Hi Ken, just found you on youtube-excellent videos!! With the recent budget completed, it would be really helpful if you could do a video on 'is it worth moving from s sole trader who is VAT registered to a Limited company'. Obviously I would expect a far better title than that😃 Cheers Ken
Considering starting my own comic book/ collector shop in Wales. There's nothing like it local to me. Listened to this with a notebook 😂 thank you for everything
Thanks so much ken! I'm in the process of starting my small business & your videos come through on the right time for me! Love them. Thanks a million for educating so many on they journey to becoming independent! ❤
Thank you for such detailed information Ken! I was wondering whether it would be possible to change the set up of your business i.e., if you set up as a sole trader and later want/need to become a limited company, is it possible to transition in this way? Thanks!
Good stuff, however if you're earning 50k in your day job, presumably setting up as a limited company means you're paying 25% corporation tax plus 33.75% on dividends meaning unless you want to put it all in a pension you'll be better off being taxed at 40% as a sole trader? (Assuming you have minimal expenses)
The 25% Corporation Tax rate is for companies with profits over £250,000. Most SMEs will be below that number. It remains at 19% for profits under £50,000 and tapered for profits between £50k and £250k. Putting money into Pensions is ofcourse very attractive given one can now contribute up to £60k a year per person. Plus there are many other benefits to using a limited company such as limited liability, business name protection, allowable expenses, VAT reclaim, etc. But the choice of Limited Company vs Sole trader will really depend on the individual and their current personal circumstances.
We know the legal and tax requirements gets updates, so where do I look to make sure I'm updated and still compliant? I know theres the GOV website but theres so many information and links to go on and I dont know which one.
Can you switch from sole trader to ltd company if you change or mind or believe that a different legal entity would be an advantage at a certain point of your journey?
Thank you for the video! One question: when do I register? I haven’t made any money yet, so I feel like I should register once I start seeing some money
Do I need to pay VAT if I register for VAT but my revenue is under £85K? I want to start a online clothigng business. Buying from wholesalers and sell online. Wholesalers will only let me buy products if I have a VAT registration.
Hi there, thanks for sharing. I have been self employed for a while but haven’t been quite successful and I’m thing of starting a different business perhaps going into Tenders from the uk Council. I’m wondering if you have any advice.
I'm a bit lost on the best way to go about my situation. I'm in full time employment ( under 50k ), I also started making a bespoke items a few years ago as enjoyment but over the last 5 months I'm really starting to get noticed and getting busy. I'm running this from home and no interest in employing anyone. I've not registered the business yet because HMRC said I needed to turn over £1000 at the time I looked into it. I'm a point now where I need to register but totally confused about the tax and what I need to do.
Thank you for such an informative video - just what i was looking for! 🙏 I wanted to ask, I just started a small art business and want to go down the sole trader route, but register trademark and VAT separately. Is this okay/a good thing to do? I want to be able to reclaim VAT I pay for resources that go into my art production, or is that not how it works?
Hello Ken , i just stumbled on your video online while i was researching about starting my limited company. My question is about visa restriction as a health and care worker. Can I open a business while on this visa? Thanks for your reply.
hopefully you got your answer by now but just incase or anyone else passing by this comment i *think* he means ensuring your business is registered with HMRC and Company house (if an LTD)@@PoiJonesy
Great video. Im going the sole trader route but i still want to protect my business name so that its available when i decide to switch to a limited company in a year or two years time. Is there any way I can protect my business name from now while still being only a sole trader?
OK thank you. I'm actually starting a pressure washing company and I plan on placing a large order on Monday of all the equipment which will be quite expensive. Will I benefit from registering as the sole trader before I make this purchase to get tax benefits or anything from buying it through the business or it won't make any difference? Hope that question makes sense
Iam 55 years old, i work full time, and i will like to make extra income by selling handmade jewelry online.Please i would like to know if i have to pay taxes and register for this extra income.I'm verry grateful if you can help me with this question. Thank you so much!🙏
Yes, anything you earn over the first £1k will attract tax. However, this shouldn't put you off. Still do it. Tax is just part of doing business and you only pay it on profits not income (revenue).
What other questions do you have about starting your business? Comment below.
Hi Ken, just found you on youtube-excellent videos!! With the recent budget completed, it would be really helpful if you could do a video on 'is it worth moving from s sole trader who is VAT registered to a Limited company'. Obviously I would expect a far better title than that😃 Cheers Ken
Considering starting my own comic book/ collector shop in Wales. There's nothing like it local to me. Listened to this with a notebook 😂 thank you for everything
How’s the comic books going
Replying in case you reply to the other guy
Just what I needed! God can speak to you through TH-cam! 😂
Thanks Ken!
Indeed! 😀
This was amazing! Really needed this for guidance. hoping to start my business end of 2023!
Awesome! Shout if you need some more help. We work with other beginner entrepreneurs over at Financial Joy Academy FinancialJoyAcademy.com
Very insightful and useful. Thanks Sir
Thank you, please make more videos like this going into details of these steps video by video x
You are awesome, really informed me the best way doing the right things for my business.
Happy to help! 😊
Unbelievably valuable/helpful content. Thank you!
