Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: jaykie on December 03, 2008, 06:20:58 pm
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After having a meeting with accountant im swayed to becoming a ltd company, has anyone else done this and do you think it was a good move.
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i wouldnt go limited unless your planning on taking on somebody
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Whats the +'s ???
Why are you swayed?
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Well thats great!
So you are going to be a lyd company why?
Do you work in the commercial sector? , if so they will like it.. it says you are professional and larger than a sole trader.
Are you VAT registered? Yes? No? If not you are saying you are a large company by being LTD but not large as you are not VAT registered. So there is no point if you are not VAT registered.
Plus your accountant will want you to be Ltd as he probably would charge more.. Yes even if your earning have not changed.. he can charge you more as there is more work involved in being ltd.
So its swings and roundabouts. We are Ltd but also VAT Registered.
So think before going LTD dispite what your accountant has told you. Otherwise if in the commercial sector you will look a bit silly being Ltd and not Vat reg. As some jobs you get you need to prove in the commercial sector that you have enough capital to cope with the jobs you take on.
If you are just deealing with domestics its neither here nor there
Dave
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Check out all the cons. As I undrestand it your insurance will be a lot more expensive. You will have to use a chartered accountant and your accountancy bill will be a lot higher. There is also a cost involved in going Ltd.
Also the tax benefits of a sole trader going Ltd have largely been removed. Fully check out the downside first.
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Ltd is the way to go with been ltd for 5 years now. Yes your accountants bill is more but take it from me my corp tax is low every year never paid more then 2.5k. Yes it also makes you look far more professional when it comes to the larger work (commercial etc) if your just on the residential route then maybe it aint for you. And with regards to the vat just make sure you dont it the threshold each year end.
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Ltd is the way to go with been ltd for 5 years now. Yes your accountants bill is more but take it from me my corp tax is low every year never paid more then 2.5k. Yes it also makes you look far more professional when it comes to the larger work (commercial etc) if your just on the residential route then maybe it aint for you.
One of the reasons is to gain more commercial as looks more pro, and dont you pay less national insurance too
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if you take someone on, limited works in your favour
the limited company is its own identity and you would be employed by 'rwc' as a director, the main reason people set up limited companies is that all debts stop at that company,they cant come after your house etc
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This is another reason i thiought limited so no chance losing home
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if you take someone on, limited works in your favour
the limited company is its own identity and you would be employed by 'rwc' as a director, the main reason people set up limited companies is that all debts stop at that company,they cant come after your house etc
Wrong there mate i bank with Barclays and any overdrafts or loans have to be gaurenteed by me, so if the company dont pay i have to. Mad really cause if the company cant pay the debt how the hell would I.
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do you not have to make these bloody payments on account though, really gets to me
paul
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There is a certain earnings or turnover figure when it makes sense to become ltd. It is quite low. My accountant advised me. From memory it is below £20,000 profit.
Just ask your accountant. He is trained and experienced and wants your business for years to come. He has no reason to bullpoop you. Just choose a decent one. No need to go Chartered, Certified ok.
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Depends on what you are after
Pay less!! Plus other benefits of credibility etc but paying less is a good start. Myself I like the fact that it shows I am not a fly by night Irish gypo etc.
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If you have an already established business which is turning over a reasonable amount of money then it is worth going limited. I have recently gone limited with my window cleaning business and have used an experienced accountant to deal with this. Although it costs in fees it has saved me a considerable amount of money already.
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Also i belive as being a director in the company you can get expenes for yourself and even company cars etc bought by the company hence saving you tax on the business side. Obv you have to take profits out as income too do you dont go stupid lol.
I dont know if thats true but i imagtion it is and just what ive heard.
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i have been cleaning windows for 15 years and have been a ltd for last 5 if your turn over is much higher than a cowboy or a pint n pack of walkers weekenders and you would like to look and feel a pro and do business with other businesses as wel as houses regardless of being vat registered you sould become a ltd good luck
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Cheers guys, hes told me its something to look into in the middle of 2009 as he worked out how my business has been growing, apparently on £30,000 a year i should save just over £2,000 a year on the cat 4 (i think) national insurance as that stands at 8% profit.
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ive just done a little building consultancy work for some1 who has just started off on his own doing PR work, he went straight ltd, said it would save him a few K a year in tax
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i have been cleaning windows for 15 years and have been a ltd for last 5 if your turn over is much higher than a cowboy or a pint n pack of walkers weekenders and you would like to look and feel a pro and do business with other businesses as wel as houses regardless of being vat registered you sould become a ltd good luck
My point exactly
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If you have an already established business which is turning over a reasonable amount of money then it is worth going limited. I have recently gone limited with my window cleaning business and have used an experienced accountant to deal with this. Although it costs in fees it has saved me a considerable amount of money already.
