I would appreciate some wise words.
I've been a sole trader since 2004. In 2017-2018 I greatly increased my hours and consequently earnt £65,800 which is very exciting.
I've just done the tax return: tax was £20,000 (a third of what I earnt). I have very few expenses (people pay for my brain-work and I don't travel much) but the tax was still reasonable because I put £55000 into my private pension (much needed, as it has languished since 2004....).
This year (to 5th April 2019) I'm on track to earn £76,450. I already have a company set up but dormant. My options, I think, are either to pay practically everything into pension again or to switch to trading as a ltd co as then (if I understand rightly) everything will be taxed at 20%.
i'd appreciate some advice. I've been a bit lazy about this issue over the years but when I was earning under £40 k it didn't really make much difference. One factor that used to apply was that I wanted to make sure my national insurance contributions were maxed out for the sake of the old age pension, but I think that's taken care of now as I've paid them since 1997 without a break.
Thank you.
Please or to access all these features
Please
or
to access all these features
Chat with other users about all things related to working life on our Work forum.
Work
should I switch to a limited co?
36 replies
nojellybabies · 06/01/2019 17:02
OP posts:
Don’t want to miss threads like this?
Weekly
Sign up to our weekly round up and get all the best threads sent straight to your inbox!
Log in to update your newsletter preferences.
You've subscribed!
Please create an account
To comment on this thread you need to create a Mumsnet account.