Article with more information: smallbusinesstoolbox.uk/starting-business/sole-trader-vs-limited-company/ Tide can set you up with a limited company and bank account - have a look at my review here: smallbusinesstoolbox.uk/tide-business-bank-account-for-me/
Magic video Andy. I wish I had seen your video years ago before setting up my limited company. My Accountant just assumed that I knew all of these things and it was a steep learning curve.
Update guys!! I have done loads of accounting this morning and got all my purchase invoices , bank statements , expenses etc together . It’s beeeeeeen so draining but getting there sometimes we see a mountain in front of us ⛰ and we stare at this mountain and worry ourself and we look up towards the mountain and it keeps growing bigger and bigger . But we only need to view that mountain . As smaller than you you are bigger than your mountain (fears, worries,anxiety, ptsd) and once your at the top of the mountain you’ll look back at your past self , and well wonder why we ever worried so much! To anyone else out there with ptsd anxiety 💜❤️💚🥳🚀
Great advice Andy. To anyone thinking of setting up a Partnership I would say do lots of research about how partnerships differ from sole trading/Ltd. company. I’ve been a director a number of times and am currently a partner. The legal basis for partnerships is a bit quirky, so you really need to understand it, especially about how partnerships can be dissolved.
thanks Andy. Really enjoyed that, very well explained. I operate as a Sole Trader but have formed (by accountant) an Ltd company so I'm ready if I needed, plus it stops anybody taking the name :-)
Oh god what have I done lol, Just started my limited company as I wanted to start as one ready for the potential (hopeful) growth, this video has gave me more concerns than I had lol
Thanks Andy! Can you advise on the potential issues faced if I operate a LTD company and take a wage whilst also being employed by others (not linked). What knock on will it have to my personal tax and would my employers be alerted (via tax codes etc).
Hi again Andy, I was just wondering if you have any info on whether there are any changes to filing tax returns for 2019/20 or is it the same as the previous year? Many thanks Paul
Hi, thanks so much for teaching all this, I would like to ask you I'm a freelancer copywriter what would you suggest me to open a limited company or a sole trader ? Please help me out with that. Thanks in advance.
Hi, very helpful easy to understand video(the lego helped alot). Is it possible to register a Limited Company, and then Freeze it to save all the accounting drama? The reason why is I am in an extremely tight financial situation, and it's early days, however I need that company name for branding reasons?
I'm about to start working with my friend in construction he's a sole trader but I want the flexibility of being able to work for an agency either lorry driving or traffic management if i need extra cash would i be better as sole trader or limited company. Great video
*I have set up a LTD company only to realize that it will not make any penny for the next couple of years. There is no business account set-up either. Do I still need an accountant? Am I screwed for nothing?*
I consulted for a movie some 15 years ago and it was produced in 2013. I have not been paid yet but want to explore this, however have just done the one consultation and the agreement was to be paid as a percentage after the movie release.. what would I register as and when - eg would I have to register as self employed for the day the consultation occured, or from raising the invoice, or from being paid?
If I have a paye job and also have a sole trader buisness. If I switch to limited does my allowances become separate? Currently they run together on self assessment and I pay tax regardless on my business as my allowance is at my paye job
Hi Andy, great video. One question, if I set up as a sole trader and then say in 3 years generate enough turnover to warrant making it into a limited co. How easy is it to upgrade as it were? Would I need to start a fresh as a ltd and desolve as a sole trader or is there a way of simply shifting the status of the business?
It's generally a case of winding down the sole trader business and starting up from scratch with the ltd. co. There's no easy way to transition that I'm aware of. So new bank account, new contracts, new invoices with co. details etc. 👍
@@SmallBusinessToolbox Ah ok thanks, that's really helpful and unfortunately what I expected. Also, you mentioned you don't need to actually register as a sole trader until the second year. Does the same apply when starting a ltd co, or does setting up a ltd co need to be done before bringing in money from a client?
