LTD or Sole Trader

[Brucey]

Obviously alot of pros / cons to both, but just wanted to feel what people set up as most?

I'm just as a sole trader.

 

[Roger Welton]

Sole trader here also.

 

[gasmanrob]

Sole trader going limited due to vat threshold being exceeded

 

[SimonG]

Sole Trader.

 

[Chalked]

Sole trader.

 

[townfanjon]

sole trader here

 

[TBServices]

Sole brother

 

[lame plumber]

no such thing as "just a sole trader" its us that creates an economy

 

[PlumbBobBob]

sole trader

 

[villa_tom]

I'm a sole trader, but I know a lot of chaps that are changing to ltd, it just seems like more hassle to me.

 

[bacon_sandwich]

Ltd and VAT reg, Mrs B_S likes her divi.. lol

 

[helpsy]

Sole trader

 

[Roger Welton]

Main benefit of going ltd as I'm aware are various tax wheezes when you get up towards the higher rate.

Any notion of debts not following you personally are long gone!

 

[erpkid]

Ltd here. No chance of losing your home if you get burnt. Just be careful if you go limited that you don't give any personal guarantees then you will have the risk of an individual with the overhead of a company.

 

[Mrs Tara Plumbi]

Main benefit of going ltd as I'm aware are various tax wheezes when you get up towards the higher rate.

Any notion of debts not following you personally are long gone!

Yes I think this is right if you are above higher rate of Tax level can be worth looking into.

We are Ltd.
I think there is not a lot in it and as far as I know it means we get to pay corporation tax many months later, after the financial year.
Whereas sole traders pay some Income tax in advance before end of tax year.
But then again we (Mr TP & I) are also employees so we do have to pay income tax & NI & employer's NI contributions monthly through the whole year.
So probably no benefit one way or the other.....

An the cost of assets can be spread over years (helping spread tax bills), I'm not sure if that is possible for sole traders - maybe it is?

In the long run there can be some tiny benefits in that the business is a separate legal entity. So it is possible to get a loan (secured against assets) in the name of the Ltd business that does not show up on your own personal credit record. - Even though you might guarantee these loans or they are secured on your business assets.

There is very little FREE credit, so most credit does have to be backed by directors guarantee so as said you can't think of it as a way of walking away from debts.