I asked that one when I flew over the threshold and had to go back to catch up. My slip left me having to find a substantial sum and caused some right headaches.
Don't go over the threshold and ignore it, thinking you can level it up the following month, it doesn't work that way. Once your going over you have to go LTD, on a rolling year (as has been said).
You need to have separate everything to do that, vehicles, kit and paperwork etc. I asked my accountant about all of the above because I just didn't know, even then they may take a dim view of the arrangement.
I wouldn't give them any reason to look into my affairs - anymore than necessary. I am sure people do do the wife & husband thing but too close for me.
The positive side of going LTD for me is that it is like a badge, that you have got to a point where the larger commercial expect to be dealing with other limited companies.
I don't know any sole traders on my works, there are subbies everywhere but the main contractors are all Limited.
Rob
