small business

[kopend]

what sort of turnover would a company need to do to go LTD

if you do about �150,000 per year and are happy to stay not LTD why should you change?

[Buenchico]

There's no minimum turnover required for a limited company. I know of limited companies with turnovers of less than �5000p.a. (run by someone on a part-time basis).

The main reason for creating a limited company is, as the name implies, to limit your personal liabilty. If you're running a company which is not 'limited' then, if things go wrong, you'll be the one who has to pay the bills. So if, for example, somebody successfully sues the company and there's not enough money in the company funds to pay that person then you will lose your house and all your possessions, leaving you penniless and homeless. If the court action had been taken against a limited company, however, your property and possessions would not have been placed at risk.

Chris

[jedimistress]

You don't need to change, but with that turnover, if you provide a service, you will need to charge VAT. You probably know that already. But, that is the only obligation you have with that turnover.

Being a Ltd company carries a lot more responsibilty. Corporation Tax Returns, Annual Returns to Companies House, annual fees to companies house to stay registered, accountants fees etc.

[NiceCupOfTea]

But on the plus side, you can become a director and pay yourself an annual dividen which is only taxed at 10%

[123paul]

The accounting / audit returns & filing obligations at Companies House are greatly reduced for 'small' companies & it sounds like you might fall within that definition.

Limiting your liability is the obvious benefit, though in practice this is usuallu undermined by banks & some suppliers etc insisting on personal guarantees.

There can be tax advantages / disadvantages depending on the type of business you have & the way yu organise it. An hour with an acc before you make the decision would probably be money well spent.

[jedimistress]

Be aware, often tax advantages will be swallowed up by accountants fees.