Don't limit your options
...get a Ltd Company
Being your own boss is one of the best feelings in the world, but it comes with a few risks and responsibilities. It’s incredibly important that you start off on the right foot – and that begins by choosing how you want to set up. In general, it’s a little cheaper and simpler to be a Sole Trader. However, depending on the business you’re in, you could outgrow those advantages pretty quickly. What’s more, you could be handcuffing your business to a decision that costs you money and potential customers.
Take construction, for instance. There are insurance rules that can slam doors hard on Sole Traders. In fact, with many jobs, you may not even be able to get on-site unless you’re running a Limited Company. Limited Company set-ups are trickier than working as a Sole Trader. There are more boxes to tick and forms to file, for instance. However, your Limited Company offers a lot more protection for your personal cash and property. What’s more, once you’re bringing in around £40,000 a year, the tax rules mean you’re actually better off as a Limited Company. With the construction skills shortage seeing some electricians already earning as much as £3,000 a week, you could be hitting that £40,000 barrier sooner than you’d think.
Well, it’s got to do with the tax brackets. Once you shift into paying higher rate Income Tax, the yearly tax relief you’re used to getting can drop off fast. Before you know it, you’re not claiming anything back at all. After a certain point, you’re basically being punished for your success. With a Limited Company set-up, the rules will actually leave you better off, taking home more cash for exactly the same work.
So here’s where it gets sticky. Setting up a Limited Company takes time. You’ve got to get your business its own Unique Taxpayer Reference number (separate from the personal one you may already have for Self Assessment). That alone can take weeks. When you’re competing for customers, or waiting to get on site, that’s time you really can’t afford. Here’s where RIFT Formations comes in. Our new service means you can get your Limited Company up and running in no more than a few days, because we’ve already done all the legwork. Your UTR number’s ready to go, meaning you can pick up your new Limited Company “off the rack”. It’s a particularly great option if you’re:
To put it all in perspective, here are a few examples of recent RIFT Formations customers:
It doesn’t matter when in the tax year you start up your new Limited Company with RIFT. You’ll begin getting the benefits straight away. If you need to get registered for CIS or VAT, we can handle that too.
Naturally, if you decide to team up with RIFT Accounting in your new business, we can take care of all your ongoing CIS and HMRC paperwork as well. We’ll set up the perfect RIFT Accounting package for you, and help you build and develop your business for years to come. With our help, you’ll never be stuck without support - or paying for services you don’t need.
RIFT’s teams are experts in tax and CIS, and we specialise in giving new businesses the best possible start in life. It’s never been easier or quicker to launch a Limited Company, and that’s why you’re better off with RIFT.