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Ltd or sole trader

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Sushil-ACCA
Diamond Member
Posts: 1234
Joined: Wed Apr 02, 2008 1:47 pm
Location: Wembley Park

Ltd or sole trader

Post by Sushil-ACCA » Mon Apr 16, 2012 6:09 pm

i'm thiru. my Tier-1 visa expires on 2013 may. currently un-employed. planing to start teaching SAP & oracle To show my earnings. in which way i can do it weather should i go for self employed or open a limited company. which way i can minimize my total expenses. what are all the necessary things need to do. pl z advise me. which is the best option so that i can follow from now on wards. awaiting for your reply and meet you.


Ltd company

Advantage

Better business presentation
21% tax
no personal liability

sole trader

advantage
if income required <10000 follow sole so cost effective


Thiru - u can go for Ltd to save lot of taxes

Lucapooka
Respected Guru
Posts: 7616
Joined: Sun Aug 14, 2011 9:30 am
Location: Brasil

Post by Lucapooka » Mon Apr 16, 2012 8:41 pm

This is not an immigration issue. Speak to your accountant about what is appropriate for your situation. Furthermore, I doubt anyone here can comment on what is more or less appropriate without knowing your income level and how you garner this?

Manka10
Senior Member
Posts: 714
Joined: Wed Feb 22, 2012 9:11 am
Location: 127.0.0.1

Re: Ltd or sole trader

Post by Manka10 » Mon Apr 16, 2012 9:54 pm

Sushil-ACCA wrote:i'm thiru. my Tier-1 visa expires on 2013 may. currently un-employed. planing to start teaching SAP & oracle To show my earnings. in which way i can do it weather should i go for self employed or open a limited company. which way i can minimize my total expenses. what are all the necessary things need to do. pl z advise me. which is the best option so that i can follow from now on wards. awaiting for your reply and meet you.


Ltd company

Advantage

Better business presentation
21% tax
no personal liability

sole trader

advantage
if income required <10000 follow sole so cost effective


Thiru - u can go for Ltd to save lot of taxes
whats going on here ? question & answer in the same post ?!?
Manka

John
Moderator
Posts: 12320
Joined: Wed Nov 10, 2004 2:54 pm
Location: Birmingham, England

Post by John » Mon Apr 16, 2012 9:55 pm

Sushil-ACCA, you really are an ACCA? And have been working as such in the UK?

Corporation Tax 21%? Really? Even a quick look at this HMRC webpage will show that is no longer the case.

Also as regards "no personal liability", the plan is what? Not to draw any salary? Or to draw a minimal salary so as not to incur any NI liability?
u can go for Ltd to save lot of taxes
How?
John

AccountantMatthew
Member of Standing
Posts: 301
Joined: Mon Jul 04, 2011 4:20 pm
Location: London Town

Post by AccountantMatthew » Thu Apr 19, 2012 7:48 am

I'm gathering that a thiru has written a question and is now being thrown open(?) On that basis I'll stick my fourpenneth in...

It's not really for us to decide for you thiru. Whether you go the sole trader or limited company route is ultimately down to you. There are advantages and disadvantages to both and there are many factors which make people decide - both financial and non-financial. It's good that you are asking for advice but you'll need to do your research. A good place to start is on the Government website BusinessLink....

http://www.businesslink.gov.uk/bdotg/ac ... 1073858805

I would add to this is to think beyond whether you can save paying tax by incorporating even if this is ultimately the deciding factor. Understand your responsibilities for each scenario too.

All the best.

Oh and it's definitely 20% Corporation Tax unless you have a fantastic year!

http://www.hmrc.gov.uk/rates/corp.htm
Please don't private message me or e-mail me for free personal advice - you are just wasting your time writing something that won't get answered.
Anything written here shouldn't be construed as being formal advice given in a professional capacity.

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