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!
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Do you pay yourself a wage?
D
Dougs Third Go
sole trader here, happy to keep it that way 🙂
Yeah that's the way. Company vehicles and tools etc. I get a bit stuck with mine I rarely need either.
C
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.
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.
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).
M
MTiler
Sole Trader and I intend to stay that way.
Maybe if I started this malarkey many moons ago It mightve been different.
Maybe if I started this malarkey many moons ago It mightve been different.
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.
There are similar tiling threads here
- Colin from Accounts
- Tilers Talk - Any Country