Thank you this helps explain the pros and cons of both options! Currently debating the path I am going to take but info like this is really beneficial :)
Great Video!! I'm from Bermuda, a British Territory where would I pay taxes if I opened a LTD company in the UK, would I pay in my Country? We are one of those tax havens, no income tax here.
Hi Andy. I known you're spinning a lot of plates and you get asked a lot of questions. I started my business 3 years ago as a limited company straight from the get go because I was 'paranoid' about keeping my personal assets separate. However my annual accountancy bill is over £2000. That's profit I'm using! My annual profit is less than £20000. Should I change to sole trader or just find another accountant? I'm the director, sole employee, and a shareholder at the moment. Does a sole trader with PLI have enough legal protection for their own assets?
Hey Andrew, that does seem expensive. I'd normally pay around £600 for Ltd. company accounts for a business of that size. Depends how much you're getting them to do but if all they're doing is micro accounts £2k seems steep. £20k is a bit low for a ltd. co. - you'll probably not see any tax savings until you get to £40k+ but obviously there are other benefits as you say. I'd shop around for a cheaper accountant. 👍
@@SmallBusinessToolbox Thanks for the response, appreciate it. They do my company accounts and my personal tax returns (employee). I literally do nothing apart from sign stuff! I currently don't pay tax as an individual and the company doesn't benefit from a tax perspective. To top it all I've just had a letter from the ICO this morning stating I need to pay a data protection fee for my company. That was news to me. I think I'll look for an alternative accountant, especially as I'm not as 'green' as I was when I set up the company. Thanks again for the reply.
Hi just wanted to know if I pay for stuff for the business that I am setting up say April but yet I don’t launch the business untill august or September .would hmrc want to know income/expenses for that tax year when they ask for that information (when ever they ask) or would they only want to know from august ? And just show them invoices of stuff I’ve brought .? Also if I have one bank account for personal and business would I have to keep records for my personal expenses or just the business .?
Kelly you can claim for business related expenses prior to launching the business (I did it for mine for equipment I'd bought already) HMRC have details on this on their website so it's worth going and reading their relevant pages
Hi, I'm an Indian. I want to start my own Cosmetic company in UK. For foreign citizens how much minimum amount is mandatory to start UK Ltd company? Please suggest 🤔🤔 or Can I start sole proprietorship ?
Hi Andy. I opened a solo trader business account and they put it under my name and not my business name. What do I do to get my business name on my account? I am starting up as a photographer.
Hello, I'd like to ask some something Where could I look for a Accountant ? I'd live to become a TH-camr and be more active on some social media but what you could advice me the first one or the second one?
8.53.....Elon Musk (as an eg.) doesn't extract money from his company directly. He owns shares, and the value of those shares allows him to take out personal loans at preferential interest rates. He lives on the loans and so pays minimal income tax. I imagine a lot of other millionaires do the same. Now that we are in an age of inflation, perhaps debt is the way to go in terms of income.
@@SmallBusinessToolbox Thank u so much for your answer.I was eligible for the first too but now because i just open my limited company im confused i think i will dont gone be eligible anymore
When I set up in 2010, Ltd was the only option - as a supplier of services to Industry, Ltd was required for the contracts I was seeking, and was looking to grow. Came to here because my artist child is setting up - in her case sole trader is a no brainer.
I'm a new to your channel you are so brilliant. I want to invest money in business and become a solo or ltd trader. What should I do? I want to start business with food and reinvest all the profits in food
Thanks for your very useful postings in the past. Unfortunately, the Fabian socialists and their Technocracy (look it up on Bitchute, don't bother on censored platforms such as TH-cam or Google Search) has put paid to my sole trader business. I suspect this is true of most other small businesses. Anyway, truly, thanks again. Stay free, not safe!
@@SmallBusinessToolbox Very well could. Although we are in Canada so the regs maybe a little different, but not too much. She also hates doing tax, she even doesn't like doing my corporate taxes. Lol
Article with more information: smallbusinesstoolbox.uk/starting-business/sole-trader-vs-limited-company/
Tide can set you up with a limited company and bank account - have a look at my review here: smallbusinesstoolbox.uk/tide-business-bank-account-for-me/
Mia
You just taught me more than I learnt in my years in business school...
