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Klean07

  • Posts: 3086
Any LTD companies on here?
« on: January 13, 2019, 07:34:05 pm »
I was looking at going LTD but would like to know if many on here are Ltd and what their views are about it.
kkleanwindowcleaning.co.uk

Spotfree

  • Posts: 40
Re: Any LTD companies on here?
« Reply #1 on: January 13, 2019, 08:07:50 pm »
I went LTD last August, I prefer it.

Pay ourselves 16k each per year and leave the rest there for 12 months, should see a nice pre-tax of about 20-25k after costs.

Gomo

  • Posts: 3018
Re: Any LTD companies on here?
« Reply #2 on: January 13, 2019, 09:21:01 pm »
I prefer it also.

Like to take have the separation.

Puts you in control of how you allocate salary and dividends especially if you have a partner/wife.






Kev Martin

  • Posts: 6317
Re: Any LTD companies on here?
« Reply #3 on: January 14, 2019, 05:52:27 am »
Limited deffo works for us
"Natural Stone Restoration Specialists" Tel: 0121 773 9129
www.tilinglogistics.co.uk | www.marblelife.co.uk  http://stores.ebay.co.uk/Tiling-Logistics

Soupy

  • Posts: 8037
Re: Any LTD companies on here?
« Reply #4 on: January 14, 2019, 06:07:06 am »
You don't need feedback, you need professional financial advice.

From an accountant.

Preferably a chartered one.
Quote from: martin_8_17
What once was hidden will be manifest.

cleaniac

  • Posts: 132
Re: Any LTD companies on here?
« Reply #5 on: January 14, 2019, 12:29:49 pm »
Yep as above.

There are so many tax advantages to going Ltd.

Going Ltd for me was the best decision. Me and the wife each get a salary and the business is the business, our wages are our wages and thats that.

Just a note about accountants, and payroll, bookkeeping ect. Make sure you use an accountant who are chartered, and if possible also experts in taxation.  The transfer of my sole trader business to the ltd company had a few tax implications and you must have good advice, expect to pay for it but it will save you alot of tax.

Id put having a good tax advisor and accountant as the most highest priority business expense next to paying taxes.

Im happy to recommend my accountants if you wish..

Dry Clean

  • Posts: 2376
Re: Any LTD companies on here?
« Reply #6 on: January 14, 2019, 12:50:54 pm »
Corporation tax is 20% and you will have extra accountacy fees and so on, cant see there being any real benefit to most if not all sole traders, but as Soupy said, get advice from an accountant.

The Jester of Wibbly

  • Posts: 1385
Re: Any LTD companies on here?
« Reply #7 on: January 14, 2019, 01:32:35 pm »
Is there a reason why you want to go LTD that prompted your interest?
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cleaniac

  • Posts: 132
Re: Any LTD companies on here?
« Reply #8 on: January 14, 2019, 03:25:23 pm »
Corporation tax is 20% and you will have extra accountacy fees and so on, cant see there being any real benefit to most if not all sole traders, but as Soupy said, get advice from an accountant.

Corperaton tax is 19 percent, and that's if you decide to keep a profit in the business. Nothing stopping you from investing the rest of the profit into the company by purchasing a van or equipment to the value of your forecast profits to show a net nill or small loss. You cold even buy more goodwill to the value of your profits to expand.

 The other bonus is corperation tax is completely the companies responsibility to calculate and pay,  its worked out by your tax advisors and you pay it 10 months later, with no payments on account to make either which is a real hurdle for sole traders.

You can get funding eaiser, if you can demonstrate a profitable business, it goes on the public record and you can sell shares of your company to raise funds.

You can borrow money from your company, and pay it back with interest which has tax advantages for both parties.

You are entitled to a dividend allowance, which is tax free.

Moreover the equipment, goodwill and assets of the company no longer affect you. Say you decide to sell off a round, well that belongs to the company, and if you were to sell off 30 grands worth of goodwill, you can draw down the funds through paye under tax threshold over a few years and pay no tax.

Its more flexible for expansion.

The list goes on and on.






