Limited or sole

[ptf]

I have read many articles on limited vs sole trader but still unsure if I am on the right method.
I was sole trader for nearly 27 years as a floor layer, then I expanded last year and took on a shop, with my wife running it, I wAs advised to go ltd, and had been thinking about it for a while anyway, night just for the tax benefit but also did not want to put any personal stuff at financial risk.
I have literally just finished the 1st year so as of yet have no true profit. I have used an online calculator to with an estimated profit. That said I was better off as ltd but it did not take into account the tax I paid on my wages.
I take a small wage of around £330 take home wage, my wife is just under £10k she pays no tax, and every month the company pays around £380 in tax and NI (paye) then take into account the additional accountant fee not sure if it's the best way.
I estimate a company profit of £50-60kin the first year. This is after all expenses apart from wages mentioned.
Can anyone help. My accountant still assures me I will benefit, especially in the years to come.

Thanks

 

[Scalloway]

At a profit of £50-60k in the first year you could save on NI payments. As a sole trader you would be liable for Class 4 NI of 9% of profits between £7,956.01 and £41,865. You could pay yourself £10,000 through PAYE, which would be deductible from profits, and take further sums as dividend, which would have no NI payable.

Plus the advantage of limited liability.

 

[Energise Accounting]

In a nutshell your accountant has given you the correct advice.

 

[Jeremiah@RHJ Accountants]

Both take out £10K which is tax deductible thus reducing corporation tax.

Then make your wife a shareholder (if she is not already?) and both take out dividends up to higher rate tax threshold currently £41,865.

Very tax efficient and your accountant can explain all this to you in detail.