Pinky1976 started this topic @ 16:14 on 21/01/2008
RE: Sole trader or limited company? - holistic therapy
apr | 21/01/2008 07:56 PM
Hi Pinky,
There are pro's and con's of sole trader vs ltd co. Personal liability is diferrent as is taxation. How much money do you expect to make?
Andrew
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RE: Sole trader or limited company? - holistic therapy
Pinky1976 | 22/01/2008 07:27 AM
Hi Andrew,
Thanks for your reply. I want to make up for that 16k as soon as possible. I shouldn't have a huge amount of costs, so I guess gross profit would have to be 18-20k.
And then I would like to be able to quit my current job altogether, so ideally another 10-12k on top of that at least at some point.
RE: Sole trader or limited company? - holistic therapy
Pinky1976 | 28/01/2008 03:36 PM
Can anyone else give me any advice?
Thanks!
RE: Sole trader or limited company? - holistic therapy
Pineway | 28/01/2008 04:17 PM
Hi
Due to you still being employed by another company of which you will pay tax from and you expect to earn at least £16,000 via your company then for tax reasons trading via a limited company might be a good option.
Why? Well for your part time job you pay tax via PAYE and you may use all your personal tax allowance.
Now on your Limited Company you can take dividends at £34,600 Tax free per year
Which saves you a lot of money in tax; however you will attract incorporation tax on any profits made.
Where if you are to do this via a partnership you would pay tax on the total income for both part time employment and your company.
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RE: Sole trader or limited company? - holistic therapy
Pinky1976 | 01/02/2008 02:48 PM
Thanks for you replies. I've decided to see a couple of accountants to discuss this: I have the feeling that setting up an LTD might be a good ides.