[Closed] Setting up your own business.

Try [url= http://www.ukbusinessforums.co.uk/ ]UK Business Forum[/url]

Or you could try your local Business Link.

Don't even bother with the job centre - complete waste of space geared towards the lowest possible denominator.

What business do you want to start? There might be something more specific out there geared towards your chosen industry.

Depends what you want to do - for me it was relatively easy. Get business account/overdraft sorted. Buy some tools and a vehicle, got some customers already lined up and off I went, but that's a trade..

What do you want to do?

What sort or business? Sole trader or a Ltd? There quite a bit on the government website, especially about tax. There's a lot of specialist forums out there, too.

Job centre? Forget it! You'd be better asking a 5 year old for advice. And I'm being serious! Same goes for any other public sector organisation. Don't know if the Regional Development agencies have actually gone yet, but good riddance to bad rubbish. Worse than useless!!!

Try your local Chambre of Commerce. You'll find people who are actually capable of finding their own arse using both hands

Oh, and good luck. I just hope you know what you're embarking on. Damn nearly killed me. Hope things go better for you

You will find pretty much all you need here.

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&topicId=1073858805

They often do a roadshow around key cities too - I found that useful as we got to ask specific questions face to face.

Good luck.

find someone doing what you want to do, who is doing so well you won't be seen as a threat, and take them to lunch, ask them to act as a mentor - their ego will love it and you get some useful advice.

Thanks everyone. I want to be fully declared self employed as an artist. I was in a well paid job, got made redundant, and had to go on incapacity benefits due to depression (other reasons). After a few months I started drawing and illustrating again. An old contact wanted some work doing so I spoke to the job centre and declared the period I was working and how much I earned. Since then I accepted more work and declared my earnings and my benefit has been adjusted accordingly. I know I am well enough to work full time now as I have been for a while, I've not needed a benefit payment since January, all have been paid back. So i want to stop benefits and set myself up properly, I just don't know were to start. Due to the nature of my work I don't need a loan or anything to get started. I'm not currently listed as a PLC or anything. I expressed my intrest to the job centre who (eventually) put me on a day course which left me even more confused.

Thanks for the links, I'm looking at them now.

I would suggest then that you set yourself up as a sole trader and inform the tax office. You can also register for VAT (but you don't need to until you earn £72k per annum (I think).

Being VAT registered has benefits (you can claim back VAT on purchases) but you also have to charge VAT - not a problem if you are working with businesses (most expect it) but if you are working for individuals it just means you will be 20% more expensive and the additional cost may put them off).

Also speak to a good accountant who can advise what expenses you can put through the business (for example, if you work from home, you can claim a portion of power, heating, phone, insurance etc against business costs) which will lower your tax bills.

Again, if working from home, ensure your domestic insurance policy covers you.

Good luck.

As mf says, sole trader is almost certainly the best option. Just register on the .gov website and you are officially self employed. That's it 🙂 At the end of the year you'll need to fill a tax form out, then pay your tax and NI so you need to keep good records or get an accountant. You can register with a company name or just your own name, if you use a comapny name you still need to put your own name on invoices and other paperwork eg 'Joe Bloggs trading as Catflees Illustrations'

After that its the tricky bit of trying to find work, whatever works for you: website; word of mouth; cold calling; social networking; etc...

Thats good advice from MF. I cant see any benefit to you from being VAT registered so no need to until you hit the earnings limit.

Be very careful to split your business and personal finances. Get a business bank account and start hoarding your invoices in box files, record your income / issue receipts. The tax return is the biggest bind.

Good luck

Good advice from mf. Seconded about getting a good accountant. They needn't cost a lot but they're knowledge is invaluable

Also: Get in touch with your local Chamber of Commerce. We found them really good for advice, not just starting up, but later down the line too

The phrase 'networking' makes me cringe, then brings me out in cold sweats, but your local Chamber will run very informal, unpretentious events where you can make useful contacts. People just like you basically. It may sound ****y, but there's a kind of 'spirit of the blitz' air around running your own business at the moment. Complete with thousand-yard-stares in some cases 😉

You can also look at LinkedIn - set yourself up a good profile and join relevant groups (such as illustration groups and local business ones such as your local Chamber) then try to post up occasionally with interesting topics and to respond to anything you feel you can help with - it is really just another (less stressful) way of networking.

