Any real advantages for us to be LTD?

[ukpartydj]

I understand the differences between a Private Limited Company and all the other types of companies and partnerships etc and have no interest in signing up for VAT.
However another agent said to me the other day going LTD made life so much easier and he thinks it actually saved him money in tax (not in accounting fees).

I quite like the sound of having a LTD company, I've not yet been told that I've not been given a contract because I'm not a LTD company however it could well be the case and I'm just not hearing about it - does anybody have first hand knowledge of any advantages / disadvantages?

[Benny Smyth]

I understand the differences between a Private Limited Company and all the other types of companies and partnerships etc and have no interest in signing up for VAT.
However another agent said to me the other day going LTD made life so much easier and he thinks it actually saved him money in tax (not in accounting fees).

I quite like the sound of having a LTD company, I've not yet been told that I've not been given a contract because I'm not a LTD company however it could well be the case and I'm just not hearing about it - does anybody have first hand knowledge of any advantages / disadvantages?

I was tempted to go LTD earlier this year, but my accountant tells me that there is no point considering it until your turnover hits about £55k, as you don't really feel the benefits (I don't know what your turnover is like). If you go LTD, you don't have to be VAT registered until you reach the threshold, (which is £81k, I believe) but you can register voluntarily.

Best thing to do is talk to an accountant and work out together which way will save you money in the long run.

[yourdj]

Your agent probably deals with corporate clients who charge VAT. I personally deal with private clients who don't, so would have to add a 20% premium on my already high costs. That and all the admin and extra restrictions means that I always stay just under the threshold.

What is it now day btw - 81 as per the above? it was 75 not long ago, thats a large jump

[ukpartydj]

VAT is at turnover of £81k now - I'm not interested in that at all though I'd need something like 150 extra gigs for my DJs per year to be near worrying about that.

Mainly interested in the differences in tax, as when you have a company you become an employee of that company and therefore you pay tax differently - especially if you don't plan to withdraw all of the money and plan to re-invest.

[Benny Smyth]

VAT is at turnover of £81k now - I'm not interested in that at all though I'd need something like 150 extra gigs for my DJs per year to be near worrying about that.

Mainly interested in the differences in tax, as when you have a company you become an employee of that company and therefore you pay tax differently - especially if you don't plan to withdraw all of the money and plan to re-invest.

You don't have to be employed by the company. You yourself can remain a sole trader whilst your company is a separate entity.

As a sole trader, you can earn from the company up to the annual threshold before you start paying tax (£10k?) But then supplement your salary with shareholder dividends which may work out better for you for tax purposes.

A good accountant will work magic if a LTD company is the right option for you.

[Jim - Scotland's Party DJ]

The biggest advantage that i can see (not knowing the ins and outs of the accounting side of it) is that any liability is limited to the company so if you electrocute somebody and the family sue - you'll lose the gear and any company assets but get to keep your house.