Trading as a Limited Liability Entity

Sole Trader or Incorporation – which is right for you?

UK legislation is such that for many people, in particular skilled tradesfolk, service providers and, registering as a Limited Liability company would have a number of benefits. Both financial and lifestyle.

The primary benefit accrues because of the taxation treatment under UK law of dividend income. Currently UK dividends are taxed at 10% versus base rate income tax commencing above the personal tax allowance at 20%.

Some of the downsides often quoted by directors of small companies include:

  • Additional PAYE and VAT administration
  • Suitable contract opportunities
  • Assessing IR35 implications
  • Annual returns and year-end accounts
  • Even when using 3rd party help, the time to prepare information for relevant submissions

Cubed Consultancy can of course assist you with some or all of these!

Everyone’s circumstances are to some degree unique. So to find out what makes most sense for you and your family, contact us using the interest registration form below. Looking forward to speaking with you.