Sole Traders in Schools

[GoingSolo]

Hi All,

 

Quick question here, to offer IT support in schools, is this doable as a sole trader? Or would I need to setup as a LTD company?

 

I seem to recall reading on here that some schools have issues dealing with Sole Traders but can't find anything about it.

 

Cheers

[rich_tech]

I recall the thread, some schools were saying that they required people to be registered companies as of a certain date.

 

Personally if it was me I wouldnt do it as a sole trader, its not worth the risks financially and a company offers a lot more protection to you as an individual.

 

Its a £15 fee to register your business - though I would do a lot of research on this before signing up on it.

 

https://www.gov.uk/limited-company-formation/register-your-company

 

Edit : found the thread you may have been looking for here - http://www.edugeek.net/forums/general-chat/148366-got-become-limited-company-need-help-choosing-company-name.html

Edited June 24, 2015 by rich_tech

[achedgy]

I operated as a sole trader supporting schools, but did make the move to ltd a few years back. Bit of protection, not having to pay tax up front (thanks mr tax man, wanting tax on money I've not even earnt yet!!!) If you're starting up, you may as well go ltd, not going to hurt!

[GoingSolo]

Thanks for your replies.

 

Out of curiosity, what difference does it make whether to go ltd or sole trader? If I don't intend to lend money, or buy and sell anything - how would this benefit me? If I register as a ltd company it bought tax increases?

[achedgy]

As a sole trader, mr tax man looks at what you earn that year, then wants 50% up front for next year. As a ltd, payment is after the year has finished. This is a big benefit! Being LTd also means if for any reason a customer sued you, for what ever reason, they can only go after the company. not your personal assets (house etc) as a sole trader, if you were sued, you could lose your house... it's unlikely, but possible

[elsiegee40]

Mr gee40 is a contractor and has his own limited company. From a tax point of view he is making a huge saving.

 

It's worth getting an accountant to help you set up though. Mr gee40 did this... despite being an accountant himself; this wasn't the kind of accounting he knew about