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Sole trader would be my suggestion. Ltd tax advantages aren’t what they once were due to dividend tax hikes. Then there are the accountants fees. If you’re renting expensive premises/need loans for equipment then ltd is better.
@kingpin_479 I have all the equipment needed already so that wont be a worry, and I still live at home so am flexible with cash(not renting).
Thanks for your reply.
@MZ Gorgina I’d still do sole trader then as time goes on see what the numbers look like, then speak to an accountant to see if there are any other benefits to going down the ltd route for your situation.
Since you’re taking contracts from your current employer, definitely look into IR35 first, that’ll shape everything else. If it’s caught inside IR35 as a sole trader you lose most tax benefits anyway. If outside, limited company usually wins once profits clear about £30-35k, letting you take dividends instead of salary
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Hello, I am looking to start my own business in March next year but I have one question, Should I start as a sole trader or a limited company. I already have my client lined up so the work will already be in place as I will be taking contracts from the company I currently work for. I was wondering this for tax reasons and how I would go about paying myself, I still live at home with my parents therefore i will be saving as much as I can and am not fussed about paying myself a big wage every month. Another factor would be costs of setting up the business and paper work. What can i expect from both?
Happy to answer any of your questions to help me come to a conclusion on this. Thanks.