Hi there,
I'm thinking of setting up my own business. I should earn 15k in first year. I also have 37k paye income so will not need to take an income from the 15k.
I was thinking limited company due to 12.5 percent tax but am I right in saying any dividends will be taxed at my normal tax rate so in effect I will be paying 12.5 percent tax and normal tax on any profits? In that sole trader would incur less tax?
I will of course speak to an accountant and financial advisor when the time comes.
Thanks
I'm thinking of setting up my own business. I should earn 15k in first year. I also have 37k paye income so will not need to take an income from the 15k.
I was thinking limited company due to 12.5 percent tax but am I right in saying any dividends will be taxed at my normal tax rate so in effect I will be paying 12.5 percent tax and normal tax on any profits? In that sole trader would incur less tax?
I will of course speak to an accountant and financial advisor when the time comes.
Thanks