How to switch from director to sole trader?

[hich]

I have been teaching Yoga and charging clients as a limited company of which I'm half shareholder and director for 6 years.
I would like to switch to sole trader.
What are the steps involved?

1. my company has a business bank account
2. I have been filing self-assessment with HMRC every year. My revenues were always small and so never had to pay tax on either the company nor on my director salary.
3. I have missed NI contributions over these years.

 

[Scalloway]

You should use a personal bank account for your self employed business and issue any invoices in your own name.

Paying voluntary NI contributions for your missed years.

Voluntary National Insurance

National Insurance contributions you can choose to pay when you have a gap in your National Insurance record.

www.gov.uk

Was your director's salary so small that you did not get credited with NI contributions even though you did not pay any?

 

[hich]

You should use a personal bank account for your self employed business and issue any invoices in your own name.

Paying voluntary NI contributions for your missed years.


Was your director's salary so small that you did not get credited with NI contributions even though you did not pay any?

It's not clear what is the correlation between how many years you NI contributed to the total max state pension that one might get?
Comparing that vs the £1000 you get for the Lifetime ISA

Not sure what's more beneficial. The question is how to find out.

Director salary is/was like £5k / year....

 

[Scalloway]

Not sure what's more beneficial. The question is how to find out

I would suggest speaking to an Independent Financial Advisor.

As well as adding to your state pension having an up to date NI record entitles you to certain state benefits.

 

[Russ Michaels]

dissolve your limited company at companies house.

Strike off your limited company from the Companies Register

How to close down your limited company by getting it struck off the Companies Register

www.gov.uk

you can however still trade using the same as a sole trader, but you need to remove Ltd from any paperwork, website, documents etc
Use a personal bank account

 

[Mr D]

I have been teaching Yoga and charging clients as a limited company of which I'm half shareholder and director for 6 years.
I would like to switch to sole trader.
What are the steps involved?

1. my company has a business bank account
2. I have been filing self-assessment with HMRC every year. My revenues were always small and so never had to pay tax on either the company nor on my director salary.
3. I have missed NI contributions over these years.

What does other half shareholder think of the idea of you leaving?
Sole director? Or someone else in the business too?