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Setting Up A Ltd Company...


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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.

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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.

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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.

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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 by Gaz_1989
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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.

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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.

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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 :thumbs:

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