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  • Going self employed, what's best way forward?
  • geordiemick00
    Free Member

    I have one small business which is Limited company (not took anything out of it) and it’s in it’s early days and will be some time before I can take any dividends/salary from it.

    To enable me to have more time to spend in it and grow it i’m leaving my PAYE job next week.

    To enable me to bring some extra cash in I’m taking on some courier work in my van which prompts the question how shall I do this?

    Shall I set up another Ltd co for the courier business or shall I go self employed and offset all my running costs for the van through my sole trader business…

    I’ve been advised to go VAT registered to claim back VAT on fuel etc etc

    if I go Ltd on both I presume I just draw a dividend as and when or if I’m personally self employed does that prevent me drawing a dividend on business A?

    My Brains frying.

    br
    Free Member

    I’ve been advised to go VAT registered to claim back VAT on fuel etc etc

    No idea but I wouldn’t be going VATable just to claim back a penny a mile.

    craigxxl
    Free Member

    Who does the van belong to, you or the limited company you’ve already setup?
    Is there any reason not to run both activities through the same company i.e going VAT registered for courier work would lose business from the other side due to clients not being able to claim the VAT back from your invoices?

    geordiemick00
    Free Member

    No idea but I wouldn’t be going VATable just to claim back a penny a mile.

    £500 a month fuel bill means £100 a month back

    Who does the van belong to, you or the limited company you’ve already setup?

    owned by me, just claimed AMR so far for any business for business A

    ji
    Free Member

    Get proper advice, as there can be benefits in having both types of company at once (so for example one company buys the vehicle and leases it to the other).

    Blazin-saddles
    Free Member

    I’ve been advised to go VAT registered to claim back VAT on fuel etc etc

    No idea but I wouldn’t be going VATable just to claim back a penny a mile.

    If the company/ies you’re hiring yourself out to are VAT registered then there’s no reason not to. 20% back for nothing.

Viewing 6 posts - 1 through 6 (of 6 total)

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