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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14646
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Assistant: How can I help? If I swap from being a sole

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Hello.
Assistant: Hello. How can I help?
Customer: If I swap from being a sole trader to registering my company with companies house, and then draw a wage from that company, 1- Can I keep my self employed stutus? and would I end up paying both corporations tax AND income tax on the money I make?
Assistant: Which tax year is this for?
Customer: it would be from this year on.
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: not yet.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Customer: replied 10 days ago.
Thanks Sam.

Hi

No you do not keep your self employed status when you convert to a limited company as you are then a director (employee) of the company and you pay corporation tax on the profits through the company and income tax as an employee so although the high street accountant will state its more cost effective as you can also draw dividends which attract no national insurance, the accountancy costs more than exceed the tax savings to be made, so unless you make more than £300,000 then remin a sole trader as you are

But if you proceed, then the self employment ceases when the limited company commences

Let me know if I can advsie further

Customer: replied 10 days ago.
Can I set up a social enterprise and remain a sole trader? Or, would I still have to be a director/ trustee?
Customer: replied 10 days ago.
Is there a certain amount a company can make before it pays corporations tax?

Hi

No you would still be an employee and HMRc do not view social enterprises as a vehicle for tax purposes, you are either a limited company, a partnership a limited company an LLP or a charity

So you still pay corporation tax as a social enterprise as s till a limited company

Tahnks

Sam

20% from 0 to £300.000

21% £300.001 +

Thanks

Sam

Customer: replied 10 days ago.
I have many questions...I am a working single parent who has been a sole trader for 5 years. Because of the change in the tax credit system, I've been told if I earn more than about £1000 in a month then my claim would stop and I would have to start over again. So i could have a good month, and then my claim would stop, and i might have a slow month the following month, but have nothing to fall back on. So I am trying to work out whether it makes more sense to register as a ldt company, at least be able to let profits accrue there, and then pay myself a steadier wage, but you say i cant be both director and remain a freelancer. So now I feel no further forward.

Hi

Then these all need listing as a new question as nothing to do with the original question or I can send you an additional services request plus these are more geared towards financial than tax advsie

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 10 days ago.
Not to worry. Thanks for your time.

Hi

You are welcome

Thanks

Sam