HQ down in Exeter.

https://www.devonlive.com/news/devon-news/midas-group-administration-construction-devon-6569627

 

[cleaniac]

Everyone's circumstances are different I guess. Whatever you do, always see professional advice.