UK Starting a business as a sole trader.

[Skeeley]

Looking for some information.

Starting out on my own soon, building a clientele with small jobs and eventually growing to larger jobs. Currently been doing non notifiable works, been asked about a few board changes and other bits. Reading online Napit and NIC want a years worth of work to look at. Would I have to submit work to building control and build up a portfolio before getting started with a part p body? Tried online however a lot of mixed messages.

 

[MDJ]

Looking for some information.

Starting out on my own soon, building a clientele with small jobs and eventually growing to larger jobs. Currently been doing non notifiable works, been asked about a few board changes and other bits. Reading online Napit and NIC want a years worth of work to look at. Would I have to submit work to building control and build up a portfolio before getting started with a part p body? Tried online however a lot of mixed messages.

Not everyone will agree of course but I have run businesses and a sole trader is not what I would do, I would start a limited company, far easier and less hassle, a sole trader pays tax in advance based on the previous years takings and if your a small one man band this can be an issue, also with a limited company you can take wages of say 12,500 a year without paying tax and if it is doing well take a dividend at a low tax rate to the business, there are also many other positives, just my view, others will without disagree, but this is my experience.

 

[Dan]

There's a tax advantage of starting sole trader and growing a business you eventually hit a limit where you can't earn much more. (Once you have regular 45 chargeable hours, you struggle to get more without more man hours) So before you hit that point you 'sell' (that's the bit I'm unsure of not sure it's an actual sale per se) the business based on its expanding rate to the new limited company and can effectively gain there somewhere but you'd have to work out the figures and at what time you'd transfer its assets (even if no physical ones yet it has a value as its trading already).

So I started sole trader and you get 18months like that and before your big tax bill based on your previous year trading you go limited.

Would need speak to an accountant though don't wing that based on my post for gods sake ha