Tax Tips: Trade as a Limited Company to Save Tax
22nd December 2008
Categories: What's New
Could You Save Money By Trading as a Limited Company?
Did you know that if you make more than £20,000 of profit per annum, then for tax purposes, you will almost certainly be better off by incorporating and trading as a limited company?
Although there are many other considerations when deciding whether to be structured as a sole trader or limited company - such as increased administration and the need for more formal accounts - there are definite tax implications. On £20,000 of profit you'd save over a thousand pounds in tax trading as a limited company - and clearly, the bigger the profits, the better the savings.
Read our new Toolkit article written by local accountants R A Hurren & Co and download an Excel sheet to enter your own profit figures to see how much you could be saving:
- Read the article Tax Guide: Sole Trader or Limited Company?
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- Calculate your tax savings by trading as a limited company
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If you have profits of over £20,000 you could save money by trading as a limited company. This Excel sheet allows you to enter your profit figures and see the tax payable as both a sole trader and as a limited company.
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