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Forum - Sole Trader v Limited Company

Sole Trader v Limited Company

Wed, 21/07/2010 - 09:25 — hayles

Hello,

I've been offered (potentially!) some book keeping work. Initially, I would be freelancing for a small accounting firm, then hopefully becoming a "proper" employee.

I've been dealing with limited companies for many years so have a reasonable understanding of how to trade through that, but want to look at going self employed as a sole trader as well, to make sure I make the right decision. The ease in which I can wind up things if/when I go PAYE again is quite important as well.

What would you recommend? I'm aware of the costs of setting up a limited company and the pros/cons of that method, but only have a basic understanding of self employment.

Many thanks
Hayley

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elaine@cheapaccounting.co.uk's picture

Hayley

If this is a temp thing then self employment may be a good answer - easy to set up / wind out. See here:

http://www.franklyaccounts.co.uk/gettingsole1.php

To be honest without knowing more it is difficult to advise further.

One thing to be careful about is the HMRC employment status indicator:

http://www.hmrc.gov.uk/paye/employees/start-leave/status.htm

You may be classed as an employee anyway!

Good luck

Wed, 21/07/2010 - 09:55 — elaine@cheapacc...

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