[benny donnelly]

Can anyone tell me the pro's and con's of moving from sole trader to ltd?

I am targeting more and more big commercial jobs and am thinking maybe a LTD company looks better when your trying to get contracts with say hospitals, health centres, schools etc

I am approaching my first year cleaning and have built a fairly substantial round and I now employ 1 guy who does anywhere from 25 to 40 hours per week, so even for tax reasons is there a benefit going ltd?

Cheers 

[Ian Lancaster]

Wow

Only just coming to the end of your first year and you've already built a substantial business that also provides enough work for a full time employee??

If I've read that right you've done phenominally well!

My advice would be to consult an accountant as soon as possible.  We were advised to become Ltd in 2009, having been Ltd some years earlier and then reverted to Sole Trader.  The benefits had changed, making it tax efficient for us to become Ltd again.

As a Ltd company your company employs you, pays you a salary which uses up your tax free allowance so you pay a small amount of PAYE plus your employee and employer National Insurance, then the remaining profits of the company are taxed via Corporation Tax.  Overall we are slightly better off doing it this way.

[formb]

My advice would be to consult an accountant as soon as possible. 

+1

[Simon@ Clearview contractors]

Go limited and save youself on the tax, ok an accountant may charge you a little more for being LTD. but he should more than make up for it if he's worth his salt.

[Joe Martin]

Go Limited mate, but talk to a Accountant first.

[dave0123]

other things start to rise as soon as you become LTD like insurance. You only save what you would pay on national insurance you dont really save any tax because corporation tax is the same as self employed tax. its still worth doing if your profits are good 20-25k say..

[mattstanley]

A good accountant will tell you what's best for you and your business...

[paul13]

other things start to rise as soon as you become LTD like insurance. You only save what you would pay on national insurance you dont really save any tax because corporation tax is the same as self employed tax. its still worth doing if your profits are good 20-25k say..

I was told there's good tax benefits being ltd that's why I done it first accounts done
in july so guess I will find out