michael Posted March 10, 2008 Share Posted March 10, 2008 E F P T O Z I P E D P E C F D E D F C Z P F E L O P E C Ltd Quote Link to comment Share on other sites More sharing options...
Kopite Posted March 10, 2008 Author Share Posted March 10, 2008 Eye scream you scream we all scream for Eye screen? I'm not doing a phone sex company Quote Link to comment Share on other sites More sharing options...
CJ Posted March 10, 2008 Share Posted March 10, 2008 Before you choose a name I would definitely visit an accountant as I am pretty sure he will advise you against setting up a limited company. As a sole trader you will have much better personal tax advantages than you do being an employee of a company - which as a director, you would be. Quote Link to comment Share on other sites More sharing options...
Lbm Posted March 10, 2008 Share Posted March 10, 2008 RU Quite Blind?! Ltd Quote Link to comment Share on other sites More sharing options...
Kopite Posted March 10, 2008 Author Share Posted March 10, 2008 Before you choose a name I would definitely visit an accountant as I am pretty sure he will advise you against setting up a limited company. As a sole trader you will have much better personal tax advantages than you do being an employee of a company - which as a director, you would be. I've heard different opinions on this Col, do you have any rough ideas on the pros and cons of each method? I need to sort out a plan soon so i can sort indemnity insurance etc too, cheers Quote Link to comment Share on other sites More sharing options...
johnny g Posted March 10, 2008 Share Posted March 10, 2008 Before you choose a name I would definitely visit an accountant as I am pretty sure he will advise you against setting up a limited company. As a sole trader you will have much better personal tax advantages than you do being an employee of a company - which as a director, you would be. Depends on the turnover as well though and if he has to buy materials in? VAT can be quite nice for cashflow too. If you're a director of a company, pay yourself 8k a year, take the rest as a dividend bonus and pay lower tax. Should be possible to get your tax liability down to 20% or thereabouts relatively easily. Quote Link to comment Share on other sites More sharing options...
Charlotte Posted March 10, 2008 Share Posted March 10, 2008 I'm not doing a phone sex company Oh ermmm, apologies. Quote Link to comment Share on other sites More sharing options...
Havard Posted March 10, 2008 Share Posted March 10, 2008 4 Eyes Opticians? The Eyes Have It? Shite Sight Opticians? If U Can't Read This You Need Me Ltd H. Quote Link to comment Share on other sites More sharing options...
kslb Posted March 10, 2008 Share Posted March 10, 2008 The Visionary Quote Link to comment Share on other sites More sharing options...
CJ Posted March 10, 2008 Share Posted March 10, 2008 I've heard different opinions on this Col, do you have any rough ideas on the pros and cons of each method? I need to sort out a plan soon so i can sort indemnity insurance etc too, cheers My advice would be - don't listen to advice from people like me! Seriously, I would definitely speak to an accountant as they can advise on the latest rules and benefits of both but, IMHO, the pros of being a sole trader far outweigh the pros of a Limited Company. As an example, you as an employee of the company, can claim back expenses such as petrol etc but only up to a maximum rate set down by the government. This amount cannot be set off against personal tax (in fact, I do believe it has to be shown on your tax disclosure as earned income) and you would still be registered as a PAYE employee the same as you are now. If you were to be taking out loans and leases etc, then I would probably suggest being a limited company would be more beneficial as it would limit your exposure to debt - as in "Limited" Company. In saying that, almost everyone these days (banks, lease companies etc) would ask for a personal guarantee off the directors which would then take away the major benefit of being a Limited Company set up. Quote Link to comment Share on other sites More sharing options...
Charlotte Posted March 10, 2008 Share Posted March 10, 2008 'Does it go blurry when I do this...? What about this...? What about now...?' Ltd. Quote Link to comment Share on other sites More sharing options...
