Accounting help

[Alexw82]

Hi guys, hope you are all well and enjoying the snow

Im after some advice if possible. I work full time and I am also self employed. Currently, my self employed business is doing well and growing month on month, I run a few affiliate websites that are keeping me very busy.

Is it best for tax/accountancy purposes to stay as self employed whilst working full time, or would I be better setting up a limited company and taking a dividend each month or even going on the payroll?

In my full time job, i get about 26k after tax/NI, my affiliate sites earn me around 1,500-£2000 a month at the minute.

Your help is greatly appreciated Thanks

 

[chinweike]

For tax purposes, it is always better to run an incorporated company. If you are making that much online every month, then you are in good business. All your energy should be concentrated on making it more viable and profitable.

 

[Truemanbrown]

Based on the figures you are quoting, if you leave things as they are you will soon be paying income tax at the higher rate.

Therefore, you should consider transferring the internet business to a limited company. You would be paying Corporation Tax at a rate of 20%. There would be no point in running a payroll but you would be able draw out dividends from post Corporation Tax profits.

I would seek the advice of an accountant asap.