to the s/employed amongst you,i've been thinking for a couple of years now wether to make my business a ltd company as a way of protecting myself /family & possesions from litigation,i've been trading for 30 years with no problems[other than slow& bad payers] i'm concerned that my book-keeping may become more onerous,aswell as more accountancy fees + bank charges that i've never had to endure,how did other members adjust to the change if any.
- Thread starter nickk
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BrokenBiker
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i am a sole trader considering the same move so would be interested also to see the replies
rtbcomp
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If you're going into business with someone else - LTD!
Because you need more detailed accounts as LTD it imposes a discipline. You do get some protection, but if you're financing a company via a loan or overdraft the bank will want security and this could very well be your home. You will not be immune from any criminal proceedings.
You don't need an accountant, you do need a bank account.
One downside is that your accounts are open to public scrutiny.
Because you need more detailed accounts as LTD it imposes a discipline. You do get some protection, but if you're financing a company via a loan or overdraft the bank will want security and this could very well be your home. You will not be immune from any criminal proceedings.
You don't need an accountant, you do need a bank account.
One downside is that your accounts are open to public scrutiny.
brightspark
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have a word with your accountant and they will advise u on the best way forward .only u knows what turnover u make 
thats what u pay the sharks for / err i mean accountants
thats what u pay the sharks for / err i mean accountantsCompoSimmonite
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If you are making decent money then consider ltd company however if just a living wage then sole trader. Mate didn't agree with my advice and set up a ltd company. Cost him a LOT of money and ended him in court as he couldn't pay his council tax. He subcontracted to another company who stalled in paying his "company" then went bankrupt / started up again the next day. In the end he was told he was due nothing from the assets of the bankrupt company as he was an employee / director of his own company whereas if he was a sole trader then he would have been a preferential creditor and received most of what he was owed.
Like others say get proper advice - maybe talk to the specialist at Citizens Advice.
Paul H
Like others say get proper advice - maybe talk to the specialist at Citizens Advice.
Paul H
BrokenBiker
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very informative, in staying put as a sole trader after reading compo's post, i have already had one 'company' claim bankrupt and try not to pay me. Not that in judging but it was a local indian restaurant that is still trading, albeit under a different name
But even if those accounts are wrong no one will do anything about it!
This is the worst part of business. How companies are allowed to do this is beyond me. I am owed 40k by a Guy who is hiding behind an array of ltd and Phoenix companies. I have been told that trying to get the money out of them will result in me having a lot of court fees they wont pay as they will just close the limited companies that are involved. AND I wont see the money.
BrokenBiker
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the guy that ran my welding course was owed something like 78k for various jobs for a boat yard and they shut shop and then started up again a few weeks later. He has been fighting it for 4 years now with no end in sight
That doesn't sound correct - if he had been an employee, he would have been a preferential creditor, but even as a sole trader, he would still have been SOL as far as my interpretation of things goes...
If your turnover is less than £6,500,000 then you file abbreviated accounts.
Which show pretty much nothing.
My company pays for a credit checking service and I queried why there was so much missing from the reports.
The told me this. So I said about getting the copy from companies house and was told we can get that for you. So I asked for a sample and had one emailed straight over.
There's bugger all in it.
Basically shows assets, fixed and tangible, and creditos and debtors. Which is essentially what you need to know whether a company is about to go and will be unable to pay it's debts.
Even if it does have any worth, as soon as the liquidators go in, any money left soon gets gobbled up as they charge £400 + per hour for a paper monkey. The highest I've seen on comapnies that have gone bust owing us money has been £1750/hr for a senior accountant.
Which amounts to theft in my book..
Which show pretty much nothing.
My company pays for a credit checking service and I queried why there was so much missing from the reports.
The told me this. So I said about getting the copy from companies house and was told we can get that for you. So I asked for a sample and had one emailed straight over.
There's bugger all in it.
Basically shows assets, fixed and tangible, and creditos and debtors. Which is essentially what you need to know whether a company is about to go and will be unable to pay it's debts.
Even if it does have any worth, as soon as the liquidators go in, any money left soon gets gobbled up as they charge £400 + per hour for a paper monkey. The highest I've seen on comapnies that have gone bust owing us money has been £1750/hr for a senior accountant.
Which amounts to theft in my book..
sparkysy
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Nickk
I was self employed for ages set up a Ltd company 5 years ago and am now wishing I had stayed SE! There is a lot of bs with being Ltd we have to be vat registered too and it's a pain in the a@se as well and cooperation tax too! It is your call but my experience has been should of stayed se!
I was self employed for ages set up a Ltd company 5 years ago and am now wishing I had stayed SE! There is a lot of bs with being Ltd we have to be vat registered too and it's a pain in the a@se as well and cooperation tax too! It is your call but my experience has been should of stayed se!
the snooper
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it should be pointed out that vat and corporation tax is only applicable if you cross the threshholds
the snooper
getting older by the day
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you can always deregister and go back to self employed
the vats no problem i've been registered for 25 years & its been a bonus much more than a hassle,funny as i've customers that are ltd but not vat reg.
the snooper
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depends on turnover
wow that sounds risky,suppose you divorce....
brightspark
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your still entitled to half go limited and go bust u own jack sh...it and take everyone 2 the cleaners and spend it
then tell everyone its making u ill 
not as ill as the person thats done 20 grands worth of work 4 u though and cleaned him out and made him bancrupt 