I had the pleasure of being a guest on BBC Radio 4 Money Box Live on Saturday, discussing the pros and cons of trading through a limited company following the Spring Budget. For those of you who had better things to do – hopefully all of you! – you can listen to the show here.
For the show, I had prepared some figures showing that the tax saving from using a company at a profit level of £40k will double over the next few years – from £1,100 now to £2,200 in 2020/21. This is because of the cuts in corporation tax and the change to Class 4 NICs announced last week.
However, as I pointed out, the potential tax saving is only one factor and using a limited company may not be for everyone. If you are considering trading through a limited company, please seek advice before you make a decision.
If you would like some assistance or have any questions on the above or any other areas of accounting or tax, please contact us at firstname.lastname@example.org
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