@albatross
im not an expert so my previous caveat still applies in respect to double checking but as said, ltd company is not much different at a lower lever or with turnover less than 50k some people tend to use as a rough benchmark. It’s different for each situation though.
if you operate legally and don’t be neglectful of your duties you should find yourself and any personal assets protected generally speaking in terms of accidents etc because insurance should cover them.
for the sake of a few hundred per year, if you own any assets such as a house I personally would just go ltd as it is like an extra layer of protection. But only a layer in that respect. As a director. You break the law In some instances for certain things and you can still be personally liable.
tax wise. As an employee it’s 20% tax on income over 12500. Then 13.8% national insurance.
as a company director you can pay yourself like this or pay 19% (think it may have changed to 18) tax on profits and then 7.5% on dividends over 2k.
so it’s 33.8% Versus 27.5% as a general rule. You can use expenses in any scenario but will have more room to do more things via a company. Most accountants won’t tell you most ons and outs as I have found so I would always recommend you learn learn learn because no one else is going to find ways to make your business work better. Rarely.
im not an expert so my previous caveat still applies in respect to double checking but as said, ltd company is not much different at a lower lever or with turnover less than 50k some people tend to use as a rough benchmark. It’s different for each situation though.
if you operate legally and don’t be neglectful of your duties you should find yourself and any personal assets protected generally speaking in terms of accidents etc because insurance should cover them.
for the sake of a few hundred per year, if you own any assets such as a house I personally would just go ltd as it is like an extra layer of protection. But only a layer in that respect. As a director. You break the law In some instances for certain things and you can still be personally liable.
tax wise. As an employee it’s 20% tax on income over 12500. Then 13.8% national insurance.
as a company director you can pay yourself like this or pay 19% (think it may have changed to 18) tax on profits and then 7.5% on dividends over 2k.
so it’s 33.8% Versus 27.5% as a general rule. You can use expenses in any scenario but will have more room to do more things via a company. Most accountants won’t tell you most ons and outs as I have found so I would always recommend you learn learn learn because no one else is going to find ways to make your business work better. Rarely.
