Should I trade as an individual, or as a limited company?
Oh, that this were an easy YES/NO!
I advise many people on this, but it’s their decision in the end. And there’s no RIGHT answer. It’s what suits you best.
Here are some of the “weights” on either side! They’re the main issues my clients consider, though I’m sure they’re not exhaustive.
Jan 31 is a critical time for self-employed people, which includes many authors, part time or otherwise. It’s the deadline for your annual tax return, and the date for paying the balance of any tax that’s due.
BUT MOST IMPORTANT OF ALL?
It’s a deadline for letting HMRC know you’ve started earning *at all*.
In many cases, the penalties for FILING your return late are higher than those for paying your tax late. It can be up to £1600 a year.
By Catherine Chetwynd
HMRC statistics indicate that out of 945,000 company cars, some 200,000 are still driven by people who are paid private fuel allowances. Yet there is little to recommend this policy, from either the employee’s or the employer’s perspective.
Drivers perceive private fuel allowance as a perk, when in fact it is probably costing them money. The problem for employers is that this misconception can make it difficult to remove the facility. One alternative is to discontinue the allowance from a certain date, so new employees do not receive it. With existing employees who do gain, that employee can be bought out by calculating the difference between the taxable charge and the actual cost of the fuel and then grossing up that difference for tax and national insurance charges.