Ltd anyone ?

[Diamond Pool Finishers]

Company Formation Name Search just been looking at these ,ANYONE on the forum an LTD or thinking of becoming one ?

 

[Dan]

I've been Ltd since about 2011. For tax benefits more than anything.

Used to be able to go Ltd to avoid mixing business finance issues with your personal finance situation.

Now anybody who gives tog credit will want a directors guarantee on their personal assets.

And you can't sell business assets for £1 to yourself in times of trouble and before you fold a company like you used to be able to. Annoyed me that loop hope did I'm glad they sorted that out.

So there's very little benefit these days other than a few K tax benefits etc

 

[PaulSmith]

Was ltd for years, now back to sole trader.

 

[Chalker]

I'm back to sole trader now , went limited 8 years ago and was told I would save £2500 tax. Accountant didn't mention his fees would go from£500 a year to£2500. Plus it was a nightmare to borrow money or open accounts.

 

[widler]

it's a windfall for accountants,they tell u it's the best thing to do to save money and quadruple there bill for more or less the same job ,robbing gits

 

[widler]

it's a windfall for accountants,they tell u it's the best thing to do to save money and quadruple there bill for more or less the same job ,robbing gits

Oh I'm not ltd, but a few of my mates are and my wife as well

 

[Tony73]

I'm ltd and pay £1500 a year to my accountant . But he does fantastic job , look after me, send me info about changes, new rules , remind me about things etc. So me happy :smilewinkgrin:

 

[widler]

I pay £450 and get £2500 back,my mate who earns more or less the same pays £2000 and what tax back he gets usually pays the bill

 

[Diamond Pool Finishers]

i do my own and always get between £2000----6000 back but been thinking of protecting myself with a LTD liability,instead of being personally liable for prob's better than losing your house .....!!!!

 

[Dan]

That's the thing though mate. Unlike years ago when that would stand true. These days if you owe either creditors as in suppliers, they'd have had a directors guarantee (so on your personal assets) and if you owe the tax man, you're still entitled to pay it even years down the line. The moment you make cash again.

So it doesn't wipe anything off when you fold a company that's in a bad shape.

Years ago you'd run a company, turn over loads of cash, draw it out and spend it on yachts, fold the company and never pay your suppliers or the tax man. And you'd just have a bad name for yourself and not much else.

As people got wise to it (and the VAT scam) so did the government and suppliers.

An age old Ltd company would have benefits maybe, but a new one would probably hinder you as it would have no credit rating etc.

Really worth speaking to 2 or 3 accountants not just one these days to get a good feel for what your actual business needs.

I found that I was paying too much tax as a sole trader, and if I went Ltd, even though the accountants fees went up a bit, the tax savings outweighed it by miles. I'm the type of guy that spends all the profit quite quick and can't save for long. I have to buy assets that I can sell in times of trouble moreso than build up a bank account. Trying to change that but it's bloody hard haha

 

[BoldreChris]

We're a Ltd too, mainly because I do some programming and project management contracts and the bigger companies won't deal with sole traders. It does also let us take money out as dividends - so effectively tax-free - as well as a salary. I pay about £700 to my accountant to check all my figures and submit the corporation tax return. The rest I do myself.

 

[Perry]

I have been ltd for the last 15years it been the best thing for me in the long run.

 

[Pebbs]

We're Limited, because as Chris says, main contractors will never entertain a sole trader. The downside is the accountants bill, its sick!

Pebbs