Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: dannymack on June 03, 2012, 07:36:31 pm
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Been trading now as a sole trader for 12 years been in the game for 26 years ... Accountant has finally told me I must go Ltd as my turnover has grown and he cant lose the tax he has been losing ... Now got my wife & son work for me & a casual staff when needed. He recons I wont pay as much tax and would be paying myself a small wage & take dividens out of the company, as Im not self employed Im employed buy my company as a managering Director weird !!!
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That's what we do.
I don't know if its for the best or not yet. Ill let you know.
Dean.
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Why dont you spilt your buisness into 2 seperate companys to avoid going LTD?
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There would be no gain,
The only benefit of doing that would be to avoid vat and that's dodgy ground.
Dean.
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Why dont you spilt your buisness into 2 seperate companys to avoid going LTD?
bad advice this
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Been trading now as a sole trader for 12 years been in the game for 26 years ... Accountant has finally told me I must go Ltd as my turnover has grown and he cant lose the tax he has been losing ... Now got my wife & son work for me & a casual staff when needed. He recons I wont pay as much tax and would be paying myself a small wage & take dividens out of the company, as Im not self employed Im employed buy my company as a managering Director weird !!!
We've been Ltd from the start. You make immediate significant savings on NI contributions and if your wife's not in another job (mine isn't; she does all the non-cleaning work in the business) the income tax benefits are massive.
I'd just suggest joining the Federation of Small Businesses in case you have a tax audit - insurance is free with your membership (which costs less than insurance alone).
Vin
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Why dont you spilt your buisness into 2 seperate companys to avoid going LTD?
It is an option,the negatives for this are,it becomes 2 companies,you can't own both companies outright because they are providing the same service,accountancy fees will increase
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Why dont you spilt your buisness into 2 seperate companys to avoid going LTD?
bad advice this
I wasnt giving 'advice' I was offering a suggestion
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Why dont you spilt your buisness into 2 seperate companys to avoid going LTD?
It is an option,the negatives for this are,it becomes 2 companies,you can't own both companies outright because they are providing the same service,accountancy fees will increase
Joe Bloggs Window Cleaning
Joe Bloggs Gutter/fascia Cleaning
?????
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Are you VAT registered ? Are you profits 50k and over
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Its 77k and over for VAT for 2012
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Ltd the easiest way to save a lot of dosh ;)
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so according to the original post, you went 14 years before you started paying tax?
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so according to the original post, you went 14 years before you started paying tax?
He probably worked for somebody before going it alone.
That's how I read it.
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so according to the original post, you went 14 years before you started paying tax?
if he paid himself a wage which is equal to his personal tax allowance and re invested all his profits back into the business, then he would not have to pay tax.
Going Ltd means that he pays corporation tax on his wages and dividends, but he saves 13.8% on NI there are a few other benefits as well.
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Why dont you spilt your buisness into 2 seperate companys to avoid going LTD?
It is an option,the negatives for this are,it becomes 2 companies,you can't own both companies outright because they are providing the same service,accountancy fees will increase
Joe Bloggs Window Cleaning
Joe Bloggs Gutter/fascia Cleaning
?????
The only way that can work is if there is NOTHING shared between the companies.
So
2 PCs
2 printers
2 Phone numbers
2 Broadband accounts
2 Vans
2 Sets of cleaning equipment
2 sets of spares
2 sets of uniforms
2 sets of stationery
2 hole punches
2 staplers
etc, etc...
And you can never, ever use anything from the one company for anything at all to do with the business of the other. A plumbing company in Essex had a domestic wing and commercial. There was one trip found when a domestic van took a spare part to a commercial job. On the basis of that the VAT man linked the two businesses.
And I know this because I'm going through this all at the moment. Not to put too fine a point on it, it's so difficult it's almost not worth it. In the case of what we're going through it adds up, but during the meeting with the VAT consultant who's advising, even my accountant had to think it over at great length before he thought it was worth it.
(And my split doesn't even involve the two van/equipment scenario above, which would render the example you give next to worthless)
Vin
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Thanks for all the info guys. G Brooks Ive always paid Tax but going Ltd will save me paying out much mroe tax than Im paying. Yes Im Vat registered have been for many years which is a bonus as I claim back vat on fuel and van costs well claim back vat on everything to do with the business.The only thing I have to change my name to R&S as RS has been taken but hey Ill be up there with the big boys i.e M&S, B&Q, C&A lol !!!!!!!!!!!!
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but hey Ill be up there with the big boys i.e M&S, B&Q, C&A lol !!!!!!!!!!!!
And Dean Taberner Window Cleaning LTD fella ;)
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but hey Ill be up there with the big boys i.e M&S, B&Q, C&A lol !!!!!!!!!!!!
And Dean Taberner Window Cleaning LTD fella ;)
dont you mean nolan/dean taberner window cleaning ltd :P