tiger started this topic @ 15:06 on 15/03/2006
Hi,
Would appreciate advice - particularly from any accountants on the board (James Smith, you're advice always seems pretty good!) as to how easy it will be and how it is likely to affect my business if I downgrade from ltd company to sole trader.
This is because I need to save money because my business is not doing brilliantly, I also want to simplify paying myself a wage - how do I do this for both sole trader and ltd and what are the differences?
What are the likely ramifications for my business image? I have a website and advertise in local payments etc. So far quite a few people have asked if I'm VAT regd but no one seems to care what my company no is.
RE: Advice on moving from ltd company to sole trader
James Smith | 15/03/2006 03:40 PM
Tiger,
Its really not all that easy to go from a ltd co. to a sole trader, as you can get tripped up on a few tax issues - there aren’t all the nice relief’s available going the other way that there are on incorporation.
I would suggest you speak to the accountant who advised you set up the company, and let them deal with it as they will know your personal position a lot better than I.
Paying yourself as a sole trader is easy – you just take it out, no messing about with dividend declarations or PAYE like you have to at the moment.
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT