O'Reilly logo

Everyday Entrepreneurs: A Sugar-free, Dragon-slaying start-up guide for the simple small business by Ken Horn

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

15. THE MAN IN THE BOWLER HAT

briefcase.psd

IN THIS CHAPTER WE ARE GOING TO RETURN TO THE two most common choices of business types – sole traders and limited companies – and look at the tax implications of each.

Before we separate the two, let’s look at the common ground: you can use your personal allowance,[1] you can register for VAT, you can employ people including family members and you can recover pre-start costs.

Now the differences.

Tax and the sole trader

Let’s look at an example of the tax position for a sole trader. Using a simple P&L described earlier, let’s say you make £30,000 sales in the first trading period of your business. Let’s also say ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required