Hi Nischa, I can vouch for everything in this video; very well presented. I started as a sole trader 16 years ago and formed my LTD company 12 years ago. Never needed to borrow money to grow, but being LTD company has definitely opened up opportunities with bigger corporate clients. Thanks for continuing to share good independent information.👏
Hi Nischa, given that debanking has become more of an issue in the media, could you do an video on dealing with this? This is an issue that effects people on benefits all the way up to peers in the House of Lords; I rent a space out for a mental health charity with local government ties and contracts in good standing, and we've had the problem too. A section on market research would be of particular benefit to people, I think, because different branding doesn't mean they're not part of the same banking group. @@nischa
Thank you for the insights, Nischa! Very helpful. If I may add that another key difference is insolvency/bankruptcy proceedings. In the case of a sole trader, several jurisdictions provide for the liquidation of personal assets, which is an aspect to consider before assuming big risks!
The public record thing is what’s keeping me from registering as a ltd company. My father was an accountant for 45 years, and he said he had quite a few people having had their identities stolen through their details being on Companies House and part of public record.
Hi Nischa! I enjoy your videos. Can you please make videos about stock exchange, investing in company shares etc..making money from money..where do we start? What do we need? Thank you!
5:05 Why is your company paying Corp. Tax on revenue before it's paying you as an employee a monthly wage? Surely wages would count as a business expense and expenses are paid before tax? Company pays you a wage before it pays tax > you the individual is then taxed on that income > business pays Corp. Tax after expenses > dividends are paid out of profits > you pay dividend tax depending on your tax bracket.
Yep, that's right - you're paying corporation tax on profit and not revenue. Income tax is only on your salary/what you draw out (or dividend tax depending on the structure), you don't pay the corporation tax on that. The example assumes you've kept it all in your company
I’m so grateful for you and the content you create for us Nischa. You’re not a gatekeeper and help to educate us on matters we don’t quite understand. Thank you and hope all is well
If the person is interested in taking all/most of the money out from the Limited Company, then they would pay corporate tax + income tax, isn’t it worse than just paying income tax as a sole trader when the amount of money is £200K+ per year
You can take money out of your company as a salary or dividends. Salary is taxed differently from dividends. If you take it out as salary it is an expense to the company and reduces corporation tax. But at the same time you’d pay higher income tax rates. If you take it out as dividends, this would be out of profits, after corporation tax has been paid. However the dividend tax rates are lower. A common strategy is to withdraw part salary and part dividend to minimise tax.
Wow, you are almost at 1M with less than 100 videos 😊 you are so intellectual and eloquent, I have learned so much from watching your videos. Thank you😊
Good video, however you’ve missed one very important point. If you were to extract the profits from the LTD ie pay yourself a salary etc you end up paying double taxation. 25% corporation tax, followed by either tax on dividends or income tax. Therefore you end up paying significantly more especially if you’re a Higher Rate Tax Payer.
Great video. I could have used simple advice like your videos in my past when setting up as a sole-trader (I paid for advice - which was fine, but every bit of information helps). I am interested to invest in this Pilates Ltd, sounds promising 😄
A third option will be to move into a more friendly tax country. If I will generate 1 mill+ in profits/year have no sense whatsoever to pay 400k or more in taxes when just by moving to a sunny place with a 10 to 20% tax for the same amount of money, will save you a lot on the long run.
Thank you very much, I was a sole trader for years, until I got ill. I never had this subject explained to me in a manner I could easily understand fully. Amazing 👏
She must be talking about UK law. Because in the US each state is different. In Florida we have C and S Corporations and LLC's. Delaware is the easiest for out of state companies to in incorporate.
How are you saving money by paying corporation tax rather than income tax? Since surely you still need to pay income tax (or tax on dividends) when taking money out of the company? If you never pay yourself out of the company then what’s the point of having a business?
If im starting a business with another person but we arent taking profits and just reinvesting all profits back into the business, what would be the best option for the type of business we register as? Thank you!!
What about employees and partnerships? How would that work? How can you pay employees if a sole trader or Ltd company? What is a partnership (it seems some businesses such as eBay don't seem to know what a partnership is).
Awesome info great explanation there, it's not in super-super detail but it's breaked down pretty much very nicely which helps in better navigation; although consulting a professional advisior is always better to make more proper decisions!
Hey Nischa, in regards to owning a portfolio of property is it better to have that property in a ltd company or just own them yourself as an individual?
