Stick As Partnership or Go Ltd - 2nd Opinions Sought

kevr6384

Free Member
Nov 2, 2007
45
0
HI,

Sorry to ask a common question again but i have included all detail rather than just a do you think ltd or not etc !

I run a convenience store as a partnership with my fiancee although she is a business partner in namesake but not drawing a salary from the shop as she also works elsewhere:

We lease our building have no debts or overdrafts and our only borrowings are the credit accounts at our main suppliers which are all paid on 7 day terms.

The reason we are looking at going Ltd is mainly to investigate whether we (or I) would become more tax efficient on that basis ?

We have an accountant and produce monthly accounts and i have taken advice from them on this but as always would like to seek other opinions both from a professional perspective and personal perspective.

I appreciate it is hard to give advice without full details so i will outline summary figures from 2011 / 2012 accounts for you to peruse !

Turnover £895k

Gross Profit £130k

Nett Profit £47k

Im on a standard Tax Code

For 2011/2012 year i took a income on my SA of £49k (£2k non deductible expenses IIRC)

I am expecting 2012/2013 Net Profits to be in the same ballpark figure give or take £2k

We have a light commercial vehicle at present that is on a contract hire to us and has minimal personal use and i think may be 95% attributed to the business.

Thoughts and opinions please ? And if you need anymore info please ask !

Thanks Again !
 

MyAccountantOnline

Business Member
Sep 24, 2008
15,240
10
3,321
UK
myaccountantonline.co.uk
On the face of it there may be a saving in NI but your accountant will be best placed to advise you.

I second that.

Your accountant will be fully aware of your circumstances and all relevant factors and really is the best person to give you advice.:)
 
Upvote 0

Latest Articles

Join UK Business Forums for free business advice