Sole trader vs ltd company taxes?

Hi, I currently operate as a sole trader (courier) but I'm thinking of starting a LTD company. I'm trying to work out the benefits tax-wise.

At the moment I charge vat on deliveries at 20%, and I pay back 10% to the tax man on the flat rate system. (So effectively I pay 10% vat)

On LTD company - I think - I pay the vat, but 20% corporation tax, which means I would be better staying as a sole trader. Is this right? 

Thanks for any advice in advance, Rob.

1 Answer

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  • Tavy
    Lv 7
    3 weeks ago

    Don't do it. You only need a Ltd if you have a load of money with several businesses. You will be filling in more tax forms than you would believe.

    Stay as you are.

    UK

    • Bruno3 weeks agoReport

      ok cheers.

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