Magic video Andy. I wish I had seen your video years ago before setting up my limited company. My Accountant just assumed that I knew all of these things and it was a steep learning curve.
Still one of my most helpful sources of explained self employed notes for years now. Thanks for the breakdown mate, top shelf!
I’ve literally got 2 businesses and it’s been racking my mind so badly about tax & accountancy fees & this was so so helpful really appreciate it 💚💜
Update guys!! I have done loads of accounting this morning and got all my purchase invoices , bank statements , expenses etc together . It’s beeeeeeen so draining but getting there sometimes we see a mountain in front of us ⛰ and we stare at this mountain and worry ourself and we look up towards the mountain and it keeps growing bigger and bigger . But we only need to view that mountain . As smaller than you you are bigger than your mountain (fears, worries,anxiety, ptsd) and once your at the top of the mountain you’ll look back at your past self , and well wonder why we ever worried so much! To anyone else out there with ptsd anxiety 💜❤️💚🥳🚀
@@bandobabyworld✌️💜
this was very helpful thank you
yes hamza
ohh God that was amazing the way you explained it saved me hours and hours of reading and researching! BIG LIKE
Clear, concise and fun video to watch - I like your style!
Brilliant. Going to show this to my wife as I don't think she understands why we have a Ltd. Company
Great advice Andy. To anyone thinking of setting up a Partnership I would say do lots of research about how partnerships differ from sole trading/Ltd. company. I’ve been a director a number of times and am currently a partner. The legal basis for partnerships is a bit quirky, so you really need to understand it, especially about how partnerships can be dissolved.
Indeed - wise words. Non-limited partnerships can be quite complex. 👍
Been needing to know this for a while. Thanks for this video.
Nice video Andy. A very complicated subject but explained in a concise and easy to digest format. Nice touch with the Lego figures.
😊👍🏽 Mark
Cheers bud - it was fun getting the Lego out! 😂👍
I know the subject well but watched it just to see how Andy used Lego to explain it!
thanks Andy. Really enjoyed that, very well explained. I operate as a Sole Trader but have formed (by accountant) an Ltd company so I'm ready if I needed, plus it stops anybody taking the name :-)
Good plan on grabbing the name - done that before! Best of luck! 👍👍
Glad you put this as I was thinking of doing exactly the same!
Love this guy for keeping things simple 👍
Thank you so much.Very educative and well explained
Great video. Really useful for grasping the basics. Thanks
Well explained, its complicated subject
Thank you! 👍
Thanks for the information ! Very useful
Good tips mate. Thanks a lot for your content. It's really useful
great vid! thank you so much for sharing this info! the breakdown was fantastic !
You explain it so well ... you have gained a subscriber... xx
Yeh it's very helpfull video
This is my first video and i though i would definately subscribed this channel because this is very helpfull.
Thanks 👍
Legend
Thanks for your help. I learned a lot from this video.
excellent and infomitive, nothing more needed
Tutorials just the way I like them! Excellent. 👍
Great explanation and what I've been looking for
Great Video! Well explained
I will be sharing your uploads very good and informative thank you
Very well explained. Love the use of Lego. Thanks
Can you switch from being a sole trader to a limited company easily ? Or at all ? Thanks for this amazing vid
Very informative thank you
Thank you so much
Thanks for video!
Legos a genius! Great video - thanks!
Informative, thanks mate...
No worries! 👍👊
Oh god what have I done lol, Just started my limited company as I wanted to start as one ready for the potential (hopeful) growth, this video has gave me more concerns than I had lol
lol same
So helpful thank you
Thanks Andy! Can you advise on the potential issues faced if I operate a LTD company and take a wage whilst also being employed by others (not linked). What knock on will it have to my personal tax and would my employers be alerted (via tax codes etc).
Great video Can you recommend a good accountant?
