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

  • Tavy
    Lv 7
    12 months 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.


Still have questions? Get your answers by asking now.