ltd, salary, tax etc

[Octopus]

Jeeez a £500k mortgage.......... ;o)))))))

hum. Have you borrowed Diane Abbott's calculator?

 

[Squid]

hum. Have you borrowed Diane Abbott's calculator?

You mean its to low!?

I thought you where a £150k per year electrician looks like you are further up the ladder than I thought ;o))))))

 

[Octopus]

You mean its to low!?

I thought you where a £150k per year electrician looks like you are further up the ladder than I thought ;o))))))

Ha ha ha - so far from the truth.

 

[Octopus]

You mean its to low!?

I thought you where a £150k per year electrician looks like you are further up the ladder than I thought ;o))))))

So £150K divided by 42 weeks @ 40 hours per week is about £95 per hour

If I could do £95 per hour , I would do a 2 day week!

 

[Squid]

Stick to a 35 hour week and don't work yourself in to a grave, I just love young rich widows.......... ;o))))))))

 

[Leesparkykent]

Forgot to add an office in your house allows you a % to claim for bills, cleaner, window cleaner.

Only £4 a week IIRC.

 

[Squid]

Every £ is a prisoner.........

 

[derek]

Only £4 a week IIRC.

You can claim more than £4 per week for use of home as office, the £4 figure is the amount HMRC will accept without any proof being required and has those who use their kitchen table to do their paperwork in mind.
You could read the various BIMs in the HMRC website offering guidance on this, BIM47825 - Business Income Manual - HMRC internal manual - GOV.UK - https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47825 would offer some examples especially if you have a room as a dedicated office.
You should check the possible consequences of Capital Gains Tax on business use on a property you own and then might sell at a later date, I was led to believe that this can be mitigated by allowing a small percentage (of the office or whatever else you are claiming for) for occasional private use, so for example my office could also be used to occasionally read a book in peace.

I would suggest you don't believe anything I have said and consult with a qualified chartered accountant.

 

[lurch]

amazing that people do not do there home work and start asking questions after the event. . have a look at this and google around abit. The internet is a valuable resource if used properly Sole Trader vs. Limited Company | Companies MadeSimple - https://www.companiesmadesimple.com/sole-trader-v-limited-company.html

 

[Octopus]

amazing that people do not do there home work and start asking questions after the event. . have a look at this and google around abit. The internet is a valuable resource if used properly Sole Trader vs. Limited Company | Companies MadeSimple - https://www.companiesmadesimple.com/sole-trader-v-limited-company.html

I've just used the calculator on that link - sure it suggests I would be slightly better off, but makes no allowance, as far as can see, for the additional time and / accountancy costs you will have to allow for or time that you will need to spend doing more work in the evenings.

Being SE means 1 return per year.

Ltd or VAT reg means much more to do ....................

 

[lurch]

I've just used the calculator on that link - sure it suggests I would be slightly better off, but makes no allowance, as far as can see, for the additional time and / accountancy costs you will have to allow for or time that you will need to spend doing more work in the evenings.

Being SE means 1 return per year.

Ltd or VAT reg means much more to do ....................

Yep agreed...... but one valuable element that you can' put a figure on is limited liabiliy.

 

[Leesparkykent]

You can claim more than £4 per week for use of home as office, the £4 figure is the amount HMRC will accept without any proof being required and has those who use their kitchen table to do their paperwork in mind.
You could read the various BIMs in the HMRC website offering guidance on this, BIM47825 - Business Income Manual - HMRC internal manual - GOV.UK - https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47825 would offer some examples especially if you have a room as a dedicated office.
You should check the possible consequences of Capital Gains Tax on business use on a property you own and then might sell at a later date, I was led to believe that this can be mitigated by allowing a small percentage (of the office or whatever else you are claiming for) for occasional private use, so for example my office could also be used to occasionally read a book in peace.

I would suggest you don't believe anything I have said and consult with a qualified chartered accountant.

I have a charted accountant that deals with the lot and I don't operate from a spare room in the house, I have a seperate premises.

 

[Pete E]

I've just used the calculator on that link - sure it suggests I would be slightly better off, but makes no allowance, as far as can see, for the additional time and / accountancy costs you will have to allow for or time that you will need to spend doing more work in the evenings.

Being SE means 1 return per year.

Ltd or VAT reg means much more to do ....................

I think the other area that needs to be considered is if you go bust or if you are sued for a sum of money and end up with court orders and bailiffs chasing you...

As I understand it, if you operate as a Ltd Company, the bailiffs can't take personal possessions to pay debts but some one opereating as a sole trader could lose their car or house ect.???

 

[leo79]

If you're concerned about getting a mortgage then I suggest using a financial advisor.
I struggled like mad when I went from sole trader to Ltd company as all the banks I spoke to wouldn't consider my sole trader accounts (including the bank who I already had an existing mortgage with).
Just so happened I did a job for an FA whilst this was going on, within 3 weeks he's secured us a mortgage with The Coventry Building Society. Yes it cost us £300, but well worth it in my book.