what are the benefits to being ltd

[bloorino]

What if any are the financial benefits to being ltd instead of sole trader. This is my first year of trading, i started the company in april 2010. Their is only myself and an apprentice on the payroll.

This year i have forecast a turnover of around £100,000 to 120,000 go on the first 6 months of trading, i know this could change but we are booked up till end of feb next year.

By the way my company specialises in interior alterations (kitchens,bathrooms etc)

Any advise greatly received.

[bbbbb]

Have you read the sticky on the subject ?

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=60813

[Andrew @ PLA]

I'm sure there is a thread at the top of this section called Sole Trader v Limited Company (http://www.ukbusinessforums.co.uk/forums/showthread.php?t=60813) ;)

[MyAccountantOnline]

You may want to have a read here - http://www.businesslink.gov.uk/bdotg/action/detail?r.s=m&r.l1=1073858805&r.lc=en&r.l3=1073865730&r.l2=1085161962&r.i=1074460123&type=RESOURCES&itemId=1073789612&r.t=RESOURCES

With your predicted level of turnover if you havent yet got an accountant I really would be thinking about it now. You will probably find a good accountant will be able to suggest quite a few ways for you to save tax.

[Truemanbrown]

You could read this blog.
http://truemanbrown.blogspot.com/2010/09/age-old-question-sole-trader-or-limited.html

[elainec100@cheapaccounting]

The tax advantages are based on profit not turnover which is only relevant when it comes to vat registration.

Without knowing the projected profit then the specific tax advantages for you cannot be estimated.

Tax is not the only consideration though and the sticky gives a great summary of these.