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JayKay's Avatar JayKay JayKay is offline
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Sole Trader or not?

I am going to close down my limited company either at the end of April or at the end of May, that is 100pc sure.

I am, however, undecided about keeping a part of my business or not. If I do, then I would like to act like a sole trader, rather than a limited company, as this is going to be a part-time activity only.

I shall be pretty busy with full time employment, an evening uni course which is due to start in September and I also need to spent time with my family and at gym, therefore, I may end up producing less money as sole trader, maybe only enough to buy my daughter some new toys lol

Could you answer the following questions, please, so you will help me making my mind?

1. If you are a sole trader, are there any money that are to be paid, no mater if you produce anything or not? For example, as a limited company, you still have to fill the Annual Return no mater how much profit or loss you have is there anything similar if you are a sole trader?

2. Is the self assessment tax return which you, as a sole trader, have to make to HMRC, the same with the one I have made in the past, as director of my limited company, or is something different?

3. Does an accountant need to sign any documents if you are sole trader? This is a very important question because, so far, I paid a little fortune to my accountant despite the fact that I did all the bookkeeping stuff myself

4. What about the profits? How much tax will I be required pay?

Thanks in advance.
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openmind's Avatar openmind openmind is offline
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1 - No.
2 - Yes I believe it is.
3 - No (and you had the wrong accountant )
4 - If your business makes a profit you will be taxed on it if you have exceeded your personal threshold including payment from full time work.
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JayKay's Avatar JayKay JayKay is offline
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Thanks for your answers, Phil. Btw, I used to pay something like 500 per year for my accountant. I tried but could find anyone cheaper and anyone I could trust.
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