self employed, With Own Ltd Company

ukbill69

Dear All,
Im an IT manager and I would like to make more money in my current job and my employer said I should go self-employed. I travel into London every day and weekly costs are £96 to get there, £61 train, £20 petrol, £15 car park. I own a ltd company with my best friend. Would I be better off going self-employed under my ltd company or going as a sole-trader. I have learn that as self-employed I will have to pay an accountant to do my books that I do most of it through sage and pay 18% tax and £2.05 per week NI. Now Could I claim back my travel costs against tax or is it a % of what I pay out and what else can I claim back and what other costs or work would I have to do.

Some advise would be great. Thanks in advanced.

Astaroth

Either way (Sole or Ltd) you can deduct traveling costs against the company as long as they are purely for business use.

An accountant isnt actually a legal requirement but 9/10 their expert knowledge on taxation can save you more than their fees are. If you speak to one now they will be able to advise you the best route between Ltd and Sole trader for your anticipated incoming/ outgoing monies.

Lawbag_2

there is a very specific distinction between a self-employed and employed person.

is your ltd co. going to be employing you to work for your old employer?

richt71

ukbill69 wrote:

Dear All,
Im an IT manager and I would like to make more money in my current job and my employer said I should go self-employed. I travel into London every day and weekly costs are £96 to get there, £61 train, £20 petrol, £15 car park. I own a ltd company with my best friend. Would I be better off going self-employed under my ltd company or going as a sole-trader. I have learn that as self-employed I will have to pay an accountant to do my books that I do most of it through sage and pay 18% tax and £2.05 per week NI. Now Could I claim back my travel costs against tax or is it a % of what I pay out and what else can I claim back and what other costs or work would I have to do.

Some advise would be great. Thanks in advanced.

I have both been both sole trader and an employee of my own ltd company. My accountant answered the same question in that if you earn more than £9k a month then setting up a ltd and being an employee is best as you can take monies over and above the £9k a month as dividends and pay just corporation tax at 19% rather than top rate of personal income tax at 40%.
If not set-up as a sole trader as it'll be cheaper for you and you can still put your expenses against your earnings.

Raksha

Are you going to be working for more than one company? Will you be able to sub contract somebody else to do your job for you? If the answer to both of those is no, then you need to consider IR35, which is a legislation to prevent abuse of the 'expenses' scheme by people who work 'under contract' for one employer.........

johnllew

ukbill69 wrote:

I travel into London every day and weekly costs are £96 to get there, £61 train, £20 petrol, £15 car park.

Looks like home to office travel, not business travel.

ukbill69

its from my home to business, but my business is registered at my home.

ukbill69

and I will be working for them full time.