Crystal-clear

  • Posts: 2575
Re: Any LTD companies on here?
« Reply #9 on: January 14, 2019, 03:33:03 pm »
Corporation tax is 20% and you will have extra accountacy fees and so on, cant see there being any real benefit to most if not all sole traders, but as Soupy said, get advice from an accountant.
Yes basically going Limited I feel should be for a business that's expecting to make a six figure profit. Or at least going in that direction  expanding

If you're making anything from 40 to £60,000 any tax advantages will get eaten up with accountancy fees. There are other benefits such as the company is a different entity. But from the way I see it if you make £100,000 profit after paying yourself a low salary and if you have very low living expenses then technically speaking you don't really need that sort of a salary to be taxed about £35,000. Instead you could leave it in your company and pay a low 17,000 corporation tax is going down 2% next year which makes you £18,000 better off.
The following year you may decide to buy a house and then at that particular time you might choose to give yourself a dividend payment. Obviously the tax will catch up with you eventually. But there's a difference between earning that amount of money and needing it you could also keep it in the company and invest it again
Basically
if you have big plans to expand Ltd is the way if you are happy how you are and you're earning above average earnings I would say it's actually not worth it. I would say on £60,000 profit potentially worth it and only if you're aiming to go higher
drip feeding your earnings is definitely an advantage not pay a bulk of tax in one go
Perhaps you want to go backpacking for 6 months
You can still pay yourself the low amount which is tax free.

Lee Pryor

  • Posts: 2068
Re: Any LTD companies on here?
« Reply #10 on: January 14, 2019, 03:41:28 pm »
Corporation tax is 20% and you will have extra accountacy fees and so on, cant see there being any real benefit to most if not all sole traders, but as Soupy said, get advice from an accountant.

Corperaton tax is 19 percent, and that's if you decide to keep a profit in the business. Nothing stopping you from investing the rest of the profit into the company by purchasing a van or equipment to the value of your forecast profits to show a net nill or small loss. You cold even buy more goodwill to the value of your profits to expand.

 The other bonus is corperation tax is completely the companies responsibility to calculate and pay,  its worked out by your tax advisors and you pay it 10 months later, with no payments on account to make either which is a real hurdle for sole traders.

You can get funding eaiser, if you can demonstrate a profitable business, it goes on the public record and you can sell shares of your company to raise funds.

You can borrow money from your company, and pay it back with interest which has tax advantages for both parties.

You are entitled to a dividend allowance, which is tax free.

Moreover the equipment, goodwill and assets of the company no longer affect you. Say you decide to sell off a round, well that belongs to the company, and if you were to sell off 30 grands worth of goodwill, you can draw down the funds through paye under tax threshold over a few years and pay no tax.

Its more flexible for expansion.

The list goes on and on.

Good post Mark
The best way to predict the future is to create it.

KS Cleaning

  • Posts: 2164
Re: Any LTD companies on here?
« Reply #11 on: January 14, 2019, 08:47:49 pm »
Corporation tax is 20% and you will have extra accountacy fees and so on, cant see there being any real benefit to most if not all sole traders, but as Soupy said, get advice from an accountant.

Corperaton tax is 19 percent, and that's if you decide to keep a profit in the business. Nothing stopping you from investing the rest of the profit into the company by purchasing a van or equipment to the value of your forecast profits to show a net nill or small loss. You cold even buy more goodwill to the value of your profits to expand.

 The other bonus is corperation tax is completely the companies responsibility to calculate and pay,  its worked out by your tax advisors and you pay it 10 months later, with no payments on account to make either which is a real hurdle for sole traders.

You can get funding eaiser, if you can demonstrate a profitable business, it goes on the public record and you can sell shares of your company to raise funds.

You can borrow money from your company, and pay it back with interest which has tax advantages for both parties.

You are entitled to a dividend allowance, which is tax free.

Moreover the equipment, goodwill and assets of the company no longer affect you. Say you decide to sell off a round, well that belongs to the company, and if you were to sell off 30 grands worth of goodwill, you can draw down the funds through paye under tax threshold over a few years and pay no tax.

Its more flexible for expansion.

The list goes on and on.
I hope you got your chartered accountant to post this for you...for 3.5k itís the least he could do🤑

SB Cleaning

  • Posts: 3071
Re: Any LTD companies on here?
« Reply #12 on: January 15, 2019, 07:17:24 pm »
Yep as above.

There are so many tax advantages to going Ltd.

Going Ltd for me was the best decision. Me and the wife each get a salary and the business is the business, our wages are our wages and thats that.

Just a note about accountants, and payroll, bookkeeping ect. Make sure you use an accountant who are chartered, and if possible also experts in taxation.  The transfer of my sole trader business to the ltd company had a few tax implications and you must have good advice, expect to pay for it but it will save you alot of tax.

Id put having a good tax advisor and accountant as the most highest priority business expense next to paying taxes.

Im happy to recommend my accountants if you wish..
what when your accountant charges you £3500!!

No ta ;D

Splash & dash

  • Posts: 993
Re: Any LTD companies on here?
« Reply #13 on: January 15, 2019, 07:22:41 pm »
Itís ideal if you are about to go bankrupt you donít loose your house or other assets 😂😂😂😂