We work with a lot of people that operate their businesses as sole traders. For some, this business structure works well, and they can continue to work like this for as long as they want to.
However, we offer all our clients an annual review; this allows us to find out more about how the business is growing and check whether the business trading structure is still appropriate.
We have been supporting one of our clients who was a sole trader for many years. Recently after taking our advice he decided that it was time to review his company structure and move from being a sole trader to a limited company.
One of the main reasons for the change was that he could arrange his remuneration in a more tax-efficient way and not risk personal assets going forward, giving him peace of mind now that the business was much larger.
We performed the appropriate paperwork for the client and advised them on the steps he needed to take to make sure that everything was in place as a Limited Company. Most things stayed the same on a day to day basis, but the main change was that he had to open a business bank account to separate business and personal finances.
In this particular situation, we established that his partner was a low rate taxpayer so we could look to arrange a far more tax-efficient way for remuneration, taking a holistic approach.
The whole process was handled quickly and made simple for our client so that it did not affect the delivery of his service.
If you have been running a business for a few years and you would like to explore different business structures then contact us, we are more than happy to advise you. You can call 01623 490 120 or email