Hey Nischa, thanks for the video but surely that tax implications section here is a little overly simplistic and assumes that the example case doesn't need to spend any money personally beyond their £12,750 personal allowance? If the person needs to pay for things (mortgage/childcare etc.) or wants to put money into personal savings surely the tax calculation completely changes?
No, it doesn't at all This is simply describing what happens with any and all money, it has nothing to do with what that money needs to do You pay for things after taxation, not before
Thank you Nischa. Very useful stuff! I'm starting out as a sole trader / freelance designer. I've not claimed any expenses yet. I'd love to know how much I get back on expenses I claim for. For example I could do with a new computer so am considering how much it will cost minus my claim. Thanks!
Fantastic video, commenting to show appreciation and give back :) thank you - really solid advice.
Hi Nischa, I can vouch for everything in this video; very well presented. I started as a sole trader 16 years ago and formed my LTD company 12 years ago. Never needed to borrow money to grow, but being LTD company has definitely opened up opportunities with bigger corporate clients. Thanks for continuing to share good independent information.👏
Congrats on the growth!
Hi Nischa, given that debanking has become more of an issue in the media, could you do an video on dealing with this? This is an issue that effects people on benefits all the way up to peers in the House of Lords; I rent a space out for a mental health charity with local government ties and contracts in good standing, and we've had the problem too. A section on market research would be of particular benefit to people, I think, because different branding doesn't mean they're not part of the same banking group. @@nischa
Is this your Ai Avatar? If it is congrats on the automation
Hi Nischa, what ethnicity are you?
@@nischa Nischa you forgot to mention the increased accountancy charges that come with going limited.
Thank you for the insights, Nischa! Very helpful. If I may add that another key difference is insolvency/bankruptcy proceedings. In the case of a sole trader, several jurisdictions provide for the liquidation of personal assets, which is an aspect to consider before assuming big risks!
The public record thing is what’s keeping me from registering as a ltd company. My father was an accountant for 45 years, and he said he had quite a few people having had their identities stolen through their details being on Companies House and part of public record.
I have had a 10 year struggle due to exactly this!
Hi Nischa! I enjoy your videos. Can you please make videos about stock exchange, investing in company shares etc..making money from money..where do we start? What do we need? Thank you!
Thought you stopped releasing on Sundays 😢 My Monday morning just got even better 😊
:))
5:05 Why is your company paying Corp. Tax on revenue before it's paying you as an employee a monthly wage? Surely wages would count as a business expense and expenses are paid before tax?
Company pays you a wage before it pays tax > you the individual is then taxed on that income > business pays Corp. Tax after expenses > dividends are paid out of profits > you pay dividend tax depending on your tax bracket.
Yep, that's right - you're paying corporation tax on profit and not revenue. Income tax is only on your salary/what you draw out (or dividend tax depending on the structure), you don't pay the corporation tax on that. The example assumes you've kept it all in your company
I’m so grateful for you and the content you create for us Nischa. You’re not a gatekeeper and help to educate us on matters we don’t quite understand. Thank you and hope all is well
Thanks for sharing this in such clear and concise ways that we can all understand, it's been super helpful!
If the person is interested in taking all/most of the money out from the Limited Company, then they would pay corporate tax + income tax, isn’t it worse than just paying income tax as a sole trader when the amount of money is £200K+ per year
You can take money out of your company as a salary or dividends. Salary is taxed differently from dividends. If you take it out as salary it is an expense to the company and reduces corporation tax. But at the same time you’d pay higher income tax rates. If you take it out as dividends, this would be out of profits, after corporation tax has been paid. However the dividend tax rates are lower. A common strategy is to withdraw part salary and part dividend to minimise tax.
@@IncomeBoost42dividends are taxed massively now also
Wow, you are almost at 1M with less than 100 videos 😊 you are so intellectual and eloquent, I have learned so much from watching your videos. Thank you😊
Good video, however you’ve missed one very important point. If you were to extract the profits from the LTD ie pay yourself a salary etc you end up paying double taxation. 25% corporation tax, followed by either tax on dividends or income tax. Therefore you end up paying significantly more especially if you’re a Higher Rate Tax Payer.
You've ignored National Insurance considerations
@@ccefc85c18what are the national insurance considerations ?
ok so that's what you have to do as a limited company, I am always being told to register my businesses with company house
Great video. I could have used simple advice like your videos in my past when setting up as a sole-trader (I paid for advice - which was fine, but every bit of information helps). I am interested to invest in this Pilates Ltd, sounds promising 😄
Id love to see you on the Diary of a CEO podcast
A third option will be to move into a more friendly tax country. If I will generate 1 mill+ in profits/year have no sense whatsoever to pay 400k or more in taxes when just by moving to a sunny place with a 10 to 20% tax for the same amount of money, will save you a lot on the long run.
