Limited Quandry

[TechWatch]

Hi, I hope that some kind souls may be able to advise me, I sell bits and pieces online, mostly my own stuff, however the nature of the business for whom I work means that a lot of technical equipment is soon to be scrapped.
Most of this is still serviceable, quite high value (in the thousands of pounds) and freely available to me.
I plan to continue to be employed, but by selling it online, most of the proceeds are profit and therefore fully taxable, I need to find a financially pain free route!
I read that the first 10k profit of a limited company is tax free, is that true?
My operation would have no employees, no purchases, just sales, (possibly the expense of 1 room in the house for admin). Would the tax return be straight forward?
Is there a software package that would compile limited company returns, or perhaps even Contractors Admin Support Companies.
Can anyone suggest a good site 'incorporation for dummies' please?
Many thanks in advance.

[MyAccountantOnline]

I read that the first 10k profit of a limited company is tax free, is that true?


No sadly not - not anymore.


My operation would have no employees, no purchases, just sales, (possibly the expense of 1 room in the house for admin). Would the tax return be straight forward?


If you intend to run your business as a soletrader you could try to complete your own tax return if you really want to, but if you opt for a limited company in my professional opinion an accountant is a must to make sure you get it right.


Is there a software package that would compile limited company returns, or perhaps even Contractors Admin Support Companies.


Do you mean company accounts? If so yes but none of which are really suited to non-accountants. Most software to produce limited company accounts is for accountants - you need to know the requirements of the Companies Act etc to use them. I am of course bias as an accountant but for the money it will cost you are best advised to pay for professional advice and support - its money well spent and not always as expensive as people think.


Can anyone suggest a good site 'incorporation for dummies' please?


I suspect it isnt quite what you want but this might help - http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.l1=1073858805&r.lc=en&topicId=1085161962

[elainec100@cheapaccounting]

Here is a quick guide :

Limited Company - Do you know what you’re getting into?

Down load from here:

http://www.cheapaccounting.co.uk/mailsltdcoguide.pdf

Hope it helps.

[KM-Tiger]

... I am of course bias as an accountant but for the money it will cost you are best advised to pay for professional advice and support - its money well spent and not always as expensive as people think.

As a non-accountant may I reinforce that.

Your risk is that you could be paying £k's more tax than you need to. Rule of thumb is that the accountant's fee will be less than the tax you save.

Do find out about incorporation as it *might* be the best tax avoidance route, but don't do it without professional support or it'll likely end in tears.

And depending on the customers for this 'technical equipment' you should consider VAT registration or not. Again an accountant can advise on this.

[PaulCCS]

I concur with the above. I've muddled through doing it myself but if I'd had the cash I'd have got an accountant involved in my business from day 1...