Best time to go Limited?

[JamieAllen]

Hi

Reviewing my current situation and just wondering out of interest if there is any benefit of going limited from sole trader now rather than after the start of the new tax year? Taking into account the end of another tax year I just dont want to miss the opportunity. I have discussed all the pros and cons with an accountant but now just wondering if transferring to a ltd co at any particular time can have an impact on the amount of tax I pay as a sole trader?

Thanks.

 

[elaine@cheapaccounting]

This really is something to ask your accountant as they will have all of your info and can provide a specific answer for your circs rather than just generalisations which is all you will get on a forum. Good luck

 

[JamieAllen]

Thanks Elaine. No, the accountant doesn't have all of the info as I haven't appointed them, it was just an initial chat last year. I'm still looking around for an accountant so was just trying to get a general idea at this stage as to whether sooner rather than later was a good idea in terms of tax generally.

 

[MyAccountantOnline]

Thanks Elaine. No, the accountant doesn't have all of the info as I haven't appointed them, it was just an initial chat last year. I'm still looking around for an accountant so was just trying to get a general idea at this stage as to whether sooner rather than later was a good idea in terms of tax generally.

It really does depend on many factors and you really would be best to contact an accountant direct letting them have all of the relevant details so that you can get some proper specific advice.

I'd be happy to help if you want to get in contact.

 

[elaine@cheapaccounting]

Thanks Elaine. No, the accountant doesn't have all of the info as I haven't appointed them, it was just an initial chat last year. I'm still looking around for an accountant so was just trying to get a general idea at this stage as to whether sooner rather than later was a good idea in terms of tax generally.

Ah right - Ok.

Have a start by reading the sticky on sole v limited then it is down to tax savings, current and future profit expectations with start up costs being considered as well as what you were doing before.

Loads to consider - so best to have a chat with an accountant. I can get one of ours to have a chat if that helps. The devil is in the detail.

 

[Davem1234]

The timing of incorporating your business may well affect your personal tax liabilities, including the level of your payments on account for the next tax year.

If you have made losses in your self employment you may wish to wait until you have made profits in the future to avoid losing these losses.

If you are making small profits then it may not be worth trading as a company yet.

Even if you are making decent profits then there may be other factors which mean that now is not the right time to incorporate.

Conversely now could be the time but it doesn't have to be at your year end (although sometimes it can be tidier), you can incorporate at any time.

If you want more specific advise then please PM me.

Dave