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Dane

Going limited



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Dane

As it says.... I know some companies are and some haven’t. How have people found making the change. Benefits and pitfalls?

 

I currently do my own accounts as a sole trader.

 

Thanks in advance

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Green Pro Clean Ltd

I never do my own accounts, and thanks to that fact I got an £1800 rebate this year.  Sorted.

 

The benefits tax wise for going Ltd kick in at £30K plus.  So if you are doing £30k or more you will save money on taxes by going Ltd. 

 

Any more advice on the subject should be sought from a Chartered Accountant, they will all give a free 30 minute complimentary introduction.  

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Part Timer
1 hour ago, Green Pro Clean Ltd said:

I never do my own accounts, and thanks to that fact I got an £1800 rebate this year.  Sorted.

Why did you get a rebate? Did your Accountant miss something off last year. 

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Green Pro Clean Ltd

He misses nothing.  As for why I got a rebate? Because I pay a professional to do my books. Someone that knows exactly what he's doing, someone that's clued up on all the latest government incentives etc.  

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Dave Shaw

I thought rebates were awarded when you overpaid on a previous year. Do you not mean that you have oversaved and your professional lowered your tax bill to a lot less than you thought it would be and therefor kind of give yourself a rebate green pro?


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Dave Shaw

I’ve looked into becoming a registered company quite a lot recently and it all depends on where you want your business to go. If your planning on going big or into the commercial realm then your probs better off limited. If you wanna stay small and especially in domestic then it makes no odds. Both have their ups and downs but the two main reasons for becoming limited would be to get lower taxes when your turnover gets relatively high, like green said above 30k or to come across as being a more professional company. I’d say in the domestic world this makes no odds as nobody cares if your registered or not, they just want clean windows it as simple as that. Maybe if your looking to land a big commercial contract then a ltd company will have the advantage.


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Green Pro Clean Ltd
14 hours ago, Dave Shaw said:

I thought rebates were awarded when you overpaid on a previous year. Do you not mean that you have oversaved and your professional lowered your tax bill to a lot less than you thought it would be and therefor kind of give yourself a rebate green pro?


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What are you on about? No I dont 'over save' and get a lower bill..   And there really is a world of difference between what you think you know about the workings of HMRC Dave and what a good Chartered Accountant knows regardless of how many hours you spend on a helpline. 

 

What my accountant has done is simply told me when and how much to spend on larger items or a company car etc and used his extensive knowledge of incentives and benefits available from HMRC to get me a rebate.  Not some leftovers from the bottom of a piggy bank. 

 

When it comes to LTD registration the answer is when your doing over £30k there is no other answer.  Above £30k the tax breaks are better if you go LTD

 

Also you talk about staying small etc but size is perception of the individual mate. £50 - £60k is quite achievable by one man in a van an that's a small enterprise. 

Simple.  

Edited by Green Pro Clean Ltd

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Jimi

I worked in the offshore and construction trade as Self Employed while my brother (making much more dosh) went Ltd.  On a gross of about £25k I still received £2.4k as a rebate as I had paid 20% of my top line monthly to HMRC for the whole year.

Last yea My accountant put together all my claimable expenses for travel/laundry/tools and PPE then HMRC factored in my 11k-ish personal allowance leading to the final number.   When I worked it out myself I expected around £1600 max.....goes to show, get a Pro.  at £200 as a one off fee per year she was a bargain!

 

My bro still on the fishing boat "had to buy" a new truck for the crew out of his potential profits or kiss and extra £12k goodbye with nothing to show for it on his tax bill!

These statutes in tax law are basically there to continue owners reinvestment into their firms and keep money circulating rather than building bank accounts full of dormant cash.

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Dave Shaw
What are you on about? No I dont 'over save' and get a lower bill..   And there really is a world of difference between what you think you know about the workings of HMRC Dave and what a good Chartered Accountant knows regardless of how many hours you spend on a helpline. 
 
What my accountant has done is simply told me when and how much to spend on larger items or a company car etc and used his extensive knowledge of incentives and benefits available from HMRC to get me a rebate.  Not some leftovers from the bottom of a piggy bank. 
 
When it comes to LTD registration the answer is when your doing over £30k there is no other answer.  Above £30k the tax breaks are better if you go LTD
 
Also you talk about staying small etc but size is perception of the individual mate. £50 - £60k is quite achievable by one man in a van an that's a small enterprise. 
Simple.  

