[Steve_c]

What benefits and pit fulls did you guys find when converting to LTD? Thanks Steve.

[rscleaningservices]

Im not ltd but I think you pay more tax I would only go ltd if I had loads to lose but dont turn over 500,000 !!!!!!!

[Carl@Cwc]

less contributions total.
21% total if my memory serves me

[Frankybadboy]

thought you was already limited

[LBWCS]

you have to pay corporation tax at 20% but can draw dividends as a director which works out less tax overall.  Also need to consider things like employers liability insurance.  If your turning over 50k I think its recommended.

[H S and Son]

You're right he is Limited, but only in the looks dept. Have you seen him recently, his Dad put the swing too close to the wall.

[Frankybadboy]

You're right he is Limited, but only in the looks dept. Have you seen him recently, his Dad put the swing too close to the wall.

[rscleaningservices]

Rhine I turn over £100,000 & my accoutant has never said to me that I would be better off being a ltd company I always understood that if your a ltd company they cant take your assests I dont understand to much about ltd to be honest .....

[Steve_c]

You're right he is Limited, but only in the looks dept. Have you seen him recently, his Dad put the swing too close to the wall.

That's it mate, if i see you on my patch your a gonna. I cant help it if your are the ugliest window cleaner on the manor. Get off my patch 

[H S and Son]

That reminds me of a lunatic that knocked on my door yesterday, not only was he ugly but he smelt as well 

[Steve_c]

lol 

[sam125]

Less tax. You don't pay NI. Need to be earning over 40 000 roughly to make it worth while because accountancy fees increase dramatically and paperwork. If earning enough profit it will save you a fortune.

[Craig Trevain]

If your profits over 40,000 Go Ltd.

[g.brookes]

if you are limited you become separate from the business, meaning the business could fail and go bankrupt and you can walk off without any fines, bad credit or personal bankruptcy

[Craig Trevain]

if you are limited you become separate from the business, meaning the business could fail and go bankrupt and you can walk off without any fines, bad credit or personal bankruptcy

Not all the time... The directors/shareholders can still be made to pay.

[Frankybadboy]

one post says earning over 40000,another says profit of 40k which one is it.

[Craig Trevain]

one post says earning over 40000,another says profit of 40k which one is it.

Profit because that's when your tax as a sole trader raises to 40% turnover means nothing...

[LBWCS]

one post says earning over 40000,another says profit of 40k which one is it.

you can go ltd at any amount of turnover/profit. its when it becomes worth your while to save tax that its best for you. A balance between accountants fees and savings have to be weighed up. as every business is different, advice from accountants is recommended.   perhaps some of the ltd guys might tell us why they went from sole trader to ltd?

[poleman]

Im Ltd and good for tax! if you wont to go back to self employed you have buy your own business back!!!! as you are classed as an employee!!!

[Sean Dyer]

Rhine I turn over £100,000 & my accoutant has never said to me that I would be better off being a ltd company I always understood that if your a ltd company they cant take your assests I dont understand to much about ltd to be honest .....

i understand you can make yourself and other ie wife , child directors of a ltd company & pay yourself under the NI bracket to avoid paying PAYE and NI and then draw the rest (about 30 k a person tax free in dividends

THe only tax paid is by the company at 20% might be 21 ? in corporation tax


So you are better off by 9-10 % (might be a bit out) compared to sole trader. but - accountancy fees go up and you have to be careful about the dividends you gotta have meetings and pay them with reciepts etc etc , there isnt a great deal of difference in it financially anymore ,but the main thing is that if your business goes tits up owing money to creditors you can dissolve the company and it owes them not you making your personal assets safe , as a sole trader if this happens the liability is personal.... so its prob not an issue in our business