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complictaed question about Tier 1 Entrepreneur

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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complictaed question about Tier 1 Entrepreneur

Post by citizenship » Tue Oct 21, 2014 11:41 am

hello Everybody
The Tier1 Entrepreneur Guidance says that you can work as a sole trader and/or as a company. the question is Can you close the company on which you have granted the visa and start work as a sole trader? No company Business Bank account ,No company name on invoice etc just your Name (sole trader).

Its a very complicated immigration question and i cant get my head round it. The Law says you can work as a sole trader, as a company and also as partnership but most people told me I Have to stick to the company, work as a company and do all the hassle about Taxes etc.
why cant we just forget about the company and work as sole trader, No company name involved!!

Anyone who is an expert in these issues, please comment.

hham1224
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Re: complictaed question about Tier 1 Entrepreneur

Post by hham1224 » Tue Oct 21, 2014 3:41 pm

My advice for you is from the accountant's point of view.

Assuming you were running your business through a ltd company and planning to close it. Have you thought about the assets in the ltd company, what will happen to them i.e. your investment, bank balance etc.? If you withdraw funds then there will be tax implications and more importantly if a corp. tax return has been submitted, you may have to pay any tax due if you have claimed certain reliefs.

If you plan to start as a sole trader after you close your company, you may have to pay extra income tax and NIC. Most of the people do other way around.

I do not think HMRC or HO have any problem as long as you intend to do a business based on your business plan and invest £50000 or £200,000 whichever is applicable.

You must use you name along with your trading name on your invoice 'T/A ABC' etc. if you are not using ltd company.

Sole traders also use business account and if you are running a business you must have a business bank account. You will be risking yourself if bank finds out that you are using you personal account as your business account.

I hope this helps.

cancerian
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Re: complictaed question about Tier 1 Entrepreneur

Post by cancerian » Tue Oct 21, 2014 7:16 pm

I think Hammad is very right being a Chartered Accountant , and yes you will have tax implications which u need to discuss with an accountant.
You can work any way you like, whether as a sole trader or as a partnership or as a company. But these all have certain tax and liability implication. The law dont stop you to do business anyway.
And being accountant i must say that if you run your business as a sole trader you will end up paying more tax as compared to company. You will have unlimited liability being a sole trader and in a patnership.

sonheaven
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Re: complictaed question about Tier 1 Entrepreneur

Post by sonheaven » Wed Oct 22, 2014 2:36 am

Most ppl get a limited company rather than as a sole trader because, among other things, of the limited liability, which means that your liability is only limited to your investment in the company and your personal assets will not be used to repay any liability

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