Soletrader to Limited company

[soletrader1]

Is it worth my time setting up a limited company to trade out of. I was told if I do set up a company I can sell my equipment to the company as a directors loan about €60,000 worth of equipment. Does this mean the company can pay me the €60,000 euro for the equipment.... so the first 60,000 euro the company earns I can take tax free?

By selling the equipment to the company do i need to pay any taxes. A fair percentage of it has either already been written off and some of it was purchased by me before I was a sole trader so do I need to pay any tax on the 60,000 I get from the company..... or do I have to take it as company shares

 

[44brendan]

A fair percentage of it has either already been written off and some of it was purchased by me before I was a sole trader so do I need to pay any tax on the 60,000 I get from the company

Presumably as a sole trader you have been making returns to the revenue which include capital Allowances (depreciation) on the equipment. If you sell this equipment to a new company for a higher value than the current written down value you will be liable for tax on the difference.
There are positives and negatives re transferring your business to a limited company and you should take no action without first discussing these with your accountant.

 

[soletrader1]

For the items which were not on the books of the soletrader which I own that I transferred over am I correct to say that I don't have to pay CGT on these?

 

[44brendan]

You need to talk to your accountant. CGT may be applicable if you dispose of assets and you need specific advice from an expert on all matters pertaining the transfer of your business to a limited company.