Side Business Help

[Itconsult]

Hi

I’m currently employed paying PAYE 40% tax payer.

I’m looking to setup a business on the side for consultancy: I have a few clients invoicing around 1k per month.

What is the best way to set this up? Sole trader? Ltd?

Obviously want to pay as little tax on this as possilbe

Thanks

 

[DWS]

Best way would be for you to contact a few local accountants and have a chat about your business, most will offer a free initial consultation and then you can decide from there.

 

[fantheflames]

It's really up to you, OP!

Sole trader is simple to set up and manage. You'll pay NICs on your profits if you meet the threshold. May be more tax-efficient for small businesses with lower profits.

With LTD, it does offer limited liability protection - big plus! It does require more administrative responsibilities, such as annual accounts and corporate tax returns. Again, might be more tax-efficient for higher profits!

I'd speak with an accountant first, who can assess your individual situation and provide with you better feedback on this. But it's your choice which way you go.

Best of luck!