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?
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
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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?