Hi everyone, i dont know if im in the wrong place but i need some help.
I have been self employed (sole trader and not vat registered) for 5 years, ive happily done my self assesments no problem.
However ive now invested in a small workshop (rented) and using equipment over the past few years ive opened up doing sign making and labels etc, still doing the lorry driving part time (i work for a rental company delivering the units only).
Basically i need to know whats the best situation for me to be in i.e ltd company or not?? Ive spoken to a accountant who advised me to do the flat rate vat scheme for the lorry driving but stay sole trader , but not register for vat for the printing as my customers may be put off by the 20% increase.
In a ideal world id like to be ltd and vat registered but im just not sure. If anyone on here can and is willing to help i.e do my returns and give me advice id gladly pay, being a small business i like to use smaller businesses anyway.
I currently do my book keeping on quickbooks self employed online.
Hi Jamie
I am afraid that we cannot provide specific advice on here as this forum is for bookkeepers and Accountants, but I can see that you are open to someone providing this for you for an appropriate fee.
Can I suggest then that you include the Private Messaging (PM) facility in your profile - you can easily do this by just editing your profile. Also - worth mentioning on this post where you are based although you may well get some approaches from professionals who are happy to do remote work. I can see you are from Nottingham - perhaps just edit your first post to include this so it can be seen very clearly without people having to view your profile, or indeed just start a response to this one, although folk on here might be reading my reply to you (so will now know).
The driver to which way to go will be dependent on your personal circumstances as well as the type of trade and the volume of sales you are doing/forecast to do, so discussions will centre around this and a few other factors. Bear in mind also that these appear to be two separate and distinct businesses so advice should be provided as to structure most suitable for each and what can impact the business if you were to run it as one.
One thing to also bear in mind is that whilst you have been doing your own self assessment who has been preparing your actual accounts - you should still have a profit and loss and balance sheet for the business, so if you havent this is something the new advisor will need to sort out.
Might be worth mentioning what it was about the accountant you have already spoken to as to why you didnt go with them.
Good luck finding someone and with the expansion of your venture
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Well don't go with the accountant who provided incorrect VAT advice. Once you register for VAT as a sole trader then the VAT registration applies to all your sole trader businesses so you cannot charge VAT on the lorry driving but not the printing. If you can charge lower fees due to trading below the VAT threshold then don't register until you need to, regardless of your business structure.
It may be beneficial to set up a Limited Company for both due to the NI saving (which has been partially eroded by the increased tax rate on dividends) but there are strict compliance procedures to follow and increased accounting fees. It would be necessary to perform bespoke calculations to determine if there are any tax savings. There are also other benefits such as limited liability, perception, flexibility, timing of profit extraction and exit strategy.
Get recommendations for local accountants and arrange some meetings.
Well don't go with the accountant who provided incorrect VAT advice. Once you register for VAT as a sole trader then the VAT registration applies to all your sole trader businesses so you cannot charge VAT on the lorry driving but not the printing. If you can charge lower fees due to trading below the VAT threshold then don't register until you need to, regardless of your business structure.
My mouth dropped open when I saw the bit about the VAT, I was just about to make a comment myself.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
