When are you better off as a Limited Company

[Ritchiec80]

Looking for advice on whether now is the time to swap from being a sole trader to a limited company as I've had a larger than expect tax bill. At what income level do you think a person is better off as a limited company?

 

[Mr D]

When you want to control your income?
When you want to get protection from legal action?
When you want to protect your personal assets?
When you want to reduce what you hand over to government?
When you want to call yourself a director?

Take your pick. There's probably many more.

 

[@aiteoconsulting]

There are so many variables to the question, but if you want a very broad rule of thumb, I would say it's worth evaluating beyond the £50k level.

 

[SteveHa]

There are many more reasons than simply the tax consequences, as indicated by Mr D. Do you have an accountant, and have you discussed with them?

 

[Mark T Jones]

Financially, you really want to talk to an accountant for dedicated advice.

However there are other considerations such as visibility, perception, admin etc.

 

[TODonnell]

When I had a wee LTD myself, it was so that I could sleep at night knowing that if some ... piece of work decided to sue me, I wouldn't 'lose the farm'.

Wan't likely to happen, didn't happen, but you can't put a price on peace of mind.

 

[Mr D]

I would advise to use some online calculators to compare the gross incomes. Maybe that would help you make a decision.

Hopefully they decided in the past 7 months.