[C.C.S.]

Hi all just had a meting with my accountant today who filed my tax return and i was shocked of what i need to pay by 31st of january ,over 6K that was.
and he told me that i could save money by setting up as limited company.
as a self employed we pay 20 % off profit plus 8% class 4 NI so basically we end up paying 28% off our profit.
as a limited company you don't have to pay that 8% (or 9% from next year) plus you can put down as expenses parking fines,meals and etc..
he said that the fee will go up from £200 ,that i pay now to £400-500 for limited company but the tax bill should be less.
He said that i could have saved about £1000 in tax this year if i would have been limited.
i wasn't sure about the difference between self employed and limited ,or i didn't pay attention until know

so what you guys think?

[Helen]

First thought is that you need more overheads!
You don't have to be Ltd to claim for expenses as mentioned.
Our EX accountant encouraged us to go Ltd, but it didn't suit to do so.
Our current accountant said not to as what we would save in one hand, would go out of the other, so to speak and there is a lot more paperwork involved....apparently.

Sorry, not much help to you, but you know your business and how it runs best, so decision would have to be down to you not your accountant

[Londoner]

Accountants create more work (= income) for themselves by getting you to go over to a Ltd company. Putting it bluntly.

[scud]

   By going Ltd you would become a director/employee of the company, then to avoid the NI you would draw a small wage (below NI level), then take dividends on the profits.

   It isn't the golden goose your accountant would make out it to be, it is only really becomes necessary when you have a large turnover or lots of exposure to debt within the business which then is limited to the Ltd company and not you personally.

   I should seek a second opinion from another accountant, not a bunch of blokes on the internet.

[Londoner]

  or lots of exposure to debt within the business which then is limited to the Ltd company and not you personally.

  

Even then you don't escape the personal risk because if you took on a lot of debt, say to buy vans, the finance company would want you to put up additional personal guarantees. So its catch 22

[britishwill]

I have a Ltd company (different business nothing to do with cleaning) as well as being self employed.

My Ltd accounts cost significantly more than Self Employment.

I would weigh it up carefully!

[H2GoKent]

I have been ltd for last 8 years. The big advantage for me was that my wife was at home with the kids. So as she did my admin took calls etc. I could pay her a wage. It meant she got her stamp paid and we paid less tax. Without that I'm not sure it work to my advantage. Did he mention corporation tax. Cos u must pay that too.
At the time I set up you could earn about 20k before you paid tax as a ltd co.
But of course the revenue spotted this so it's not as good now.
Now my wife has a job of her own I'm thinking of disincorporating.

Get a second professional opinion is good advice

[SunShineCleaning]

I have been ltd for last 8 years. The big advantage for me was that my wife was at home with the kids. So as she did my admin took calls etc. I could pay her a wage. It meant she got her stamp paid and we paid less tax. Without that I'm not sure it work to my advantage. Did he mention corporation tax. Cos u must pay that too.
At the time I set up you could earn about 20k before you paid tax as a ltd co.
But of course the revenue spotted this so it's not as good now.
Now my wife has a job of her own I'm thinking of disincorporating.

Get a second professional opinion is good advice

My wife and I are a partnership and get the use of her tax allowance, so you don't need to be LTD to benefit from non-working spouse.

[H2GoKent]

True but when we set up you could use both allowances and each take 10k in share dividends tax free.
Unfortunately it meant 30000 companies a week were being set up and the tax man naturally saw this as a problem! 
So a partnership could work these days might consider that