If it's a side hussle likely your personal allowance will have been used and national insurance already be paid via main job , if that's the case dividend payments only if you go the limited route . If you go sole trader setup a seperate bank account ( doesn't have to be a business account) and only use that for your hussle it will make accounting far easier come tax time
Thank you so much for such a brilliant video, appreciate this one because I've learned so much with regards to the difference between sole traders and limited companies and the amount you get taxed for each type of business. Thank you
Very interesting, thankyou. I wonder as someone who is creating a retirement business ( currently building workshops, learning new skills and have a 7 year wait for retirement) I should think about creating a limited company, at moment there is no income, only investment! I have a full time job
Great video, very informative and easy to understand thank youuuuu.🖤 I have a question. Will setting up a Limited Company for Amazon fba side hustle effect my 9-5 job I have at the moment with PAYE? Sorry if it’s a silly question just a bit confused
This isn’t entirely true what has been said - some traders can have employees, they can also be liable for VAT as it goes on turnover (unless choosing to register before the threshold) and when taking money out as a director of a limited company is not as simple as ‘everything you take out is like a salary’ you have to ensure that you are only taking from profits otherwise these dividends will be ‘illegal dividends’ - I would advise anyone wanting to make this decision to speak to an accountant first
Hi, thank you so much for this elaborate and educative video, for a beginner like me', on the fundamental differences between the 'Sole trader' and 'Limited company' businesses. It has given me an opportunity to understand that I am, right now, eligible to start my business as a 'sole trader', while doing my day job as an employee. It feels like I have wasted a lot of time with a wrong assumption that I wouldn't be allowed to start a business. I would like to explore more learning material, looking forward to get educated myself, would like to start to grow step by step and day after day!! I am where can I register my company!!? What are the steps of registering the company (as 'sole trader' form in the beginning)? On which website, I can register the sole trader company, what documentation I need to register, and how to get VAT number etc. Thank you so much once again for this informative video!!!
What do you think about buying a house through a limited company? I'd love to move a house (and keep the one I have as a let) but, my mortgage adviser says that the taxes are crazy and he doesn't recommend it. My husband is working on starting his own business. This is why I am wondering about buying the property when his company goes limited. I'd love to hear your opinion on this. Thank you. Jennifer.
As a Sole Trader I have a question: if I put 20k into CASH ISA could I add it to my expenses (so I don't pay any tax on it)? example: if my net profit was 60K can I deduct 20k and only pay tax on 40k? What happens when I withdraw ISA next tax year - do I have to then add it to my earnings?
Thx for the info. Hope you can help... when do you start to register as sole trader? Right from the beginning? And once you're registered, do you need to send a self assessment tax form every year even if you only made less than £500? Thx!
Whats the best thing to do with company profits if you have a day job that puts you into higher rate tax? Do you take the money out and pay 32% dividend tax (+9% student loan) or keep it in the company and withdraw later?
Thanks for the video! Nice to hear about the evolution from sole trader to limited company in 1 place. In terms of setting up a limited company for a blog/yt what sic code would that fall under? Drawing a bit of a blank when searching the usuals ATM. Any advice/direction would be the best
I'm on a Tier 4 Dependent Visa. My wife is on a Tier 4 student Visa. I have started a limited company. Since my wife is a student and she can work only 20 hours per week, can I employ her in my company as a part time person and pay her basic salary i.e. 12k per annum?
Hi there - so in the past I have had Patreon and a Membership group to support my work on UA-cam, but this is an option where you can sponsor a cup of tea to me (£5) and it helps the channel keep ticking over.
Hello! Thank you for the informative video. What do you think is the threshold to switch from a sole trader to a limited company taking into consideration that as a sole trader there is no need of an accountant and as a limited company you will pay 1,5k (annually-London-price) for an accountant. Is it is 50k?
I don't believe you need an accountant if you're a LTD company. All depends on whether you're good with paperwork! Most people do but you can use some software (freeagent/quickbook etc.) to manage everything thats much cheaper than an accountant charging £800+ per year
Is there any way to legally have someone work for you as a sole trader? say there is a month where you know you wont be able to fulfill orders by yourself and you might need to get some help for that time period?
