RE: FN-FORUM: soletrader + limited company

date posted 10th August 2004 21:14

Hi Rob
< I'd just like to know if it is feasible to have a limited company and
delegate work from your limited company to yourself as a sole trader...>
No, I don't think so somehow. IANAL etc etc but believe that you would
almost certainly be classified as an employee and the limited company
expected to operate a PAYE system.
Do yourself a favour and get PCG's Guide to Freelancing - free of charge
from the website at www.pcg.org.uk - which explains the different options in
some detail. It also has a bit about the new non-corporate distribution rate
(NCD) announced in the last Budget. If you want to read about that in its
full glory, with worked examples, get yourself a copy of the latest
Freelancing Matters by signing up at
http://www.surveymonkey.com/s.asp?u=88268574468 (if you are a PCG member you
don't need to do this - you will receive one shortly).
And don't forget that the other option, if you can partner with someone, is
that of a Limited Liability Partnership (LLP) which gives you the benefit of
limited liability whilst allowing you to operate on a self-employed basis,
much like a sole trader. An LLP is tax transparent, and is much easier to
administer than a limited company, in my humble opinion. Whilst some
accountants say that you pay marginally more tax this way, I've not yet seen
one include in the equation the fact that you don't pay company car tax as a
self-employed person.
Hope that helps - good luck.
Regards

Lindsay