Sorry to disagree but you're not better off being Limited. As of next year you are only allowed £2k as a tax free dividend. This doesn't cover the tax free allowances you get without the Companies NI contributions.
And the difference between Jesus and Mohammed?
My accountant told me this earlier this year and said as a sole trader it's pointless as by the time you also add up additional accounting charges it wouldn't be any more tax efficient or reduce one's tax liability. Although I think he said the changes from 5k to 2k dividend came in as of this current tax year
I had a meeting with an accountant earlier this year and he also said the same. There are other benefits from becoming ltd but for me in my circumstances it’s pointless. Also if I was ltd I wouldn’t be able to do my accounting by cash basis using the simplified accounting scheme.
£788 means you don't pay any NI or tax. It's a strategy a friend of mine who works in IT uses, I discussed it with my accountant and he said it is the system most people with a limited business try to use as long as the household budget can stick within those parameters without relying on dividends. My wife has her own business so this is useless to me but it's good to know you can make someone a partner in a sole trader setup. Can you register your company without going limited? I have a good business name and I'd be keen to ensure no one else could just start using it locally if that makes sense.
I've been Limited, don't say very Mr Garwood, since 1999, but unless you're earning elsewhere you're not using your £11850 tax allowance, only £9456. I don't know for certain but I don't think you can use the rest up when you declare the dividend, if you can't you are losing £500 in tax, as you aren't using £2394 of your tax allowance. I think you would need this clarifying with your Accountant. You can trade under whatever you like as long as the relevant authorities are informed. You can't however register a company name without going limited, I think.
Haha I was still in school the PT. I reckon Garwood was well before you. I heard his National insurance number was 4. I thought that was the case, Scotland seems to have different rules about company names... Surprised Scottish didn't pipe up.
At last a bit of common sense. If some put as much effort into cleaning windows as they do dodging tax they'd be so much better off.
Feel guilty, i'm scanning the receipt for my trainers into Quickbooks as we speak ? I might snap a picture of the state of them to go with the receipt to show the tax man if he ever asks ?
Why feel guilty.. I love my trainers and have more pairs than I can count off the top of my head.. mr hmrc pays for all of them?
Like the sounds of that....I'm going to plan and see an accountant very shortly.. thanks
I don't feel guilty really but someone has to wind Darren up and you weren't about so I thought I would step in ?
I don't wear steels lol
Don’t push him too hard or he will block you
