I think given lower corporation tax rates versus personal taxation this would normally be a no-brainer.
I know there are other pro/ cons particularly more paperwork, public accounts and less flexiblity on taking money out of the business but Im still not clear on best way to move forward particularly as a car purchase/ lease decision is complicating matters.
So my questions are:
1. Before I speak to an accountant, where's best place for more info and the best caluclator for sole trader vs limted company taxation?
2. Given that I need say £2.5 k a month for personal outgoings can I do that with a £11k salary and rest monthly or quarrtely dividends?
3. Car Purchase or Lease - Currently Im considering PCP for a new car...but wondering which would be best if I go limited? Seem like leasing is £125-150 a month more (given below) but maybe tax advantages outweigh that?
- £15k deposit/ part ex on £40k car and 10k of that is on a credit card for 4 years at 0%
- 130 CO2 emmissions so will qualify for 18% capital allowance.
- appoc 15,000 miles a year (around 10,000 business)
4. I currently on FRS for VAT but Im told its likely this may not be worth continuing with for forthcoming tax year.