VAT & Ltd Cos!


#1

Been seeing a few alarming mix ups with these terms recently:

  • VAs adding VAT onto invoices just because they think that’s what goes on an invoice
  • Coaches confusing VAT registration and Limited Company registration (it’s different, believe me!!)
  • VAs setting up Limited Companies for no real reason…

So we recruited Noel to help us out a bit - he’s designed a couple of blogs which should tell you everything you ever wanted to know as a VA about VAT and Limited Companies:



#2

Thanks Caroline. This is really interesting. I am currently a Sole Trader but I do plan to eventually change to a Limited Company, probably in the next financial year, as I want to protect myself.


#3

There’s not that much extra protection beyond what you could get from a reasonable professional indemnity policy & good set of T&Cs.

It does really work if:

  1. You want to sell the business as a going concern
  2. Your turnover/profit is such that the tax benefits of taking the cash as a dividend kicks in.
  3. Your clients insist on you being limited (NHS and government bodies tend to be the worst offenders here)
  4. You want to appear larger than you are… (TBH I’m not sure this really is particularly true any more, anyone can look up the size of your business on Companies House these days!)