Gaz_1989 9,539 Posted May 11, 2013 Report Share Posted May 11, 2013 Has anyone on here got their own ltd company? If so can you help me with the below please? Hypothetical scenario... Say I do a job and get paid £1000, and that's the only job I do all year. I don't draw a wage but I claim £500 of that £1000 in expenses for fuel, subsistence, clothing, and rent of a building which is my own property and doesn't belong the company. At year end when I come to do my tax return, what does the company pay tax against? The £1000 income or the £500 profit? Thanks. Gaz. Quote Link to post Share on other sites
desertbred 5,490 Posted May 11, 2013 Report Share Posted May 11, 2013 you would only pay tax on any profit after expenses also if you have a company secratary and yourself took a minimal salary this would be covered by your personal tax allowances all depends on the turnover less expenses then a taxable profit would have to be made. Quote Link to post Share on other sites
Gaz_1989 9,539 Posted May 11, 2013 Author Report Share Posted May 11, 2013 Ok great thanks. At the minute it's only going to be small time and I will hopefully take most of the money out in the form of expenses. I have got a full time day job so don't have any tax free allowance left. Thanks. Quote Link to post Share on other sites
baw 4,360 Posted May 11, 2013 Report Share Posted May 11, 2013 Why make it ltd, why not be a sole trader? Lot of paperwork with ltd companies. Quote Link to post Share on other sites
nothernlite 18,260 Posted May 11, 2013 Report Share Posted May 11, 2013 sole trader is easier ltd company more hasstle Quote Link to post Share on other sites
Gaz_1989 9,539 Posted May 11, 2013 Author Report Share Posted May 11, 2013 I plan to employ other lads eventually and pay them by PAYE. And also would like to be able to pay myself dividends at some point. Quote Link to post Share on other sites
desertbred 5,490 Posted May 11, 2013 Report Share Posted May 11, 2013 get yourself a good accopuntant and never make a profit 2 Quote Link to post Share on other sites
baw 4,360 Posted May 11, 2013 Report Share Posted May 11, 2013 Don't need to be limited to pay folk plus as long as you ain't run up debt, you can apply to be limited further down the road. Quote Link to post Share on other sites
Gaz_1989 9,539 Posted May 11, 2013 Author Report Share Posted May 11, 2013 get yourself a good accopuntant and never make a profit That was basically my plan mate Quote Link to post Share on other sites
Gaz_1989 9,539 Posted May 11, 2013 Author Report Share Posted May 11, 2013 (edited) Don't need to be limited to pay folk plus as long as you ain't run up debt, you can apply to be limited further down the road. Ok cheers Baw I will look into both but as a sole trader you pay tax on everything I believe. No good to me that. I can take most of the money out in expenses with what I will be doing. Edited May 11, 2013 by Gaz_1989 Quote Link to post Share on other sites
Fat-Ferret 857 Posted May 11, 2013 Report Share Posted May 11, 2013 The Ltd company idea will look better on paper - But a Sole Trader status would probably suit you better for now anyway Quote Link to post Share on other sites
Gaz_1989 9,539 Posted May 11, 2013 Author Report Share Posted May 11, 2013 The Ltd company idea will look better on paper - But a Sole Trader status would probably suit you better for now anyway That's part of the reason for wanting to go ltd mate, because it looks better. It's the security industry and first impressions are everything. Fancy paperwork and company logos can be the difference between getting the venue and not getting it. Quote Link to post Share on other sites
nothernlite 18,260 Posted May 11, 2013 Report Share Posted May 11, 2013 You going to do your repo man ? Quote Link to post Share on other sites
Gaz_1989 9,539 Posted May 11, 2013 Author Report Share Posted May 11, 2013 You going to do your repo man ? Haha not quite, just a few doors and events. Had my own venue for 2 years but they shut down when my licence expired so didn't bother renewing it. But I've got the bug again and have just landed a contract with a pretty big franchise so will be looking to employ 15-20 lads, more if I get an event contract aswell. Quote Link to post Share on other sites
nothernlite 18,260 Posted May 11, 2013 Report Share Posted May 11, 2013 You going to do your repo man ? Haha not quite, just a few doors and events. Had my own venue for 2 years but they shut down when my licence expired so didn't bother renewing it. But I've got the bug again and have just landed a contract with a pretty big franchise so will be looking to employ 15-20 lads, more if I get an event contract aswell. Good luck to you mate nothing better working for yourself 1 Quote Link to post Share on other sites
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