Hi again Andy, I was just wondering if you have any info on whether there are any changes to filing tax returns for 2019/20 or is it the same as the previous year? Many thanks Paul
Hi, thanks so much for teaching all this, I would like to ask you I'm a freelancer copywriter what would you suggest me to open a limited company or a sole trader ?
Please help me out with that.
Thanks in advance.
I'm enjoying the use of lego - clever
Andy, this is a great video, (I say that as an accountant with my own practice). Spot on.
Thank you Luke! Was a bit nervous with this one in case I missed anything! 😀👍
Hi, very helpful easy to understand video(the lego helped alot). Is it possible to register a Limited Company, and then Freeze it to save all the accounting drama? The reason why is I am in an extremely tight financial situation, and it's early days, however I need that company name for branding reasons?
Another great video Andy. Have you ever thought of producing on ebook based on this channel? Just a thought..
Take care in these strange times!
Thank you! Putting a lot of work in to the website smallbusinesstoolbox.uk/ but watch this space! 😀
Make a video about LLP
Starting a online dropshipping store would you recommend me going as a sole trader ??
I'm about to start working with my friend in construction he's a sole trader but I want the flexibility of being able to work for an agency either lorry driving or traffic management if i need extra cash would i be better as sole trader or limited company. Great video
*I have set up a LTD company only to realize that it will not make any penny for the next couple of years. There is no business account set-up either. Do I still need an accountant? Am I screwed for nothing?*
I consulted for a movie some 15 years ago and it was produced in 2013. I have not been paid yet but want to explore this, however have just done the one consultation and the agreement was to be paid as a percentage after the movie release.. what would I register as and when - eg would I have to register as self employed for the day the consultation occured, or from raising the invoice, or from being paid?
Nice info
Hello how would i do this by being a hypnotist so i wont actually make any profit ?
If I have a paye job and also have a sole trader buisness. If I switch to limited does my allowances become separate? Currently they run together on self assessment and I pay tax regardless on my business as my allowance is at my paye job
Hi Andy, great video. One question, if I set up as a sole trader and then say in 3 years generate enough turnover to warrant making it into a limited co. How easy is it to upgrade as it were?
Would I need to start a fresh as a ltd and desolve as a sole trader or is there a way of simply shifting the status of the business?
It's generally a case of winding down the sole trader business and starting up from scratch with the ltd. co. There's no easy way to transition that I'm aware of. So new bank account, new contracts, new invoices with co. details etc. 👍
@@SmallBusinessToolbox Ah ok thanks, that's really helpful and unfortunately what I expected.
Also, you mentioned you don't need to actually register as a sole trader until the second year. Does the same apply when starting a ltd co, or does setting up a ltd co need to be done before bringing in money from a client?
Do you have any links/ resources for business plan and financial projection templates?
Great video
If you’re an owner but not a director, does that mean you can only receive dividends but no salary?
Thank you this helps explain the pros and cons of both options! Currently debating the path I am going to take but info like this is really beneficial :)
I am subscribed
great stuff this
Does your assessment change in light of IR35?
How can i set up sole trader what do i have to do?
Great Video!! I'm from Bermuda, a British Territory where would I pay taxes if I opened a LTD company in the UK, would I pay in my Country? We are one of those tax havens, no income tax here.
Hi Andy. I known you're spinning a lot of plates and you get asked a lot of questions. I started my business 3 years ago as a limited company straight from the get go because I was 'paranoid' about keeping my personal assets separate. However my annual accountancy bill is over £2000. That's profit I'm using! My annual profit is less than £20000. Should I change to sole trader or just find another accountant? I'm the director, sole employee, and a shareholder at the moment. Does a sole trader with PLI have enough legal protection for their own assets?
