Phone : 07379 654139 or 01594 544456
E-mail : forestofdeanentrepreneurs@mail.com

Sole trader v limited company

Posted on

At the Entrepreneurs’ monthly “Meet and Learn” evening on September 26th Graham Wildin of Wildin & Co Accountants gave an insightful talk about setting up a limited company.

There are many factors to consider when facing this decision, but Graham highlighted two in particular:

  • The nature of your business, which may require the protection of a limited company’s limited liability status. This broadly means that – providing you act properly as a company director – your personal property is not at risk from things going wrong

 

  • The profitability of the business – for anything over £43,000 there may be financial benefits as companies only pay 19% corporation tax (shortly reducing to 18%) while the higher personal tax band for sole traders comes in at 40%

Graham added it is now easier to switch from being a sole trader to a limited company, and also back again if conditions change.

There are many other finer points to consider, including managing business shares and director dividends (the first £2,000 are tax-free), which Wildin & Co will be happy to discuss with local businesses and sole traders free of charge.