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Changing from Limited to Sole Trader Help

Discussion in 'Business & Tax Advice' started by graphicnut, Jul 19, 2009.

  1. graphicnut

    graphicnut Supreme Member

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    Guys,

    Im currently running as a limited company but want to change to sole trader. Main reason being, i work alone and it's less hassel for me to keep my own books instead of worrying about end of yea profits on the company etc etc.

    Currently the ltd company is sitting dormant. Can i just go ahead and register as sole trader and carry on and leave the ltd dormant? Also is it ok to carry on using the Ltd companies bank account or would i need to ring the bank and get them to alter the name/type.

    Cheers guys
     
  2. oxonbeef

    oxonbeef BANNED BANNED

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    If you continue to use the ltd company bank account you are still operating a ltd
    company and will be liable for tax on any profits that go though there. As for letting it
    sit dormant you would still have to either submit accounts or a certification of non trading.
    your best solution would be to wind the company up and trade as a sole trader then all
    you have to worry about is your self assesment and national insurance contributions assuming you have no public liabilities.
     
  3. graphicnut

    graphicnut Supreme Member

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    yeah thought so.
    Trying to gather some papers together to sort it out.
    Do you know whats involved is ceasing a ltd company? Fees, paper work etc?

    There has never been trading through the name as it's been left dormant. Was for a big project i had earlier on in the year that fell through.


    Do you have aim mate so i can pick your brains?