What Type Of Company Are You?

[Dan]

Just wondering what the makeup of companies is that we have on the forum. Member support and sponsors can vote too. This isn't just for the tilers.

Please give the reasons by replying to the thread.

 

[White Room]

Just a sole trader, tried many years ago having guys work for me but that was on the plastering side...spent more time putting work right.

 

[Dan]

I'm limited at the moment but seriously considering going back to sole trader.

 

[demi34]

Solo trader

 

[Qwerty]

Sole trader but considering going ltd as branching out

 

[judge]

Sole trader.Would like a labourer to shout at (lol) but prefer to worry about one wage instead of two

 

[andy8758]

I had to start limited, coming as I did from a house renovation start. But frankly it's expensive and unnecessary for my tiling work.

 

[Dan]

Yeah I'm kinda thinking it's an overkill for my business these days.

 

[andy8758]

I think most limited companies are started because accountants recommend it.

And, of course, that has nothing to do with the fact that its more income for the accountant...

 

[Dan]

I got a tax relief of some sort or something if I remember rightly. I'm not sure that's applicable still now mind.

 

[andy8758]

Well I must admit we have managed to make a loss for the last 6 years, which means no tax. But the accountancy loss is down to me buying a decent van, and it losing value. We have not actually lost a penny. So, yes, its a great tax relief situation, but I have to budget about £100/month for the cost of accountancy. And I still have to do most of the paperwork!

 

[Dan]

Well I must admit we have managed to make a loss for the last 6 years, which means no tax. But the accountancy loss is down to me buying a decent van, and it losing value. We have not actually lost a penny. So, yes, its a great tax relief situation, but I have to budget about £100/month for the cost of accountancy. And I still have to do most of the paperwork!

Do you pay yourself a wage?

 

[andy8758]

Yes. It varies to be honest, and I have a weakness for tools and equipment. But I pay personal tax of about <removed as in public forums>.

 

[Dougs Third Go]

sole trader here, happy to keep it that way

 

[Dan]

Yes. It varies to be honest, and I have a weakness for tools and equipment. But I pay personal tax of about <removed as in public forums>.

Yeah that's the way. Company vehicles and tools etc. I get a bit stuck with mine I rarely need either.

 

[Concrete guy]

Limited Company for a number of reasons.

It's a very tax efficient way to draw income.
Limits liability if something catastrophic occurs.
When more than one person is involved in the company it's a better way of handling it.
Our larger customers would expect to deal with a Limited Company. (we have one very large customer who wouldn't deal with us if we weren't limited.
Our accountancy costs are saved multiple times over and I've never seen it cost any more than being a sole trader - but I do most of the book keeping and VAT returns, our accountant checks what I do, gives us advice and makes all the submissions for us.

 

[andy8758]

sole trader here, happy to keep it that way

In my experience. That is the best thing to be as a tiler, unless you are looking to secure large contracts (unlikely for most of us).

 

[MTiler]

Sole Trader and I intend to stay that way.
Maybe if I started this malarkey many moons ago It mightve been different.

 

[radim]

Soletrader here.
Got laborer workin for me when a lot of tiles need to be moved to upstairs bathrooms...

 

[Dan]

Limited Company for a number of reasons.

It's a very tax efficient way to draw income.
Limits liability if something catastrophic occurs.
When more than one person is involved in the company it's a better way of handling it.
Our larger customers would expect to deal with a Limited Company. (we have one very large customer who wouldn't deal with us if we weren't limited.
Our accountancy costs are saved multiple times over and I've never seen it cost any more than being a sole trader - but I do most of the book keeping and VAT returns, our accountant checks what I do, gives us advice and makes all the submissions for us.

Why wouldn't a company deal with you if you were not limited? That seems a bit archaic.
I've had plenty of cash off blue-chips and it's never been questioned. I'm Ltd now but even when I was sole trader I dealt with them.

Not grilling you here, just wondering what their reasoning was.

 

[Concrete guy]

Why wouldn't a company deal with you if you were not limited? That seems a bit archaic.
I've had plenty of cash off blue-chips and it's never been questioned. I'm Ltd now but even when I was sole trader I dealt with them.

Not grilling you here, just wondering what their reasoning was.

It's a big UK company, currently FTSE250 but knocking on the door of FTSE100.

Fortunately for us they are very ethical in the way they do business, no Tesco syndrome at all, but they like things done a certain way which is fair enough. We are supplying a lot of product though, this isn't a small contract.

 

[Dan]

It's a big UK company, currently FTSE250 but knocking on the door of FTSE100.

Fortunately for us they are very ethical in the way they do business, no Tesco syndrome at all, but they like things done a certain way which is fair enough. We are supplying a lot of product though, this isn't a small contract.

Did they ever give an actual reason? Or just say 'we only deal with Ltd companies' type thing?

I've dealt with Travis Perkins for years, FTSE100. And my biggest client is Google, in some sense. Perhaps not taking the money off them that you take off your one mind. But nobody's ever questioned whether I'm Ltd or what. Never had a credit check done either. Yet that's meant to happen quite a bit I think.

 

[Concrete guy]

I'd not questioned it to be honest, it was just explained it made things a lot smoother. I think much of this is to do with background checks as companies by their very nature are required to declare publicly a lot more information than sole traders.

 

[Dan]

That'd make sense.

And most credits are against the directors these days anyway, not the Ltd company as a whole. So I guess they can see who's giving a Ltd company what credit etc. But sole trader they'd be in the dark with that sort of jazz I guess.