[derek west]

ash i erm said, i said erm erm What what, it was a typo. ahem, anyway, back to the thread.

steve/mike

yes you are missing something.

a bloomin accountant, 

[Mike Halliday]

My Ltd Co has paid no tax for the last 2 yrs.

 I've had 5 holidays, a new car and my wife has new T*ts.......  AND YOU SAY I DON'T HAVE AN ACCOIUNTANT....... i HAVE A BRILLIANT ACOUNTANT!!!!

[derek west]

 

like it.

[Steve Chapman]

I know how to claim & not pay much tax, but surely if you claim too much and your accounts don't show much profit you could be shooting yourself in the foot if you need a loan or mortgage etc

That's what I've been led to believe unless I'm missing something ?

Steve

[Carpet Dawg]

totally agree with ian, i had a very big profit this year and still not paying tax thanx to my accountant, and all above board before you ask, woop woop.

Start saving the pennies for the next tax year. You'll get hamered.

[derek west]

not according to my accountant, hence the discussion to go ltd. there are ways to get alot of it back.

again, a good accountant are worth there fee, i pay £400 a year. will be more if i go ltd but still well worth it. all those that do it there self will insist they can do just a good a job, all i can say is try an accountant for 1 year. you'll be amazed the difference between a rug doctor and a professional carpet cleaner.

[justin brown]

i have a sole trader partnership and am paying £550 plus vat per year, this seems expensive now?
 

[happy mondays]

I have experience of both sole trader and ltd, I am a shareholder in a few ltd companies, x company director and a sole trader in 3 other ventures, ltd is safe as debts and tax liabilities are the companys and not yours personally, unless a personal guarantee has been signed.

If you dont pay tax then you are not making any profit, this is a fact! 

Be very careful though as if you are investigated HM rev will look into all your finances and you will have to prove where the money is coming from to pay for your lifestyle.

 

[happy mondays]

As long as you keep your accounts quite straight your accountants bill whether ltd or sole trader is mainly based on turnover. Ltd accountancy fees are IMO about 20% higher than sole trader. Any one paying just a few hundred quid a year for ltd or sole trader has a very cheap accountant or has a very small turnover.   

[happy mondays]

totally agree with ian, i had a very big profit this year and still not paying tax thanx to my accountant, and all above board before you ask, woop woop.

My two posts have had plenty of views but no replys 

I'm confused Derek, a big profit? how do you pay for your mortgage, food, car and utility bills then, if your not paying any tax then your not earning any £'s.

So you cant have made any profit. 

[Ian Gourlay]

It is all very confusing

I thought if you were a Ltd Company  and the  company supplies you with a car your tax code is adjusted which means you have to pay more tax through PAYE

If you make no profit you cannot pay a dividend so the potential tax saving is  not worth having

IF you can find a lease company that supplies equipment vans cars   to newly formed or short life Ltd companies without a directors guarantee   that could be a benefit if you do go down tube and enables you to buy new vans and all the latest equipment to boast turnover ie rug plant, hard floor equipment waterfed poles hire extra staff etc without personal worry as if company did go down tube you buy it back as a sole trader  orr form another company if you are not sent to prison

[Ricky M]

professional cleaners/restorers sloshing out over ltd/sole/taxes etc !

 

titter titter 

off to Alton Towers on a marketing exercise ( all claimable I think  )   

[Mike Halliday]

Ricky..... but that's the point!! a marketing exercise at Alton towers including the accommodation the night before would be a legitimate business expense.

for the last 6 years I have attended the connection cleaning show in las Vegas, My wife & i are  there again in 4 week, the full trip is claimed as a legitimate business expense we don't skimp on any part of it and it cost a small fortune but My accountant (who is very..very strict) never bats an eyelid about it as he knows the purpose of the trip is business.

my son has started working part time for our company  he takes out our other guy and they both  deliver leaflets ..... he gets paid but more important  he  has to drive our car to get to the area. As he is only 17 this  made the insurance premium go through the roof  but we had no choice he needs to drive the car so this is a genuine business expense

I could give some other example how genuine business expenses can enhance my families life

I'm in a favourable position as my wife earns a good income so has the disposable income to run our household so  our company can runs at a very low profit,

i think some people need to have a good relationship with their accountant and just ask them for advice on how to spend their money

[robert meldrum]

Anyone who is unsure about the benefits of operating as a Ltd company should read Mike Halliday's post and read it again..............

Take note..........you MUST find an accountant you can chat to and who will offer you BEST ADVICE but it's up to you to ask the right questions.

If you wish to be included in local authority / health board / etc tendering it's advantageous to be Ltd. They wont tell you this but it's the case.

[John Kelly]

Don't understand what Mikes post has to do with being limited. Business expenses are business expenses regardless of the business status.
If you are making money you pay tax. You can reduce the tax you pay by various legal expenses. However you still have to have money left to live and invest so that money is taxable.

[Ian Gourlay]

Im not convinced you can do what Mike says

Yes you can claim A % of the extra Insurance Policy  But you have to proportion the car use

[Steve Chapman]

Don't rely too heavily on an accountant either , if you get investigated by HMRC , you are solely responsible not them, and you won't see them for dust,

I've seen this happen on a few occasions, accountants take no responsibility for what they advise you, your stop expected to make good judgement, and the inland revenue are no fools, they know what you need to live on !

Steve

[kinder clean]

All your customers will be paying an extra 20% and your residential customers can't claim vat back.

Until you reach the threshold, in the current climate, raising your prices by 20% might not be a good move.

Paul

[AshWhite]

Kinder, you're confusing becoming a ltd company with being VAT registered. You can still be a ltd company without being VAT registered (until turnover reaches £75k iirc)

[kinder clean]

Yes I am,  I always thought you had to be VAT registered to be a LTD company.

I've leart something today.

Paul