Carl_S Posted March 10, 2008 Share Posted March 10, 2008 Have a meeting with a local business start up advisor. I have found the ones round here to be really useful. Check for free domain names in your company name, and with Companies House of course. Get a bit of paper and brainstorm some name ideas. I think you will go for a name you think of yourself. Quote Link to comment Share on other sites More sharing options...
Kopite Posted March 10, 2008 Author Share Posted March 10, 2008 My advice would be - don't listen to advice from people like me! Seriously, I would definitely speak to an accountant as they can advise on the latest rules and benefits of both but, IMHO, the pros of being a sole trader far outweigh the pros of a Limited Company. As an example, you as an employee of the company, can claim back expenses such as petrol etc but only up to a maximum rate set down by the government. This amount cannot be set off against personal tax (in fact, I do believe it has to be shown on your tax disclosure as earned income) and you would still be registered as a PAYE employee the same as you are now. If you were to be taking out loans and leases etc, then I would probably suggest being a limited company would be more beneficial as it would limit your exposure to debt - as in "Limited" Company. In saying that, almost everyone these days (banks, lease companies etc) would ask for a personal guarantee off the directors which would then take away the major benefit of being a Limited Company set up. Yeah true, still on the look out for a decent accountant, will see what they say Quote Link to comment Share on other sites More sharing options...
CJ Posted March 10, 2008 Share Posted March 10, 2008 Depends on the turnover as well though and if he has to buy materials in? VAT can be quite nice for cashflow too. I don't understand this. VAT has nothing to do with being a sole trader or a LTD company. If you're a director of a company, pay yourself 8k a year, take the rest as a dividend bonus and pay lower tax. Should be possible to get your tax liability down to 20% or thereabouts relatively easily. Are you sure on that statement? Quote Link to comment Share on other sites More sharing options...
Gaz Walker Posted March 10, 2008 Share Posted March 10, 2008 I have to say there are some right blinders ( ) on this thread Gaz. Quote Link to comment Share on other sites More sharing options...
RiceRocket Posted March 10, 2008 Share Posted March 10, 2008 Eyeconic Quote Link to comment Share on other sites More sharing options...
johnny g Posted March 10, 2008 Share Posted March 10, 2008 I don't understand this. VAT has nothing to do with being a sole trader or a LTD company. No, I know, but if his turnover exceeds a set amount then VAT registration is required If the value of your taxable supplies is over a specific limit, you need to register for VAT, unless your supplies are wholly or mainly zero rated in which case you may apply for exemption from registration. Are you sure on that statement? Very Quote Link to comment Share on other sites More sharing options...
Kopite Posted March 10, 2008 Author Share Posted March 10, 2008 I have to say there are some right blinders ( ) on this thread Gaz. I'll get your coat for you mate Quote Link to comment Share on other sites More sharing options...
Homer Posted March 10, 2008 Share Posted March 10, 2008 I've heard different opinions on this Col, do you have any rough ideas on the pros and cons of each method? I need to sort out a plan soon so i can sort indemnity insurance etc too, cheers Provided you're below a certain income and do not need limited liability, the tax benefits of a sole trader business can be far greater than those of a limited company. But thats by no means a hard and fast rule Quote Link to comment Share on other sites More sharing options...
Kopite Posted March 10, 2008 Author Share Posted March 10, 2008 Annual gross income would probably be between £62400 - £76800 Quote Link to comment Share on other sites More sharing options...
lexsum Posted March 10, 2008 Share Posted March 10, 2008 limited companies have the benefit of protecting the directors/owners if it goes arse up. this is not the case for sole traders who have personal liabilities for debts of their business. this is the main reason to go limited, then there are tax reasons. vat is separate and is voluntary up to about £60k a year turnover (could be wrong on figure.) the benefit of vat registration is to claim back vat on supplies but you must charge vat on all services and then pay the difference quarterly (or annually if prefered.) i am on flat rate which is for lazy & low spend business types. all info is on inland revenue site for VAT. Quote Link to comment Share on other sites More sharing options...
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