1967spud Posted January 16, 2013 Report Share Posted January 16, 2013 After speaking to my accountant today with regards to my small buisness hes suggested i go a Ltd company. I am no buisness man my self so thats why i am asking here. Is there any major issues with doing this, do the pros out way the cons? My turnover is only humble atm with an expected100k per annum so as isaid i was told to have a look at this avenue. Link to comment Share on other sites More sharing options...
6mmBR Posted January 16, 2013 Report Share Posted January 16, 2013 Not really sure Mark but with a turn over of 100K you'll certainly need to VAT register pretty quick. I think LTD you pay corporation tax which is at a lower rate. My accountant looked into LTD for me years ago but tax wise it was easier to stay a sole trader. I'm sure somone with more knowledge will come along pretty soon. Cheers Dave Link to comment Share on other sites More sharing options...
MJR Posted January 16, 2013 Report Share Posted January 16, 2013 Spud, have a read of this http://www.ukbusinesslabs.co.uk/forums/money-finances-tax-accounting/953-private-limited-company-advantages-versus-sole-trader-basic-accounts.html Link to comment Share on other sites More sharing options...
jungle_re Posted January 16, 2013 Report Share Posted January 16, 2013 if your turning over 100K being vat reg would certainly help you out, your paying it already at least you can off set it. It will allow you to work your cash in a more useful way i'm sure. Draw back is the admin you vat return needs to be done every quarter which is a bit of a pain but if your using a accounts program like sage is easy just takes a bit of time entering it all in in the first place. I'd never think of running a business that sold/dealt in goods without being ltd. As my company it also seperates your private ownership from the business and as the name suggests unlike sole trading you have limited cover so if things go tits up your not held up for everything and they can't come after your house etc. I'd imagine just running a company vehicle would be of great benefit to you or paying yourself the mileage at 45p gets a fair bit of cash out over the year. fill your boots here http://www.smallbusiness.co.uk and listen to your accountant they are the magic workers; best of luck Link to comment Share on other sites More sharing options...
Gandy Posted January 16, 2013 Report Share Posted January 16, 2013 I would go limited with £100k's turnover but I'm in a very different business and it limits personal liability. I would ask your accountant to set out the pro's and con's and if your not satisfied prob need to find another accountant who can work better with you. PM me if you want to have a chat over the phone, no brain of Britain but have done it before. Link to comment Share on other sites More sharing options...
1967spud Posted January 16, 2013 Author Report Share Posted January 16, 2013 Not really sure Mark but with a turn over of 100K you'll certainly need to VAT register pretty quick. I think LTD you pay corporation tax which is at a lower rate. My accountant looked into LTD for me years ago but tax wise it was easier to stay a sole trader. I'm sure somone with more knowledge will come along pretty soon. Cheers Dave sorted Link to comment Share on other sites More sharing options...
1967spud Posted January 16, 2013 Author Report Share Posted January 16, 2013 thanks guys good food for tought there the 100k is an etimated turnover for my end of year i am using a decent accountancy package so vat returns should be ok i just wish i was more buisness minded at times and not such a chump with all this stuff Link to comment Share on other sites More sharing options...
David Hancock Posted January 16, 2013 Report Share Posted January 16, 2013 Limited gives you and clients cover, more than sole trader - depending on what a person's actual business is and need. My account set mine up and administers it through his Registered office. VAT - Turnover less than 150k allows you to pay a flat rate VAT - rated depending on your specific business, but it means I personally don't have to add up all the time consuming little bits relating to purchases every quarter. HMRC are very good at sorting you out so is Business Link, BUT you need a good accountant. You could also speak the the FSB - Federation of Smal Businesses. They have preferential insurance policies. Your bank will also point to local advisors. Vistaprint are also very good for quality, fast turnround stationery. All the best. David Link to comment Share on other sites More sharing options...
1967spud Posted January 16, 2013 Author Report Share Posted January 16, 2013 thanks David Link to comment Share on other sites More sharing options...
Gandy Posted January 16, 2013 Report Share Posted January 16, 2013 i just wish i was more buisness minded at times and not such a chump with all this stuff FFS Spud, I wish that I was 'more business minded' to turn over 100k in my spare time whilst holding down a job. Link to comment Share on other sites More sharing options...
1967spud Posted January 17, 2013 Author Report Share Posted January 17, 2013 i must admit i dont sit down much nowdays its great to speak to new people most nights now starting out on their shooting /reloading futures Link to comment Share on other sites More sharing options...
eldon Posted January 17, 2013 Report Share Posted January 17, 2013 FFS Spud, I wish that I was 'more business minded' to turn over 100k in my spare time whilst holding down a job. What spare time Gandy?????? Link to comment Share on other sites More sharing options...
auquhollie Posted January 18, 2013 Report Share Posted January 18, 2013 Mark, You would be better Limited. As most small companies like you & me they pay themselves a small salary say £600/CM and then they can take a dividend (tax free bonus) upto approx 38k/year basically you pay tax only onthe £600 salary. This is the most tax efficient way of doing it. For you you would need to go fully VAT registered, the flat rate VAT is for the likes of me were i do not claim tax back on purchases. You on the other hand will be wanting to claim back any VAT that you have to pay out. Especially if you are buying equipment (remember you can sell any equipment you have at the moment to your company and this is tax free) If you do go for the flat rate VAT then you charge 20% on your products, 15% of that goes to the tax man and 5% stays in your company. Like i say though if you are buying equipment etc you would be better full VAT registered. Ads Link to comment Share on other sites More sharing options...
1967spud Posted January 18, 2013 Author Report Share Posted January 18, 2013 Thanks Adam ill be fullt VAT'ed up by this time next week Limited company idea is going to kick in after my end of year March 31st thanks to info from here. My RFD application will be sorted shortly, allowing me to hold a bit of of ammo for local shooters. And ive finally sorted my RCA with the HSE Think thats all ineed. Link to comment Share on other sites More sharing options...
eldon Posted January 18, 2013 Report Share Posted January 18, 2013 Well done spud sounds like you have been a busy bunny Link to comment Share on other sites More sharing options...
1967spud Posted January 18, 2013 Author Report Share Posted January 18, 2013 busy aint the word, Link to comment Share on other sites More sharing options...
SteveW Posted January 18, 2013 Report Share Posted January 18, 2013 busy aint the word, "This time next year Rodney" Best of luck with it all. Link to comment Share on other sites More sharing options...
1967spud Posted January 18, 2013 Author Report Share Posted January 18, 2013 Trotters independants traders Link to comment Share on other sites More sharing options...
garyw Posted January 18, 2013 Report Share Posted January 18, 2013 MARK-i would have thought you would be on more than 100k -seeing as your going to be printing funny money Link to comment Share on other sites More sharing options...
1967spud Posted January 18, 2013 Author Report Share Posted January 18, 2013 what funny money , do you mean scottish Link to comment Share on other sites More sharing options...
Lucror Posted January 19, 2013 Report Share Posted January 19, 2013 You would be better Limited. As most small companies like you & me they pay themselves a small salary say £600/CM and then they can take a dividend (tax free bonus) upto approx 38k/year basically you pay tax only onthe £600 salary. This is the most tax efficient way of doing it. Good advice. Far more efficient to withdraw earnings as dividends rather than as a salary. Link to comment Share on other sites More sharing options...
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