Trading As

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spurschic1@yahoo.com
spurschic1@yahoo.com Registered Posts: 94 Regular contributor ⭐
Hi all,

I have a trading as company that the owner has never taken cash from as it was a side line to his full time job. He now wanted to start taking a wage as he is working for himself. What is the best way for this to be done? Would it be the same concept as a Ltd company?

Thanks

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    "Trading as" just means the business name is different from the registered name, e.g. Joe Bloggs t/a Monkey Tights (sole trader) or Bloggs Business Ltd t/a Monkey Tights (limited company)

    I'm not sure what you mean as a "trading as company."

    If it's a limited company, it's just a limited company, so treat it the same as you would a limited company.
  • spurschic1@yahoo.com
    spurschic1@yahoo.com Registered Posts: 94 Regular contributor ⭐
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    Sorry to clarify it's a sole trader
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    If he's a sole trader he is taxed on his profits, he can't pay himself a wage. He can take drawings, but as he is the business, this doesn't affect his tax bill, it just affects his cashflow.
  • spurschic1@yahoo.com
    spurschic1@yahoo.com Registered Posts: 94 Regular contributor ⭐
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    Great thank you!
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