In October 2020 I set up a Ltd company for my Bootcamp Sessions I'm going to run. I haven't started it yet due to Covid, but now realise it may have been a mistake setting up as a Ltd company instead of a Sole Trader as I'm only going to be earning around 10k annually. How easy is it to change from Ltd Company to Sole Trader? and would I be able to keep my company name ( obviously without the "Ltd")
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If the company is still dormant don't start trading and notify HMRC that you are self employed. They will issue you with a Unique Tax Reference number ( UTR)
It’s bound to be said sooner or later so I’ll get it out of the way - your biggest mistake was probably trying to go it alone without an accountant.
To help you out, though, if you have so far done absolutely nothing you can forget about the company. There is nothing to ‘change’ and you just need to register with HMRC as self-employed. You can pretty much call your business what you want. If you’re precious about the name, you can hold on to the dormant company to keep the name should you (or your accountant) decide in future that a company might then be an appropriate trading vehicle. Otherwise, you can just ask Companies House to strike it off.
If you need help in doing any of the above - get an accountant.
if the company has not traded and there is nothing 'in it' you can complete form DS01 and pay a small fee to close the company.
Will I have to inform Companies House or liquidate my limited company?
No.
Not if you don't want to.
And you're prepared to keep up with all the filing.
Agree with what the others are saying. You definitely do not want a company for that level of income. You can reply to HMRC to tell them you are not going to trade if you are worried about them. And then you do nothing. You will get threatening letters from Companies House in 14 months from incorporation, but see the 5th Para, it will say 'if you no longer want the company you do not need to do anything'.
And in the meantime, google CWF1 and register online for self-employment. So it's all very easy and straight forward. But you probably want to consider an accountant for the tax returns of course.
After all, trading as a sole trader, what could possibly go wrong ? Be very careful before you do anything further. Limited liability is not something to be discarded casually.
Presumably as a personal trainer you would want lashings of insurance whichever way you trade?
If I keep my limited company but leave it dormant, can I then become a sole trader with the same company name without “LTD” at the end of the name?
Aye.