Employed and starting additional business

[mediah01]

Hello
I am currently FT employed with a salary over £30K. I am starting a new business which I expect to turnover approx £60K in its first year with a profit of approx £50k. I plan to keep my current FT job. Would it be better taxwise to be a sole trader or form a ltd company?

 

[MyAccountantOnline]

Hello
I am currently FT employed with a salary over £30K. I am starting a new business which I expect to turnover approx £60K in its first year with a profit of approx £50k. I plan to keep my current FT job. Would it be better taxwise to be a sole trader or form a ltd company?

I'd be thinking of a limited company option - you'll be a higher rate tax payer with that level of income as a soletrader but atleast with a limited company you can choose to draw some of the company profits as dividends which have a slighly lower rate of tax. Its not a simple answer though lots of other factors to consider.

 

[mediah01]

Thanks for your reply.
I thought that might be the better option. What other factors would need to be considered?

 

[MyAccountantOnline]

Thanks for your reply.
I thought that might be the better option. What other factors would need to be considered?

This is quite useful to go through many of the main considerations - http://www.businesslink.gov.uk/bdot...05&r.lc=en&r.l2=1085161962&topicId=1077472554

and this - http://www.accaglobal.com/pubs/memb...or_booklets/public_practice_sector/644410.pdf

 

[mediah01]

Interesting quiz. Seems ltd will be the way to go. I noticed your company formation charge is £100. What does this entail?

 

[MyAccountantOnline]

Interesting quiz. Seems ltd will be the way to go. I noticed your company formation charge is £100. What does this entail?

Hi

Our fee includes -

• Setting up the company
• Supplying a printed hard copy of the Certificate of Incorporation
• Supplying a printed copy of the Memorandum & Articles of Association
• Supplying an electronic copy of the Certificate of Incorporation
• Supplying an electronic copy of the Memorandum & Articles of Association
• Advice and support regarding the incorporation
• Notifiying HM Revenue & Customs and completing form CT41G

You will find many online companies that will incorporate a company for less than £50. These are fine for people who know exactly what they are doing. We dont seek to match in any way these types of service, but what we do as Chartered Certified Accountants is give you advice and support in setting up the company, making sure everything is done properly, and getting you on the correct footing from day one.