Sole trader vs ltd company taxes?
Hi, I currently operate as a sole trader (courier) but I'm thinking of starting a LTD company. I'm trying to work out the benefits tax-wise.
At the moment I charge vat on deliveries at 20%, and I pay back 10% to the tax man on the flat rate system. (So effectively I pay 10% vat)
On LTD company - I think - I pay the vat, but 20% corporation tax, which means I would be better staying as a sole trader. Is this right?
Thanks for any advice in advance, Rob.
- TavyLv 78 months ago
Don't do it. You only need a Ltd if you have a load of money with several businesses. You will be filling in more tax forms than you would believe.
Stay as you are.