sole trader vs ltd

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spread2015

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Hi im a sole trader thinking about going ltd. can anyone with more knowledge on the subject explain any advantages or not to the switch.

im a contractor work on commercial and housing sites mainly, with a couple lads. would ltd affect the way i get paid would it still be 20% deducted by main contractor or is it different when youre ltd. im clueless on the matter

thanks for any information
 
And you can run away from any liability by closing the firm. But, it costs a bit more. Pro's and Cons.
You really want to read the HMRC web pages on it, and talk to an accountant - but be aware he's got an interest in charging you for doing your books etc. if you go limited co.
 
spread2015 said:
Hi im a sole trader thinking about going ltd. can anyone with more knowledge on the subject explain any advantages or not to the switch.

im a contractor work on commercial and housing sites mainly, with a couple lads. would ltd affect the way i get paid would it still be 20% deducted by main contractor or is it different when youre ltd. im clueless on the matter

thanks for any information
Click to expand...
Pros for ltd
Less tax paid
Buisness bank account
Liability is on buisness and not you
Looks more professional
Easier to get credit/mortgages


Cons
More accountancy fees
May go into vat threshold
 
Monkey Boy said:
No Rishi payouts?
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benedict cumberbatch sherlock GIF
 
I have a couple Ltd and I went that for liability reasons on 1 and tax reasons on the other.... I am also self employed for some other bits so I really make my accountant work hard
 
When I went ltd back in 05 my accountant said that when you weighed it all up, pros and cons, you needed to be earning about 75k to warrant going ltd. purely for tax reasons. Things have changed quite a bit since then and I'd imagine you'd need to earn a lot more than that.
 
Kinkyboy said:
Pros for ltd
Less tax paid
Buisness bank account
Liability is on buisness and not you
Looks more professional
Easier to get credit/mortgages


Cons
More accountancy fees
May go into vat threshold
Click to expand...
Half of that is bollox
 
a few years ago i was busy busy busy and tax laws were different
my accountant changed me from sole trader to limited company, i never felt at ease with this , but i took his advice
his fees increased from 180.00 per year to 460.00 year,
i also had a overdraft and bank loan totalling 8,000 quid
then approx 2 years later goverment changed tax laws,
then from nowhere mrs.hector almost died crossing the road, tripping on kerb and landing full on her face
then from nowhere i was hit with crohns disease and emergency operation
buisness went down hill fast
my accountant changed me back to sole trader from ltd company
the bank bless them ignored what had happened and proceded to close my account
but what nobody realised either me/accountant/bank was this
when you are a ltd company and have a loan /overdraft, you have to sign a form called a personal guarantee form
for whatever reason, the bank had made a mistake and had not asked me to sign this form,ultimately it was there fault
because of this error, i did not have to pay one penny back of my loan and overdraft, and i actually got a letter of apology from the bank
been sole trader since
 
hector said:
a few years ago i was busy busy busy and tax laws were different
my accountant changed me from sole trader to limited company, i never felt at ease with this , but i took his advice
his fees increased from 180.00 per year to 460.00 year,
i also had a overdraft and bank loan totalling 8,000 quid
then approx 2 years later goverment changed tax laws,
then from nowhere mrs.hector almost died crossing the road, tripping on kerb and landing full on her face
then from nowhere i was hit with crohns disease and emergency operation
buisness went down hill fast
my accountant changed me back to sole trader from ltd company
the bank bless them ignored what had happened and proceded to close my account
but what nobody realised either me/accountant/bank was this
when you are a ltd company and have a loan /overdraft, you have to sign a form called a personal guarantee form
for whatever reason, the bank had made a mistake and had not asked me to sign this form,ultimately it was there fault
because of this error, i did not have to pay one penny back of my loan and overdraft, and i actually got a letter of apology from the bank
been sole trader since
Click to expand...
Yup thats true.most banks/lenders now ask for personnel guarantee that ull pay back if company goes bust which means whats point as buisnessoans are more expensive interest wise
 
hector said:
a few years ago i was busy busy busy and tax laws were different
my accountant changed me from sole trader to limited company, i never felt at ease with this , but i took his advice
his fees increased from 180.00 per year to 460.00 year,
i also had a overdraft and bank loan totalling 8,000 quid
then approx 2 years later goverment changed tax laws,
then from nowhere mrs.hector almost died crossing the road, tripping on kerb and landing full on her face
then from nowhere i was hit with crohns disease and emergency operation
buisness went down hill fast
my accountant changed me back to sole trader from ltd company
the bank bless them ignored what had happened and proceded to close my account
but what nobody realised either me/accountant/bank was this
when you are a ltd company and have a loan /overdraft, you have to sign a form called a personal guarantee form
for whatever reason, the bank had made a mistake and had not asked me to sign this form,ultimately it was there fault
because of this error, i did not have to pay one penny back of my loan and overdraft, and i actually got a letter of apology from the bank
been sole trader since
Click to expand...
I knew you was a lucky f**k*r!
 
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