Just out of interest, how does 'going limited' save you on tax? I'm probably far from going limited, in fact I'm happy just the way I am; honest; small cheese and no stress, but aren't you still taxed on your profit regardless of whether you're a sole trader, in a partnership, a limited company or even a PLC?
I'm just being nosey; there'll be no smart-ass replies from me. ;D
What's the difference between being a sole trader and a sole trader whose a limited company?
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i have been cleaning windows for 15 years and have been a ltd for last 5 if your turn over is much higher than a cowboy or a pint n pack of walkers weekenders and you would like to look and feel a pro and do business with other businesses as wel as houses regardless of being vat registered you sould become a ltd good luck
so if your not ltd, your a "cowboy or a pint n pack of walkers weekenders window cleaner " ::) ::) ::)
oh and if your ltd, you look and feel more pro ::) ::) ::)
does it include a facial tattoo then now " Im a LTD company "
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If you have an already established business which is turning over a reasonable amount of money then it is worth going limited. I have recently gone limited with my window cleaning business and have used an experienced accountant to deal with this. Although it costs in fees it has saved me a considerable amount of money already.
Just out of interest, how does 'going limited' save you on tax? I'm probably far from going limited, in fact I'm happy just the way I am; honest; small cheese and no stress, but aren't you still taxed on your profit regardless of whether you're a sole trader, in a partnership, a limited company or even a PLC?
I'm just being nosey; there'll be no smart-ass replies from me. ;D
What's the difference between being a sole trader and a sole trader whose a limited company?
isnt if you get about the tax threshold, you pay yourself a wage below that and then the rest is a Dividend payment ( that is at a lower rate of tax )
it allways used to be anyways
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You can also take £42000 wages (i think its that amount) @ 21% tax and another £42000 in dividends, also @ 21% tax.
Then you make the mrs a director and she can do the same.
So, not hitting 40% tax bracket but being quite comfortable thank you very much.
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You can also take £42000 wages (i think its that amount) @ 21% tax and another £42000 in dividends, also @ 21% tax.
Then you make the mrs a director and she can do the same.
So, not hitting 40% tax bracket but being quite comfortable thank you very much.
Well then I'm a long way-off from being a limited company.
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I'm Ltd, but Ive got a LOT more windows to clean before it affects me like that.
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What a lot do is pay a wage just below the tax threshold and then draw the rest with a dividend. You then pay 21% tax on your dividend but no class 4 NIC so saves quite a bit.
Steve
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you cant be a sole trader ltd company you are just a ltd company and you beome an employee for that company.
if you pay yourself a small wage thinks its£6k a year you dont pay tax or insurance or employees ni you can then take a dividens on the profits made yearly or monthly(you must make a profit each month to take a dividens) dividens are 21% i think
you can do the same for you wife if you make her a director.
you do have more paperwork and higher accountancy fees though.
a soletrader is say ronnie paton working as ronberclear but if your a ltd copany your the director of the company any decisions have to be made by all the directors if more than one.
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you can buy " off the shelf Ltd companies " aswell, which used to seem popular
doesnt being ltd also mean your house is not at risk if you run up credit
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Things are more straight forward being a sole trader, so there’s no need to complicate things until you have outgrown being a sole trader.
If you can’t go beyond sole trader level of doing business, what’s the point of going ltd?
I look at being a sole trader as a test If you want to be ltd, its fine being a sole trader and the money is ok, but what reasons could you possibly have to go ltd if you can’t reach the numbers at sole trader level!
it makes you look and feel more Pro
and you can do business with other businesses as well as houses
well according to ok cleaning ;)
i have been cleaning windows for 15 years and have been a ltd for last 5 if your turn over is much higher than a cowboy or a pint n pack of walkers weekenders and you would like to look and feel a pro and do business with other businesses as wel as houses regardless of being vat registered you sould become a ltd good luck
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A lot of commercial companies will ONLY do business with Ltd companies. This is 1 reason why we did it, to secure a contract with a building refurb company.
I think its worth doing, it does give customers a lot more confidence in you. But , horses for courses.
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Ltd stands for limited liability and aside from the tax efficiancies your liabilities in the event of failure of the company are "limited" to the assets of the company. But be careful as a director you are liable personally for the sound financial operation of the company and can be held liable for trading insolvancy or other breechs.
Many seem to make the error of saying "i'm a ltd company". A ltd company is an entity seperate from th individual you could say my business is a ltd company but you will not be and never can be.
Get professional advice and follow it.