Hi I love your vids and would like to build investment leading into developing a reasonable income the ambition is to be able to draw a small salary inside a year or so (20-30pa) I like your selection of platforms for different activities, what i dont pick up is what sort of income pa or pm do you is reasonable. Can you help?
@@JenniferAMThomson That's impressive, I'm currently looking to start a business too. Could you give me some advice? I'd be grateful if you could help me out
Best video I’ve seen so far on this, thank you!
Glad it was helpful!
Personally had a few Limited companies
*Tax efficient and provides protection for liability*
although it depends what you're doing
What do you do? I am learning and would like to understand your comment based on your experience.
Thanks a lot for this info. One of my best use of time on UA-cam
Glad it was helpful!
If it's a side hussle likely your personal allowance will have been used and national insurance already be paid via main job , if that's the case dividend payments only if you go the limited route . If you go sole trader setup a seperate bank account ( doesn't have to be a business account) and only use that for your hussle it will make accounting far easier come tax time
The timing is perfect! Thank you so much for this video 🥰
This video was literally uploaded just when I needed it. Thank you
Thank you so much for such a brilliant video, appreciate this one because I've learned so much with regards to the difference between sole traders and limited companies and the amount you get taxed for each type of business. Thank you
Glad it was helpful!
very helpful!!!! All this tax stuff is super confusing as an American living in UK but you made things very clear. Thank you!
Very interesting, thankyou. I wonder as someone who is creating a retirement business ( currently building workshops, learning new skills and have a 7 year wait for retirement) I should think about creating a limited company, at moment there is no income, only investment! I have a full time job
Great advice, you have made the Sole Trader advice a whole lot easier and made it easier for me.
Thankyou.
Thanks Jen, needed to make this decision. Think I'll start as a sole trader first 👍🏼
Great video, very informative and easy to understand thank youuuuu.🖤
I have a question. Will setting up a Limited Company for Amazon fba side hustle effect my 9-5 job I have at the moment with PAYE?
Sorry if it’s a silly question just a bit confused
This isn’t entirely true what has been said - some traders can have employees, they can also be liable for VAT as it goes on turnover (unless choosing to register before the threshold) and when taking money out as a director of a limited company is not as simple as ‘everything you take out is like a salary’ you have to ensure that you are only taking from profits otherwise these dividends will be ‘illegal dividends’ - I would advise anyone wanting to make this decision to speak to an accountant first
Thank you Jen. I will emulate you and start off as a sole trader before moving on to LTD company :-)
Thank you, very good info , I would say the best that I got until now.
Glad it was helpful!
Great video, you’ve earned a sub ♥️
Hi, thank you so much for this elaborate and educative video, for a beginner like me', on the fundamental differences between the 'Sole trader' and 'Limited company' businesses. It has given me an opportunity to understand that I am, right now, eligible to start my business as a 'sole trader', while doing my day job as an employee. It feels like I have wasted a lot of time with a wrong assumption that I wouldn't be allowed to start a business. I would like to explore more learning material, looking forward to get educated myself, would like to start to grow step by step and day after day!! I am where can I register my company!!? What are the steps of registering the company (as 'sole trader' form in the beginning)? On which website, I can register the sole trader company, what documentation I need to register, and how to get VAT number etc. Thank you so much once again for this informative video!!!
Thanks I’m thinking about this at the moment however I’m going to wait until after the budget in November
What do you think about buying a house through a limited company? I'd love to move a house (and keep the one I have as a let) but, my mortgage adviser says that the taxes are crazy and he doesn't recommend it. My husband is working on starting his own business. This is why I am wondering about buying the property when his company goes limited. I'd love to hear your opinion on this.
Thank you. Jennifer.
This is really helpful. Thank you so much
As a Sole Trader I have a question: if I put 20k into CASH ISA could I add it to my expenses (so I don't pay any tax on it)? example: if my net profit was 60K can I deduct 20k and only pay tax on 40k?
