What you want to know is whether you should set up as a sole trader or a limited company. On most occasions, we recommend a limited company.
And in this article, we’re going to explore why. Setting up a limited company doesn’t offer all the advantages it did ten years ago. However, for us, the benefits that incorporation brings are still worth it if you want to take home as pay between £20,000 and £100,000 – but only just. If you earn more than
Let’s look at the arguments on both sides. First, we’ll consider how you’re taxed on £50,000 worth of profit in your first financial year.