Sole Trader of Limited Company?

[Vendition Ltd]

Hi Everyone,

What is best to be registred as in the vending industry, a sole trader or a limited company?

My accountant advised me on being a LTD company but I am wondering if being a sole trader would save me on tax?

I know that being a limited company I can take dividend out of the profits and pay corporation tax at 20% and avoid paying any National Insurance but what are the diss advantages?

Kind regards

Ross

[Snackmore]

As a sole trader I would be very interested in the pros and cons here

[Coin Operated Group]

Accounting costs are higher for ltd plus public and employers liability are compulsory and annual return fees to companies house

[part-time-operator]

you can even do both, that way on self-assesment you can reduce your tax bill. well worth it in my opinion

there are a lot of advantages to sole trader, quick and easy to do your returns, much easier to legally reduce your tax bill, no need to worry about the specifics of how you are paying yourself or missing out on NI contributions, most banks will allow you to open a sole trader account with much less paperwork,

[PGBrew]

As a vending operator I run the business as a sole trader. it's easier and cheaper this way. As the business is growing I am thinking of setting up a Ltd Co. The limited company will be registered for VAT and all machine purchases & ownership, insurance etc. will be by the company. The only income will be from peppercorn rental of machines to the sole traders operating the business. Il's only an idea but I think it will work? any thoughts?

Pete

[Vendition Ltd]

I have done a little more researchon this and I am pretty sure being LTD is the better option. If done correctly you can end up saving quite a bit in tax but with the yearly budgets from Government this may not be the case forever.

You will pay more in accountancy costs but will save on not paying out on National Insurance on your dividends which are taxed at just 20%