Sole Trader
This is the simplest way to run a business and involves
no costs in respect of registering the business. Books
and records must be retained (as with all businesses)
however these can be structured fairly simply to enable
the sole trader to retain their own books and keep the
accountants' fee down. The only requirement for those
going self employed is to register with HM Revenue and Customs
within three months of commencement.
Sole traders are taxed on the profits of the business
rather than the money withdrawn from the Company. In
addition to tax sole traders and also required to pay
Class 2 National Insurance (usually on a monthly basis)
as well as Class 4 National Insurance, which is calculated
when preparing the self assessment tax return, and is
based on the level of profits of the business. This
is payable with the individual's tax liability on 31st
January and 31st July annually, if applicable.
Sole traders should have annual accounts prepared together
with an annual self assessment tax return.
This provides only an overview however please contact
us for a free initial consultation.
Partnership
Partnerships operate in the same way as sole traders
with the exception that there is more than one proprietor
of the business and the profits of the trade are split
according to the partnership agreement. In addition
to the annual accounts and individual's self assessment
tax return a partnership tax return must also be completed
and submitted to HM Revenue and Customs.
Limited Company
The majority of our clients operate as a Private Limited
Company i.e. they own and manage the business. The main
benefit of operating this way is that, unless there
are any personal guarantees, the liability is limited
to that of the share capital of the company. At present,
should sufficient profits be anticipated, this can be
structured to be tax efficient in comparison to trading
as a sole trader or partnership. All limited companies
are governed by company law and their memorandum and
articles of association. Vinings Limited offer a service
which ensures that you comply with all legal requirements
and meet all filing deadlines.
For a list of services available please refer to our
services page.
This provides an overview of trading as a Limited company.
If you require further information then please contact
us for a free initial consultation. |
