When to move from Sole Trade to Ltd if mainly FT employed as well?

funkyBase

Quick question. Obviously that person doesn't pay much tax as their salary is miminal and so are the dividends(so to the IR it looks like that person has a low income). Therefore the money is being left in the company and you are paying 19% corporation tax on the profits. But if you want that money out it just cannot go missing, there are legals docs and procedures to get it out.

My question how else can you get money out of a limited company if not through a salary or dividends?

A good accountant is the best bet but I would always be a bit concerned ignoring what the IR say about paying tax as they are the ones who will be chasing you for it.

I know people who have had "good" accountants and didn't have much tax to pay but it caught up with them in the end.

inmypocketnottheirs

FunkyBase, the revenue have to agree the accounts when they are filed, so where is the problem. A limited company is an excellent way of reducing tax liability for directors and shareholders, if done properly. The only way to get proper advice is to pay for it, from a qualified professional, and one that is best found by personal recommendation. Attending courses, and only half listening is not the way to make a qualified judgement.