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Originally Posted by BinhZientek
Excellent article Terry. It confirms why I chose to become a limited company right at the start of the launch of the business nearly 3 years previous. The tax benefits are much better but I agree that the perception and standing of the business is also vastly improved compared to being a sole trader.
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I think the main benefit is in the perception of status rather than anything else. There can be tax benefits but these have to be handled with care as this is an area HMRC will be increasingly looking at as the government runs out of cash. Remember all these banks and multi nationals who two years ago were posting massive profits were paying huge amounts of tax. No doubt that was a good reason for Gordon Brown to turn a blind eye (no pun was intended but it is rather appropriate) on some of the "iffy" financial products. Now GB will be looking to the small guys to make up some of the loss of tax income.