1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Self Employed whilst Remaining Employed Tax

Discussion in 'Business & Tax Advice' started by TheMoneyWizard, Apr 4, 2015.

  1. TheMoneyWizard

    TheMoneyWizard Elite Member

    Joined:
    May 31, 2012
    Messages:
    2,351
    Likes Received:
    2,465
    Location:
    Wonderland
     
    Last edited: Apr 4, 2015
  2. Sunday Lunch

    Sunday Lunch Junior Member

    Joined:
    May 28, 2011
    Messages:
    191
    Likes Received:
    163
    It takes 10 minutes to set up a limited company online.

    It will take an hour to see an accountant who will set you up for VAT (if it looks like you will turnover more than 82K), the accountant will cost you about 2K a year (cheap one).

    The accountant will pay you in dividends or recommend you reinvest your earnings, either way you will end up paying 20-25% tax, IMHO.
     
  3. neu009

    neu009 Jr. VIP Jr. VIP

    Joined:
    Jul 29, 2009
    Messages:
    1,210
    Likes Received:
    318
    Go see an accountant, nobody will give you real advice online. Alternatively read all you can as it is all based on tax code you can usually get a good idea and just be left with 1/2 real questions vs. what should I do.
    Don't know the UK tax code but given you are sole member LLC(basing on US tax code) there could be either pass through or coproration taxation. Pass trough comes with the same taxes (after deducting expenses etc) as sole proprietorship does but so easy you can do it yourself. If you elect to be taxed as corp you can save some taxes but will need to do payroll, real tax return etc. and have to weigh in whether its worth it for you.This is no tax advice,just my opinion. Go see an accountant! Most even do a free initial consultation. So if you can ask them 1 or 2 specific questions vs. what is the best, you should be good. Good luck
     
  4. hopon

    hopon Newbie

    Joined:
    May 3, 2009
    Messages:
    22
    Likes Received:
    2