I do get asked if a sole trader should trade through a limited company.
Changes over recent years in corporation tax and income tax make any tax benefit of incorporation small and taking account of extra costs and the administrative burden in my opinion the main reason for incorporation should be commercial not driven by tax
There are some changes that are currently being enacted which have further implications for limited companies
The company’s Registered Office has to be a place where documents can be served and signed for
A valid email address will have to be provided to Companies House
Directors will have to provide valid ID
But the most important consideration in my view is the fact that all limited companies will have to file a profit and loss account, even micro entities
At this stage there are still discussions about whether this will be for Companies House use only or be publicly available but given all the considerations then its best to take advice before making any decisions, you can contact me here
