- December 8, 2016 at 11:53 am #164229
I'm sure I will need to speak to an accountant to confirm your advice but would appreciate your thoughts nonetheless, i'll try to keep it brief.
Next year intending to start up but unsure on whether to go sole trader or LTD. I will be starting the business part time (evenings and weekends). However I currently pay higher rate tax in my full time job so my understanding is all profits would be taxed at 40%.
Would there be any advantages to going LTD company? I can only see myself making £500 to £1000 a month turnover. Would prefer LTD as I think it looks more professional but don't want the hassle if there's no financial benefit.
Thank you!December 8, 2016 at 3:56 pm #164244
I can't advise you based on experience but Startups does have a digestible guide that demonstrates the advantages and disadvantages of a limited and sole trader business structure.
Hopefully it helps you make the decision!
Hello there, I am a staff member at Startups.co.uk. Startups.co.ukFebruary 8, 2017 at 2:04 pm #166612
If you have a limited company you are likely to pay an accountant something in the region of £800 - £1,000 every year for preparation and filing of accounts so that needs to be factored into your decision
Ian Johnston - Factoring Solutions --- Independent Factoring Broker for growing SMEs --- Discover my free factoring negotiation service that tailors solutions and protects your UK business. --- Call me today on 01827 707 680February 26, 2017 at 10:26 pm #167819
I'm not an expert, but my accountant did tell me to start as a Sole Trader, because a LTD company has to declare full accounts and it's extra cost and work. I'd definitely recommend getting advice from an accountant, though, no matter what advice you receive on here. The fact you pay higher rate tax in your full-time job could very well affect things.
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