When to go to LTD company?

[workingNOMAD]

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Have been in the game four years now and seen income steadily increase and now well into the 40% tax band as a Sole Trader...approaching the VAT threshold.

I was wondering whether there is a magic figure that once you cross you should consider going Ltd company in order to reduce your personal tax bill?

I also see the potential benefit of leaving money in the business for another tax year and then drawing on it if things go quiet, something you cannot do as a sole trader.

Anyones' experiences of this much appreciated!

[tomj]

Yeah its nothing but a royal pain in the arse.

Run off to the Cayman Islands before its too late lol

[workingNOMAD]

Something I have considered!

[Mogga]

You should speak to an accountant and have them explain how beneficial it is at various income levels.

[tomj]

Yet again Mogga is the voice of sense and reason :tup

[Mogga]

Yet again Mogga is the voice of sense and reason :tup

LOL you know I only suggest accountant because I can't remember how to explain it myself! :-)

[hrbs]

Have been in the game four years now and seen income steadily increase and now well into the 40% tax band as a Sole Trader...approaching the VAT threshold.

I was wondering whether there is a magic figure that once you cross you should consider going Ltd company in order to reduce your personal tax bill?

Hi

Download my spreadsheet at http://hrbs.biz/id?313 , it will illustrate the potential tax and NI savings for a range of profit and salary levels.

The article explaining why you achieve the tax savings and other aspects to consider is at http://hrbs.biz/id?10101 .

Regards

Keith