PDA

View Full Version : a question or two about tax....


milla
10-08-2003, 05:33 PM
I'm not sure if I'm being really dense or not.. I probably am (can I blame it on being swedish? ;))

Anyway.... as a sole trader how does it work to get paid? Can I "take" money when I need it instead of ie the 25th each month? Do I have to pay income tax on all profit the company makes? or can I leave money in the company that I don't have to pay tax on ie for future growth etc?

Any help is very apreciated!

James Smith
10-08-2003, 11:04 PM
As a sole trader you can take "drawings" as they are known at any time.

In terms of tax, you pay income tax and NI on all your profit, regardless of whether you reinvest it in the company or not.

If you set up as a limited company, the rules are a little different.

Also to note, you do need to register with the inland revenue when you start trading. If you havent there is some more info at:

http://www.inlandrevenue.gov.uk/startingup/index.htm

When you are reg, they send a folder that goes through the basics, like when you need to pay tax and how. It is actually not a bad guide.

If you need some help, I am happy to take a call from you to set you in the right direction.

Regards,