Hi, just playing with ideas here and was wondering if anyone could advise me on the following.
I have 2 Rental properties paid off and rented out.
I drive a car for 4 different state/semi state agencies. All through the books of course.
As my Rental income has me in the higher tax bracket I feel I'm driving for little return as 50% of profits go to uncle Sam.
I was thinking about setting up the driving as a Ltd company and not drawing any wage from it and putting it all into a pension to avoid paying tax on it. Might retire in 15 years and could always draw a small salary if I ever needed it.
My question is, could I operate the driving as a sole trader and Ltd company at the same time. Say 2 agencies paid my Ltd company and the others I'd invoice as sole trader and pay tax as usual?.
Or would it all have to be either Ltd / Sole trader.
Driving brings in 30k a year profit. 6 hours a day 4 days a week. No nights or weekends.
I have 2 Rental properties paid off and rented out.
I drive a car for 4 different state/semi state agencies. All through the books of course.
As my Rental income has me in the higher tax bracket I feel I'm driving for little return as 50% of profits go to uncle Sam.
I was thinking about setting up the driving as a Ltd company and not drawing any wage from it and putting it all into a pension to avoid paying tax on it. Might retire in 15 years and could always draw a small salary if I ever needed it.
My question is, could I operate the driving as a sole trader and Ltd company at the same time. Say 2 agencies paid my Ltd company and the others I'd invoice as sole trader and pay tax as usual?.
Or would it all have to be either Ltd / Sole trader.
Driving brings in 30k a year profit. 6 hours a day 4 days a week. No nights or weekends.