Going self employed. Sole trader or limited company?

carolineneal
carolineneal Registered Posts: 3
in General accounting discussion
Hi

Just looking for a bit of advice from both sides, sole trader or limited company.

For all those individuals out there that practice alone, are you trading as a sole trader or as a limited company?

What are peoples opinions on the best route....

I haven't set up on my own yet, its very much a thought bubble at the moment. I would be interested in hearing other peoples experiences and opinions on the best route to take.

Thank you to anyone willing to share their experiences. :)
RyanMIP

Comments

  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Depends what fits your circumstances. Treat it as you would if advising a client. Look at the individual circumstances involved and see what fits.

    We are a Ltd Co btw.
    Regards,

    Burg
    rwb
  • rwb
    rwb Registered Posts: 32 Regular contributor ⭐ 😼 ⭐
    Agree with Burg. What would you advise a client I your position?

    Also a Ltd Co...
  • amir
    amir MAAT, AAT Licensed Accountant Posts: 22 New contributor 🐸
    Hi
    i have been in practice for nearly two years and still sole trader. i found it easy because turnover is low and less time is required to do my own accounts. i get full benefit of personal allowances (which are not available to a limited company). offcourse i could pay myself wages under paye to reduce company profit but that is just extra work. as a sole trader you would pay NIC which a Company is not required to pay. I would say stay sole trader as long as your turnover is below £20,000. Hope this helps.

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