If you are a sole trader planning on changing to a limited company, don’t wait until the new tax year in April – do it now!
You will maximise tax and NI savings by switching now as it is earnings at the tail end of the tax year that effectively are taxed the most. Indeed earnings at the beginning of the tax year are effectively covered by the new year of personal allowance so there’s no savings from the company format until later in the tax year.
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.