UK Tax/Financial Advice for online business earning higher/additional rate 18/19


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SCENARIO:


1. dropped out of university with a student debt of about £40,000

2. started selling Ebooks online august 2019
- Ebooks take off and sell £200,000 worth by April
- not registered as a business
- anticipating to bring out products related to Ebooks
- no current expenses (wrote the ebooks myself)
- all profits went straight into my current account

3. started and registered a business in something different purchasing £4000 worth of stock (no current profits)
- registered as a LTD company
- have a business bank account

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QUESTIONS:

Should they register the Ebook business as a LTD company and create a business bank account?

Would registering as a LTD company and transferring all funds to a business bank account prevent the £200,000 being taxed at 45%? and be taxed at 20% instead? Then a wage can be paid back into the current account?

Can the other business bank account be of any use?

What advice would you give?
 

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