retired_steevo93

I was considering declaring myself self-employed so I could claim back taxes on things I need in order to be a professional musician, such as haircuts and internet porn. My dad, however, has just sent me a text saying, "Have talked to accountant. Says better off becoming a limited company."

He's busy, or I'd be pestering him instead of you lot but... how the hell would that work? Senegal, you probably know.

retired_pneeru

Means you only have limited liability if you go bust instead of unlimited liability

retired_traci29

iirc you need a fair bit of cash to set up as an ltd. somewhere in the region of £50k ish. but there's probably loads of ways round that.

retired_steevo93

I assume ltd companies are given some kind of cushy tax status? Or else why would the accountant recommend it in preference to declaring as self-employed?

retired_sahin

as a limited company you don't pay any tax on the first £10,000 of profit, where as as an individual you do.

or something like that.

retired_corzawoodja

Ask me again in three years

retired_steevo93

The first 10k!??! Christ, that'd be handy

retired_Nikelesy

As a sole trader you dont pay tax on the first 6k profit you make

And obviously you declare everything and anything as expenses anyway

retired_nini59

what's the tax if you earn £10k anyway? about £1k max.

retired_nini59

yeah but that'd be the companies profit, not yours, thus must be reinvested back into the company, if you paid it to yourself as a salary then you'd have to pay income tax. I assume. Ofc you can use the money on a company car, maybe even a company flat etc.