Kona Explosif frame only £799

[Twozaskars]

He wouldn’t be able to escape HMRC with the amount of items / sales he has.

Nothing on companies house suggests he is limited which is surprising and quite a silly way of doing it if so. Theres no way his turnover is below the threshold.

You can be based at home in a bedroom , be a one man band and still pay taxes….

Remember there’s a difference between Tax avoidance and Tax evasion.


View attachment 1020377

What would the benefits be of becoming Ltd?

 

[Twozaskars]

Hardly on par with this is it
https://ebay.us/m/fu5GFe

 

[d8mok]

What would the benefits be of becoming Ltd?

Creative ways to pay yourself , claim more deductibles , pay into pensions and NI savings etc.

Plus he could also make his wife a director and repeat the same again. Plus kids if of working age.

Downside is VAT , and little up side for him as his stock won’t allow him to offset it.

 

[bikeworkshop]

What would the benefits be of becoming Ltd?

You're vattable over 90k turnover whatever your business structure, even nothing at all.

A limited company is its own legal entity, so your home and other assets are protected from legal claims.

The disadvantage is you have to pay another 14% (employers) national insurance, and submit yearly accounts.

 

[Twozaskars]

Sorry, I should have worded that in more detail, I am a director of my family business (but maybe not for much longer) so understand the Ltd ups and downs, money, liability and tax return etc. I was just thinking of the liability aspect. I get it on BW's shop that is providing a service, but someone flogging old tat out of their garage?

 

[d8mok]

You're vattable over 90k turnover whatever your business structure, even nothing at all.

A limited company is its own legal entity, so your home and other assets are protected from legal claims.

The disadvantage is you have to pay another 14% (employers) national insurance, and submit yearly accounts.

But the NI is tax deductible so comes off corp tax anyway so no biggie. Employ 3 people and you can get the grant too.

Plus as a director you can not pay any NI yourself whilst also keeping a full NI record.

 

[d8mok]

Sorry, I should have worded that in more detail, I am a director of my family business (but maybe not for much longer) so understand the Ltd ups and downs, money, liability and tax return etc. I was just thinking of the liability aspect. I get it on BW's shop that is providing a service, but someone flogging old tat out of their garage?

Very easy to be sued if someone fits a 30 year old dodgy part and dies. I personally wouldn’t want to operating without some sort of insurance as a minimum. LTD co keeps you away from all that if the worst happens

Amazon require you have insurance with amazon named on the policy too. I think eBay will go the same way at some point too.

 

[Stressed]

Hardly on par with this is it
https://ebay.us/m/fu5GFe

My word, that's lovely

 

[bikeworkshop]

But the NI is tax deductible so comes off corp tax anyway so no biggie. Employ 3 people and you can get the grant too.

Plus as a director you can not pay any NI yourself whilst also keeping a full NI record.

I was thinking he'd be a sole trader, so no corporation tax afaik.

Big advantage of the limited company thing is putting "company director" on your employment status for insurance, even for motorcycles, bizarrely

 

[bikeworkshop]

Very easy to be sued if someone fits a 30 year old dodgy part and dies. I personally wouldn’t want to operating without some sort of insurance as a minimum. LTD co keeps you away from all that if the worst happens

Amazon require you have insurance with amazon named on the policy too. I think eBay will go the same way at some point too.

I'm amazed ebay can avoid being sued for selling dodgy fireball ebikes.
Some of them have done a million£ damage