Company director and self employed

[ptf]

I was self employed for 27 years as a flooring installer, and in the last 6?years been running a mobile carpet shop.
I have now opened a flooring shop (bricks and mortar) and have set up as a ltd company and ceased trading as a sole trader.
I was running the shop but as it's got so busy I am out doing what I do best, fitting flooring. What I want to do is re register as a sole trader and invoice my company for the fitting work, as do other fitters I use. I would not take a salary from the shop, only dividends. I would not only invoice the company but also existing customers that still call on my old mobile business, so I would not work exclusively for the ltd company.

Thanks in advance

 

[Philip Hoyle]

What's your motivation for thinking of doing that? If you're thinking of avoiding VAT registration then it probably won't work - google "VAT disaggregation" which is where HMRC can treat both businesses as the same for VAT if they aren't truly separate stand alone businesses.

 

[ptf]

Nothing to do with vat, shop is registered and I was registered as a sole trader and have no issue with it, if needed.
Thinking about it, I was looking at the getting paid regularly for my fitting, as I used to, but in the end I expect it would cost me more in tax, as I would not be taking as a dividend, which I am assured is the most tax efficient way. It's still early days as a ltd company, and am planning on taking dividends every quarter, if funds allow, I suppose it's a case of getting used to it really.
I think I have just answered my own question. But any views/opinions would be welcome.

Thanks

 

[Newchodge]

You can pay yourself under PAYE, as a company director. The amount you should pay to be most tax efficient will depend on your circumstances. Are the other fitters you use self employed or employees of the limited company?