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Tax when to go Limited.

When is beneficial for tax purposes to change from Sole Trader to Limited Company?

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New start up business. Currently, no earnings or tax payable. Not dependent on any future earnings. Currently, everything paid for by Bank of Mum & Dad!!. When would it be Tax beneficial for me to change from Sole Trader to Limited company? This with the understanding that I am aware of the related legalities and adddition record keeping involved with a company.  

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By DIPAK RAJGOR
06th Jun 2019 17:09

Any advice will be greatly appreciated.

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By Accountant A
06th Jun 2019 17:10

When your accountant, who knows about about you, your personal affairs, your business and your future prospects, tells you.

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By bettybobbymeggie
06th Jun 2019 17:37

With profits of c.£40k you are about £1k better off being ltd but you may find much of that taken by additional accountancy fees depending on your location.

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By DIPAK RAJGOR
06th Jun 2019 17:42

Hey thank you so much!

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RLI
By lionofludesch
06th Jun 2019 18:06

There are a lot of factors to be taken into consideration. Such as limited liability and whether you are up to dealing with the increased legislation and regulation that being a director of a limited company brings.

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Replying to lionofludesch:
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By Accountant A
06th Jun 2019 18:08

lionofludesch wrote:

There are a lot of factors to be taken into consideration. Such as limited liability and whether you are up to dealing with the increased legislation and regulation that being a director of a limited company brings.

I suspect that the OP is blissfully unaware of all of that and will remain so if he chooses not to take professional advice.

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Replying to Accountant A:
RLI
By lionofludesch
06th Jun 2019 18:25

Au contraire - I'm sure the OP knows it all.

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By Glenn Martin
07th Jun 2019 09:15

Its beneficial incorporating from day 1.

If you want to know why you have to pay for some advice

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Replying to Glennzy:
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By DIPAK RAJGOR
07th Jun 2019 10:16

Hi Glenn,
Love your "straight to the point" comment. Totally agree. Many thanks for your input.

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By frankfx
07th Jun 2019 12:09

How much would you willingly for pay for the advice required?

Would you pay £35 per hour?

Would you think the right advice from the right advisor would start at £195 per hour?

Oh do not forget VAT.

Btw car servicing and diagnostic costs may be a useful benchmark .

Only you can triage your intial needs.

The good advisor may have to start by dismissing your self-triage.

Then ,while scratching his head and stroking his chin , conclude that " it all depends ".

Do not be surprised at this.
Because your own / all business
is / are built on " it all depends " foundations .

The workers and businesses at British Steel , Honda at Swindon and Ford Bridgend know this full well.

Good, unhurried and considered advice invariably pays dividends or saves pots of money.

All this would have an impact ( positive) on the bank of mum and dad.

Happy days. Happy family.

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Replying to frankfx:
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By DIPAK RAJGOR
07th Jun 2019 12:25

Hi Frankfx,
You are a star! Thought of writing as a profession?

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