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Where Taxpayers and Advisers Meet

Do you have personal allowance as limited?

RAnderson
Posts:2
Joined:Fri Mar 27, 2020 7:59 pm
Do you have personal allowance as limited?

Postby RAnderson » Sat Mar 28, 2020 10:10 am

So i’m thinking about making the switch soon as corporate tax is 19% in Scotland however when limited is my first 12500 profit tax free?

I’m assuming when your a sole trader that you pay personal income tax just like every other worker rather than corporate tax like every limited business? I’m new to this and would like clarification :mrgreen:

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Do you have personal allowance as limited?

Postby bd6759 » Sat Mar 28, 2020 12:41 pm

Yes. YOU do.

But your company doesn’t, and the income/profits belong to the company.

You’ll get taxed at the personal tax rates on the income you take out of the company.

D&C
Posts:154
Joined:Mon Nov 25, 2019 11:35 pm

Re: Do you have personal allowance as limited?

Postby D&C » Sat Mar 28, 2020 12:44 pm

You really would be better getting an accountant (finding one friends or relatives have used and recommend is one option) as you are clearly way out of your depth.

You and the company are separate entities.


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