I bought a laptop under my own name not my company name but I use it to literally run my business? How can I claim it as tax deductible ?
LLC in Cayman Islands will do the trick.
Thank you very much, I was a sole trader for years, until I got ill. I never had this subject explained to me in a manner I could easily understand fully. Amazing 👏
Thank you so much for making these things that seem complicated easier to understand.
She must be talking about UK law. Because in the US each state is different. In Florida we have C and S Corporations and LLC's. Delaware is the easiest for out of state companies to in incorporate.
Yes, of course she is lol
How are you saving money by paying corporation tax rather than income tax? Since surely you still need to pay income tax (or tax on dividends) when taking money out of the company? If you never pay yourself out of the company then what’s the point of having a business?
If im starting a business with another person but we arent taking profits and just reinvesting all profits back into the business, what would be the best option for the type of business we register as? Thank you!!
What about employees and partnerships? How would that work? How can you pay employees if a sole trader or Ltd company? What is a partnership (it seems some businesses such as eBay don't seem to know what a partnership is).
This Beautiful woman is a Gem!
Awesome info great explanation there, it's not in super-super detail but it's breaked down pretty much very nicely which helps in better navigation; although consulting a professional advisior is always better to make more proper decisions!
Hi Nisha what the best option would be for selling clothes on -line for buy to let investor who own properties in their names.
Thank you for sharing helpful content. Did this mean that a kimited company makes more sense around the 50k mark?
Hey Nischa, in regards to owning a portfolio of property is it better to have that property in a ltd company or just own them yourself as an individual?
Thank you for helpful video can you or anyone suggest income amount as sole trader whereby it’s best to then switch to ltd company in uk?
Perfect starter video 🙏🏾
The paused picture at 3:46 is on point 😂
so which one are you using? sole trader or ltd company? I'm considering this too. 🤔
Super Helpful Luv For Sharing This Info Gangy
Thanks I’m actually going to be starting my own company and was thinking about this.
Hey Nischa, thanks for the video but surely that tax implications section here is a little overly simplistic and assumes that the example case doesn't need to spend any money personally beyond their £12,750 personal allowance? If the person needs to pay for things (mortgage/childcare etc.) or wants to put money into personal savings surely the tax calculation completely changes?
No, it doesn't at all
This is simply describing what happens with any and all money, it has nothing to do with what that money needs to do
You pay for things after taxation, not before
Great info and very well presented - I subscribed Nischa :)
Great video. I am thinking of going down the partnership route. Would LLP be similar benefits to LTD?
184 Beier Cliff
Thanks for the video.
Any external resource on how to access limited companies’ results?
Love your contents! Can you do a video detailing how one can setup a cooperate?
You're always pop up in the right time Nischa :) Meet you soon for the podcast!! :)
Fraud Fraud Fraud. Nischa and RarityAce is a fraud! Give me my money back!
Hi Nischa, commenting to show appreciation. Thank you, keep up the good work!
Also what do you think of quick books
Informative - Thank-you
Which Mic are you using to record audio?
Would you mind doing a video on LLC and LLP too?
Thank you Nischa - amazing video as always.
What's are your charges babe
you look so beautiful..
great advice thanks alot
Thanks my tamil friend
I am Alvaro from Oakville, ON. I like Singapore Lego. Lettuce be friends. Would Nischa type Jedi to H. Jesus? It is my youtube account.
AMAZING VIDEO AS ALWAYS.....THANKS VERY MUCH 💯
I’ve decided to follow
Very helpful. Thanks
Pilates limited is my next business idea 😎
🤣🤣🤣
And now I know.
8:58
There you are 😊❤
Bit late, but I'm here!
@@nischa where?
where?
UNITED KINGDOM🇬🇧🇬🇧🇬🇧
Mam do you earn 150k pound sterlings a year in UK? Plz reply. Thanks a lot.
I only watch this because she’s so damn pretty 🤩
SOLE TRADER is gambling. SOLE TRADER is not a investor.
Thank you Nischa. Very useful stuff! I'm starting out as a sole trader / freelance designer. I've not claimed any expenses yet. I'd love to know how much I get back on expenses I claim for. For example I could do with a new computer so am considering how much it will cost minus my claim. Thanks!