Cheers, Carl 👊🏾. Please share with others
Thanks so much ken! I'm in the process of starting my small business & your videos come through on the right time for me! Love them. Thanks a million for educating so many on they journey to becoming independent! ❤
You're absolutely welcome, Razwana ❤️
@@TheHumblePenny May Allah bless you immensely ❤️🙏
Synchronicity! The videos came to me by sheer luck too!
Thank you Ken. You’re a legend
Thank you so much.
You're welcome!
Thank you, I’ll continue to study
(Subscribed)
Heyy! Thanks for these videos, just came across your channel. Could you do a video for sole traders too?
Thank you for such detailed information Ken! I was wondering whether it would be possible to change the set up of your business i.e., if you set up as a sole trader and later want/need to become a limited company, is it possible to transition in this way? Thanks!
Thank you! Ofcourse you can.
Do you need to be operational before applying for ISO accreditation?
Good stuff, however if you're earning 50k in your day job, presumably setting up as a limited company means you're paying 25% corporation tax plus 33.75% on dividends meaning unless you want to put it all in a pension you'll be better off being taxed at 40% as a sole trader? (Assuming you have minimal expenses)
Would love to hear this answer
The 25% Corporation Tax rate is for companies with profits over £250,000. Most SMEs will be below that number. It remains at 19% for profits under £50,000 and tapered for profits between £50k and £250k. Putting money into Pensions is ofcourse very attractive given one can now contribute up to £60k a year per person. Plus there are many other benefits to using a limited company such as limited liability, business name protection, allowable expenses, VAT reclaim, etc. But the choice of Limited Company vs Sole trader will really depend on the individual and their current personal circumstances.
Hi I just open a business and want to be sure about business taxes and how to declare it do you have any recommendations on how I can go about it
What if the business wil be done online can you register it and if you wil be doing it on your own
Yes you can. Our business is online too
We know the legal and tax requirements gets updates, so where do I look to make sure I'm updated and still compliant? I know theres the GOV website but theres so many information and links to go on and I dont know which one.
Can you switch from sole trader to ltd company if you change or mind or believe that a different legal entity would be an advantage at a certain point of your journey?
Yes you can
Thank you for the video! One question: when do I register? I haven’t made any money yet, so I feel like I should register once I start seeing some money
I'd do it from the start. However, you don't need to. You can do it when you start trading.
Do I need to pay VAT if I register for VAT but my revenue is under £85K? I want to start a online clothigng business. Buying from wholesalers and sell online. Wholesalers will only let me buy products if I have a VAT registration.
Hi there, thanks for sharing. I have been self employed for a while but haven’t been quite successful and I’m thing of starting a different business perhaps going into Tenders from the uk Council. I’m wondering if you have any advice.
I'm a bit lost on the best way to go about my situation. I'm in full time employment ( under 50k ), I also started making a bespoke items a few years ago as enjoyment but over the last 5 months I'm really starting to get noticed and getting busy. I'm running this from home and no interest in employing anyone. I've not registered the business yet because HMRC said I needed to turn over £1000 at the time I looked into it. I'm a point now where I need to register but totally confused about the tax and what I need to do.
Probably best to start as a sole trader and if things really take off, register a limited company.
Thank you for such an informative video - just what i was looking for! 🙏 I wanted to ask, I just started a small art business and want to go down the sole trader route, but register trademark and VAT separately. Is this okay/a good thing to do? I want to be able to reclaim VAT I pay for resources that go into my art production, or is that not how it works?
Hey 👋🏾. You're welcome. Yes, you can be a Sole Trader and also register for VAT.
@@TheHumblePenny thank you for answering! 🙏
Hello Ken , i just stumbled on your video online while i was researching about starting my limited company.
My question is about visa restriction as a health and care worker.
Can I open a business while on this visa?
Thanks for your reply.
Does your visa say you can't start a company?
@@TheHumblePenny I don’t see anything like that ,the restrictions is with 20hrs extra work.
Nothing to do with business on the visa page .
You forgot property licensing xx
Thank you for contributing this :)
Just starting off my business, should I register for a VAT?
No. Do so if you expect to hit £85k in annual revenue.
@@TheHumblePenny thank you, In one of your videos, you mentioned to register with tax man does that apply to the Vat tax or something different? 🙌🏽
hopefully you got your answer by now but just incase or anyone else passing by this comment i *think* he means ensuring your business is registered with HMRC and Company house (if an LTD)@@PoiJonesy
Great video. Im going the sole trader route but i still want to protect my business name so that its available when i decide to switch to a limited company in a year or two years time. Is there any way I can protect my business name from now while still being only a sole trader?
Thanks! You can trademark it. www.gov.uk/how-to-register-a-trade-mark
OK thank you. I'm actually starting a pressure washing company and I plan on placing a large order on Monday of all the equipment which will be quite expensive. Will I benefit from registering as the sole trader before I make this purchase to get tax benefits or anything from buying it through the business or it won't make any difference? Hope that question makes sense
Iam 55 years old, i work full time, and i will like to make extra income by selling handmade jewelry online.Please i would like to know if i have to pay taxes and register for this extra income.I'm verry grateful if you can help me with this question. Thank you so much!🙏
Yes, anything you earn over the first £1k will attract tax. However, this shouldn't put you off. Still do it. Tax is just part of doing business and you only pay it on profits not income (revenue).