What happens when I withdraw ISA next tax year - do I have to then add it to my earnings?
As always great info 👍
Glad you enjoyed it
Love the information you provide Jennifer. Thank you.
Glad it was helpful!
Great info. However, you can employ staff as a self-employed business.
Awesome video, thanks very much, still a bit to think about!!
Glad it was helpful!
Really good topic!
Thx for the info. Hope you can help... when do you start to register as sole trader? Right from the beginning? And once you're registered, do you need to send a self assessment tax form every year even if you only made less than £500? Thx!
Brilliantly explained
Great info as usual 🙏🏻👌🏻
I really don’t know what to choice until now
Nice video. Very informative.
Whats the best thing to do with company profits if you have a day job that puts you into higher rate tax? Do you take the money out and pay 32% dividend tax (+9% student loan) or keep it in the company and withdraw later?
So helpful, thank you!
You're so welcome!
Thanks for the video! Nice to hear about the evolution from sole trader to limited company in 1 place. In terms of setting up a limited company for a blog/yt what sic code would that fall under? Drawing a bit of a blank when searching the usuals ATM. Any advice/direction would be the best
I'm on a Tier 4 Dependent Visa. My wife is on a Tier 4 student Visa. I have started a limited company. Since my wife is a student and she can work only 20 hours per week, can I employ her in my company as a part time person and pay her basic salary i.e. 12k per annum?
Very informative, thank you so much
You're very welcome!
£10,000 every month! That is impressive
Hi Jen,
Could you explore and guide on the best Junior S&SI available on the UK market investing Globally for children please.
Thank you
Great tips :)
Thanks for watching!
Great video, can you recommend a good accountant?
Hi, thank you!
In the description, it says "buy me a tea instead". What is that? I have not come across that page before.
Hi there - so in the past I have had Patreon and a Membership group to support my work on UA-cam, but this is an option where you can sponsor a cup of tea to me (£5) and it helps the channel keep ticking over.
Hello! Thank you for the informative video. What do you think is the threshold to switch from a sole trader to a limited company taking into consideration that as a sole trader there is no need of an accountant and as a limited company you will pay 1,5k (annually-London-price) for an accountant. Is it is 50k?
I don't believe you need an accountant if you're a LTD company. All depends on whether you're good with paperwork! Most people do but you can use some software (freeagent/quickbook etc.) to manage everything thats much cheaper than an accountant charging £800+ per year
Is there any way to legally have someone work for you as a sole trader? say there is a month where you know you wont be able to fulfill orders by yourself and you might need to get some help for that time period?
If you are higher tax payer in your full-time job will your income from your side hustle in a Ltd buisness not be paid at the higher rate too?
Great video!
Glad you enjoyed it
Would you say, Sole Trader would work as a Property Investers too?
Once you go for a Limited company you create a legal body that prevents yourself from personal liability
Food for thought think limited is a no brainer
Can you be a sole trader and have a limited company?
Yes you can! :)
11:45 time stamp for limited company
Can you start a sole trading business even if your employed?
Hi
I love your vids and would like to build investment leading into developing a reasonable income the ambition is to be able to draw a small salary inside a year or so (20-30pa)
I like your selection of platforms for different activities, what i dont pick up is what sort of income pa or pm do you is reasonable.
Can you help?
hello there,
what website did you use to register yourself as an LTD company?
TIA
How did you make 120 grand a year on a side hustle?
Started watching.then she said side hustle...thats enough for me..
Can't please everyone sadly......thanks for the comment and wishing you a lovely weekend ahead xx
When you started this channel you earned 10k a month???? 😮😱
No, it took me two years to have that sort of income from my channel, products and full business.
@@JenniferAMThomson That's impressive, I'm currently looking to start a business too. Could you give me some advice? I'd be grateful if you could help me out
Mama fur fur are you a politician I have seen someone looking like you on tv
Nope.....not quite there with my plans for helping folks. Will stick to UA-cam
MamaFurFur ok I thought you were joe swinson lib dems