Hey Andrew, that does seem expensive. I'd normally pay around £600 for Ltd. company accounts for a business of that size. Depends how much you're getting them to do but if all they're doing is micro accounts £2k seems steep. £20k is a bit low for a ltd. co. - you'll probably not see any tax savings until you get to £40k+ but obviously there are other benefits as you say. I'd shop around for a cheaper accountant. 👍
@@SmallBusinessToolbox Thanks for the response, appreciate it. They do my company accounts and my personal tax returns (employee). I literally do nothing apart from sign stuff! I currently don't pay tax as an individual and the company doesn't benefit from a tax perspective. To top it all I've just had a letter from the ICO this morning stating I need to pay a data protection fee for my company. That was news to me. I think I'll look for an alternative accountant, especially as I'm not as 'green' as I was when I set up the company. Thanks again for the reply.
Hi just wanted to know if I pay for stuff for the business that I am setting up say April but yet I don’t launch the business untill august or September .would hmrc want to know income/expenses for that tax year when they ask for that information (when ever they ask) or would they only want to know from august ? And just show them invoices of stuff I’ve brought .? Also if I have one bank account for personal and business would I have to keep records for my personal expenses or just the business .?
Kelly you can claim for business related expenses prior to launching the business (I did it for mine for equipment I'd bought already) HMRC have details on this on their website so it's worth going and reading their relevant pages
Hi, I'm an Indian. I want to start my own Cosmetic company in UK. For foreign citizens how much minimum amount is mandatory to start UK Ltd company?
Please suggest 🤔🤔 or Can I start sole proprietorship ?
Hi Andy. I opened a solo trader business account and they put it under my name and not my business name. What do I do to get my business name on my account? I am starting up as a photographer.
Hello, I'd like to ask some something Where could I look for a Accountant ? I'd live to become a TH-camr and be more active on some social media but what you could advice me the first one or the second one?
Hi
Can i register a business as a ltd company to secure the name for the future and be a sole trader?
Does being a sole trader affect the chances in getting a mortgage?
Great question and YES! Big topic. Might do a vid on this. 👍
@@SmallBusinessToolbox please do - totally totally laser focused on this subject myself as a sole trader!
8.53.....Elon Musk (as an eg.) doesn't extract money from his company directly. He owns shares, and the value of those shares allows him to take out personal loans at preferential interest rates. He lives on the loans and so pays minimal income tax. I imagine a lot of other millionaires do the same. Now that we are in an age of inflation, perhaps debt is the way to go in terms of income.
If i just register before 1 month my limited company can i still take my self employed grant? All the years i was selfemployed
As far as I can tell you just need to read the rules for the self employment grant and see if you qualify. The ltd co. is a separate entity. 👍
@@SmallBusinessToolbox Thank u so much for your answer.I was eligible for the first too but now because i just open my limited company im confused i think i will dont gone be eligible anymore
Can I be self employed and be the director/shareholder of a LTD at the same time?
Yup!
Will be raiding the toy box for lego figures to add to my meeting room essentials. If meetings are still a thing. 😄
Ha ha yes! It's all virtual meetings these days! 😆👍
I just died laughing when I saw Cayman, As thats where im watching from.
When I set up in 2010, Ltd was the only option - as a supplier of services to Industry, Ltd was required for the contracts I was seeking, and was looking to grow.
Came to here because my artist child is setting up - in her case sole trader is a no brainer.
I'm a new to your channel you are so brilliant.
I want to invest money in business and become a solo or ltd trader.
What should I do?
I want to start business with food and reinvest all the profits in food
bud you should have mentuioned ease of raising $, if you want an expensive BMW on a finance lease, LLC is your choice
Im @LOL NOW
Does accountant gives you paracetamol for everything as well ?
Thanks for your very useful postings in the past. Unfortunately, the Fabian socialists and their Technocracy (look it up on Bitchute, don't bother on censored platforms such as TH-cam or Google Search) has put paid to my sole trader business. I suspect this is true of most other small businesses. Anyway, truly, thanks again. Stay free, not safe!
good thing my wife is an accountant
Ha very handy! You can get her to double check my video for mistakes! 😆👍
@@SmallBusinessToolbox Very well could. Although we are in Canada so the regs maybe a little different, but not too much. She also hates doing tax, she even doesn't like doing my corporate taxes. Lol
Business = hard work, stress and massive bills
Great video