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Thread: Advice needed

  1. #1
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    Default Advice needed

    Hi everyone,
    just joined the Scaffolders forum and need some advice please.
    Has anyone ever changed from Sole trader to Limited company? If so, was it a good move? My company turnover has been getting bigger every year and I'm considering the move, will it benefit my company? Any advice would be greatly appreciated.
    Pete

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    what seems to be the problem pal if its not broke don't fix it,just make sure your assets are protected pal theres not a lot of benefits to be had now apart from if you go tits up the receivers can take everything you own.
    So in Hein site go ltd and always prepare for the worst scenario and if the shyzanhiezer its the fan set another ltd company up and transfer the assets just google up ltd c ompany or tell your accountant to get off his fat arse and explain it to you and get your moneys worth off him all the best scc

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  5. #3
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    There is another level of tax in the form of corporation tax. A pain in the backside, but it does open more doors for creative accountancy on other aspects. I wouldn't run a scaffolding company under any other circumstances.

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    Quote Originally Posted by steelcitycowboy View Post
    what seems to be the problem pal if its not broke don't fix it,just make sure your assets are protected pal theres not a lot of benefits to be had now apart from if you go tits up the receivers can take everything you own.
    So in Hein site go ltd and always prepare for the worst scenario and if the shyzanhiezer its the fan set another ltd company up and transfer the assets just google up ltd c ompany or tell your accountant to get off his fat arse and explain it to you and get your moneys worth off him all the best scc
    Thanks for the reply, accountant didn't offer much help regarding changing from sole trader to Ltd company. Can't make up my mind whether to expand or stay the same. Decision needed hence asking for advice.

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    make sure the accountant is able to undertake and submit the accounts - sometimes accounts must be submitted by charted accountants

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    OB is spot on wiv the chartered account statement - but other things to consider as well as the corporation @ 2% of gross is your audit costs & the higher accountantancy fees
    To change from sole trader to ltd means an additional set of cestation accounts which as well as the cost will mean as you pay your tax in arrears you will have to bring last years & any current liabilities up to date so instead of a rebate this would normally mean a large bill. Also kiss good bye to the freedom to use your bank account & cashflow as you see fit( which can also see a limit to future funding or morgages) as technically you will work for your company instead of being the company.which would also mean additional cost to your PLI as you are now an employee- you would also need to employ at least on paper a company secretary.
    This has 2 sides though because as an employee you could choose to pay yourself a minimum wage below the tax &NI threshold & so reduce your liabilities that way.& pay yourself top ip payments through your company directors dividend- but you try & get a morgage when your payslips tell a story of only earning £120 a week lol.
    People are also under the misinterpretation that if anything went wrong you could fold & walk away from it all - thats not entirely true, both suppliers & hmrc are a lot more savie now & there have been several cases where although the company may have no funds or assests as a director you could still be personally responsible if you had for instance whilst setting up an account with a supplier signed as a guarantor (which many insist on) - you wouldnt be able to start another company for quite a few years as well.
    some people prefer ltd others not both have their own pros & cons & have to be a personal choice but if your trying to lower your tax liabilities consider turning into a partnership with your wife if u have one you use her taxcode & split the liability but without actually paying her lol....personally my own feeling is if it aint broken dont try & fix it- to spend a lot of money to maybe save some may not always be the right thing to do- ive run as a partnership now for over 16 years & it works well for me.good luck in your choice & i hope this info helps
    Last edited by southernpoofter; 5th February 2015 at 11:49 AM.

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    Stay sole trader then at least no one can find out what you up to ha ha - unless u need reams of credit then go LTD

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    philliosmaximus (6th February 2015)

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    Most prudent accountants would advise you to go limited.

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    Excellent reply Southernpoofter, some of the things you brought up I hadn't even considered. I'll speak to my accountant about the pro's of a partnership as you suggested.

    ---------- Post added at 07:27 AM ---------- Previous post was at 07:26 AM ----------

    Thanks for reply. everything taken on board.

    ---------- Post added at 07:32 AM ---------- Previous post was at 07:27 AM ----------

    If we become a Limited company or partnership and everything goes tits up could they take our house? I've been told that as a Sole trader they could seize all our assets but could they do this if we were Ltd?

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    Default Sole trader vs Limited company

    I've had some interesting and helpful replies to my query but I'd like to know if we did decide to become a Limited company and the firm went tits up could the taxman seize our house and other assets? Apparently they can while we remain Sole trader.

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    steelcitycowboy (7th February 2015)

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