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Should I Incorporate?
In the early years of a business, the privacy of operating as a sole trader may be attractive. Business funds can be used at will with fewer restrictions than in an incorporated environment. However, as profits increase, trading via a limited company offers tax savings when compared to self-employment. Additional tax savings can be made by gifting shares to a spouse or civil partner (that you are living with) if their income falls into a lower tax rate than yours.
We are often asked, ‘Should I form a Limited Company?’ The reality is that there is no easy answer. Each situation has to be judged individually. As well as the obvious issues of tax and national insurance contributions (NICs), there are other potentially relevant factors, such as:
Possible advantages of incorporation
Potential disadvantages of incorporation
Call us to talk about our limited company services and the options we can provide.
Self-Employed pages ► Self Employed sole traders ■ Registration and National Insurance ■
Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ T: 01332 202660
Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414
Registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants auditregister.org.uk 8011438
61 Friar Gate Derby DE1 1DJ