Sole trader to LTD

[Welchyboy1]

I am considering now registering as a ltd co. after the world begins to get back to normal

My partner does my accounts which i pay her for and i pay into a pension which could then be paid by the co. Pre-tax if i understand correctly

Has anybody got any opinions or views on this?

 

[Edtwozeronine]

It's not a bad way to go, you can earn up to X amount tax free as a limited company. What X is has probably changed since I last looked into it.

What I do know is a lot of private hire and taxi drivers are set up as LTD companies for tax reasons.

 

[ipf]

It's not a bad way to go, you can earn up to X amount tax free as a limited company. What X is has probably changed since I last looked into it.

What I do know is a lot of private hire and taxi drivers are set up as LTD companies for tax reasons.

If loners, that might backfire on them, at present, with the soon to be made government payments to self employed. As Ltd, it depends how much they've 'paid' themselves over the last three years.

 

[Energetic]

Not sure if this is still live but you can 'sell' the goodwill from your sole trader business to your Ltd company which means that the company starts in theoretical debt and you can earn a bit prior to taxation.

You will have to pay capital gains on the 'windfall from the sale' but it may be less than corp tax and may be eligible for entrepreneurs relief so could be substantially less than corp tax.

All of this is an accounting exercise and you won't need to actually produce any cash.

Ps, im not an accountant and you will need to speak to one. This may not be viable in the current climate but did work prior to this.