Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Paul erithwc on July 23, 2014, 08:44:48 am

Title: Ltd vs Soletrade tax question
Post by: Paul erithwc on July 23, 2014, 08:44:48 am

Due you have to pay tax in every penny when Ltd or do you still get a allowance like sole trade ?

If i have to pay tax on that £9,440 allowance it would be an extra £1888 tax paid per year.

Thanks Paul

Title: Re: Ltd vs Soletrade tax question
Post by: alfie11 on July 23, 2014, 09:59:56 am

You would be employed, would you not get a a personal tax allowance ?

Title: Re: Ltd vs Soletrade tax question
Post by: Robin Ray on July 23, 2014, 01:57:07 pm

The company does not have a tax allowance however as an employee of the company you do and as an employee the wages you pay yourself are an offset towards your company tax bill. In effect you only pay tax on the profit your company makes.

Where a LTD company really scores over being a sole trader is when you can have two directors ie a husband and wife team etc which can both make use of their maximum tax allowance but with the added benefit of not having to justify exactly how much work you did to claim those tax deductible wages.

A good accountant helps too. :)

Title: Re: Ltd vs Soletrade tax question
Post by: Paul erithwc on July 23, 2014, 02:17:31 pm

Thanks for the reply its cleared up a few things i wasn't sure on.

It's going to be a husband and wife thing so i will get things moving  ;D

Thanks Paul