LTD Company Or Not LTD

Hi just trying to get some advice. I am thinking of registering as a Limited company in the new tax year, is there any benefits to this? Thanks for your advice in advance... [name]

Best advise :Speak to your accountant

Rapids advice is probably the best you'll see in this whole thread.

However, I suspect that your accountant will advise against it.

The only reason I can see for an owner driver to become Ltd is if they are going to take the next step and become a courier company. In which case you may be signing a 12 month lease for offices and would also obviously be liable for payment of the invoices from other owner drivers to whom you have sub contracted work.

Logically then, in the event that a client of yours fails to pay you then your liability is limited only to the finances which are held within your company. That is to say, at least you wont (shouldn't) lose your home if it all goes tits up.

Sims & Sons said:

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However, I suspect that your accountant will advise against it.

I don't mean that your accountant will advise against talking to your accountant.:-)

I just meant that your accountant will undoubtedly advise against forming a Ltd company.

Thought they stopped making LDV's

Accountant will most advise for it as the tax breaks are better. And the accountant will make more money by charging for running your payroll.

Liabilities are limited however most loans finance will require a directors guarantee. And if you have good credit limit it may damage it as you will start from scratch again you won't have any trading history

Sims & Sons said:

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That is to say, at least you wont (shouldn't) lose your home if it all goes tits up.

but everyone else you owe loses a bit of theirs!

Personally I wouldn't as the simplified accounting scheme, mileage allowance scheme and flat rate VAT scheme aren't available to limited companies.

Gregory & Sons said:

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Hi just trying to get some advice. I am thinking of registering as a Limited company in the new tax year, is there any benefits to this? Thanks for your advice in advance... [name]

Has good and bad benefits, if you have a good accountant prepared to put your interests first can be cost effective. If your accountant only deals in black and white rather than the grey area between might not be too good. If you need a chat give me a call. [phone]. Regards [name]

We asked the same question of our accountants and Lois@somersetaccountancy put it very clearly, Unless your profit reaches £20K per year with the extra cost of tax returns and employers insurance NI contributions your are better off as a sole trader! Hope this helps!

Today I became a LTD Company after taking advise from my Accountant.

Can you summarise why your accountant recommended going LTD? I am looking at starting a courier company after helping a friend out with there work and wondered whether sole trader or LTD.

There is plenty of good and usefull information on tinternet about the benefits and disadvantages of starting a Limited Company, you are best off reading as much as you can, ask lots of questions, then make up your own mind. Personally, I did it nearly 18 months ago, and while there are some costs involved, I feel more professionally protected.