Classic response[emoji23][emoji23]. In my experience a rebait means money back for overpayment. If your guy is so good then why have you over paid in the first place[emoji848]


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Jimi

If you know what your tax band is likely to be you can pay that percentage as you earn or pay the maximum expected bill on your annual gross in january or early april.   Witchcraft happens between beancounters (they need your receipts for  that period) and once deductions are subtracted and other gubbins I don't bother myself with are sorted they then send you back a cheque or direct payment.  Iyou should be able to find an explanation video that'll make more sense on either youtube or a link from hmrc.  🙂  

 

You could be onto recouping more than you think and a select few expenses can be claimed retroactively up to 10 years back!  (self laundering branded uniforms for example)

 

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Green Pro Clean Ltd
5 minutes ago, Dave Shaw said:


Classic responseemoji23.pngemoji23.png. In my experience a rebait means money back for overpayment. If your guy is so good then why have you over paid in the first placeemoji848.png


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You are so clueless its not even entertaining.   

 

'In your experience'    is this your experience of years of training as a Chartered Accountant or the hour you spent on the phone to the help desk.?  

 

Well done. In all my years on here you are only the second person I have decided to block. 

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Dave Shaw
You are so clueless its not even entertaining.   
 
'In your experience'    is this your experience of years of training as a Chartered Accountant or the hour you spent on the phone to the help desk.?  
 
Well done. In all my years on here you are only the second person I have decided to block. 

Id love to know who the other is. [emoji23][emoji23][emoji23]
If you can’t take the heat, stay out the kitchen!! Funny how you love to give it but when it comes back at you you spit your dummy out and take your ball home.


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ks789

lol I love yous twos little spats 🤣 If theres ever a window cleaners annual coach **** up convention at yarmouth or somewhere have to be separate coaches for you  🍺🍺 :1f609:

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Dave Shaw
lol I love yous twos little spats 🤣 If theres ever a window cleaners annual coach **** up convention at yarmouth or somewhere have to be separate coaches for you  [emoji481][emoji481] :1f609:

[emoji23][emoji23]it’s only a little banter although I think he takes it a little personally sometimes.


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ks789

yeh more than likely be all ok over a couple of beers. Is the same with phone texting, often it dont seem to convey how we mean to come across whereas in person seems  easier. i fell out with a good mate over world cup texts earlier this year, ridiculous, but we sorted it now.

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solarpanelcleaningltd

If you want big contracts you really need to be ltd. 

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scottish cleaning service

That's what I am heading for, limited liability, so £250 is the ultimate answer to register a LTD company. It takes all the stress out of trading. 

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Part Timer
4 hours ago, solarpanelcleaningltd said:

If you want big contracts you really need to be ltd. 

Big is in the eye of the beholder. Ltd is only necessary if you have debts, nothing to do with of contacts. 

Edited by Part Timer

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Dane
Speak to an accountant to get bespoke advice
Rather than the advice of a bunch of window cleaners with different opinions


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I am going to, I was just intrigued by what other window cleaners have done


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Teaboy

But there circumstances, objectives and position is different to yours.
So there opinion is useless either way

This question always crops up on here and it’s pointless


It’s like saying I’m buying a new car what do you lot have I’m looking for advice


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Dane
But there circumstances, objectives and position is different to yours.
So there opinion is useless either way

This question always crops up on here and it’s pointless


It’s like saying I’m buying a new car what do you lot have I’m looking for advice


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Thanks for taking the time out to reply

Dane


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Teaboy


Thanks for taking the time out to reply

Dane


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Don’t be silly it’s fine and what the forum is about, but let’s call a spade a spade and this forum has too many opinions and not all the facts to offer you the best advice.

An accountant is free for the initial chat go and speak to them


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Dane

Don’t be silly it’s fine and what the forum is about, but let’s call a spade a spade and this forum has too many opinions and not all the facts to offer you the best advice.

An accountant is free for the initial chat go and speak to them


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Honestly it was a genuine thank you, i agree that’s what forums are for and I certainly don’t take anything personally on a forum.... I thought this thread was done with until I got a couple of notifications yesterday so I’ll take any advice.

Dane


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