RE: FN-FORUM: Limited or sole trader

date posted 5th August 2007 09:44

Also most banks, etc. will require guarantees for overdrafts, loans, etc.
and you will have to guarantee these personally.

So if you do go bust because you've personally guaranteed these things, the
banks will pursue you for the money.

Limited companies are a good way work, but can work out to be costly as you
have to submit annual returns, etc.

Being self-employed you have to pay approx. 22% PAYE plus the normal NI
rates, being a limited company director you should pay yourself the minimum
monthly salary so you pay either a very small or no PAYE, plus your employee
and employer NI and then you'll have to pay 19% (at the moment) Corporation
Tax.

I work as a limited company, plus I registered for VAT even though I don't
have the turnover to force me to register for VAT, Being both a Ltd and VAT
registered gives me an added bonus in the markets I work in as some
companies will not employ freelancers who are not.

You basically have to work out what is better for you in terms of finance
and time as being a Ltd and VAT registered involves quite a lot of extra
work.

Regards
Colin

-----Original Message-----
That entirely depends what the debts are.

Owe the taxman and they can bypass all that limited company rubbish and
charge you directly...



> *From:* [EMAIL REMOVED] [EMAIL REMOVED]
> *To:* "FN-FORUM / [EMAIL REMOVED] [EMAIL REMOVED]
> *Date:* 4 Aug 2007 21:00:43 -0000
>
> I should go Ltd. It doesn't cost much to register and if you go bust
> and you are Ltd then they can only take things belonging to the
> company to pay the debts off and not your house for example.
>
>
>
> Pam