Have you also considered an agent, or talking to local artists shops to see if you can display work or launching a gallery evening of your own?

Any links to your work BTW?

And don't forget that you should put [b]anything[/b] and [b]everything[/b] you possibly can (legally) through the business - if you use your own car to see a client, pay yourself petrol mileage (again, this comes off your taxable profits).

Basically you want your profit to be as low as you possibly can - the less *profit* you make, the less tax you pay.

If you are making loads, look at ploughing some into a pension or spending it on capital expenditure (materials etc).

Just to add - get yourself an accountant. It will cost £300-£400 at year end but they will be able to save you far more than you pay them since they know all the things that you can claim for.

Consider going down the Ltd company route as it's more tax efficient and little more hassle in terms of accounting and reporting.
Also think about vat registration, because if you can get on a flat rate scheme, you will make more money. If your clients are going to be vat registered businesses, then it makes sense.

Good luck - exciting times!

I don't see what real benefits he will get from being Ltd really.

mastiles_fanylion - Member
I don't see what real benefits he will get from being Ltd really.
POSTED 59 SECONDS AGO # REPORT-POST

He'll pay tax at the Corp rate (on dividends) rather than income tax rate.
Also better for [s]fiddling[/s] reducing NI payments.

But added to that the additional accountancy time/cost and transparency of profits etc means much more is in the public domain.

I guess it depends on what the OP wants but I have found there are plenty of ways to benefit from self assessment (such as putting company cars through the business as tax deductible expenses rather than benefits in kind you pay tax on).

From advice I have been given, you really need to be earning around £35k profits before being Ltd is particularly more worthwhile.

If your starting out from scratch and don’t anticipate a high turnover / profit then LTD company and VAT registration is unnecessary – you would have more options to reduce tax costs however its unlikely to be worth the effort for the savings involved. The other major advantage of LTD is the limit of liability / risk – which for an illustrator who will not borrow money is minimal, so no need.

With this sought of business you can always go LTD down the line without too much trouble.

Start simple and go from there.

Start simple and go from there.

Setting up as a Ltd company when your a sole trader can cause a few minor niggles. it can limit lines of credit when setting up trade accounts with suppliers, and overdrafts with the bank, it can also bring greater scrutiny from the tax office.

Good to hear of some one using the welfare state for it's intended use ie getting you through hard times rather than a life long source of income. If you are starting small then it makes sense to pay your voluntary NI contributions. These are less than £3 a week but keep you up to date for the state pension. Once you start to earn more you will have to pay the full contribution. I did a really good 1 day course provided by my tax office. You will be amazed what you can and can't claim for.
As a sole trader, just selling your skills rather than stock, it doesn't make much sense to be VAT registered until you have to or to set up a Ltd Company.
Call your tax office and tell them what you are planning. They are there to help as well as collect tax.

You need to register with the National Insurance people in Newcastle within 100 days (IIRC) of setting up otherwise you get a small fine.

Lots of other good advice above.

From what info you give it would seem setting up a sole trader would be the simplest way to go in the short term.

Keep all receipts. You can also claim for business related cycle mileage and set depreciation of a bike and some other things like repairs against tax. As above a good accountant who deals with small businesses and self employed is worth their weight in gold.

From advice I have been given, you really need to be earning around £35k profits before being Ltd is particularly more worthwhile.

This is why you need a good accountant as bad advice will cost as above. You could be saving up to 50% tax going by going [url= http://www.uktaxcalculators.co.uk/dividend-vs-salary.php ]Limited[/url]

As above a good accountant who deals with small businesses and self employed is worth their weight in gold.

They will save you much more than you'll pay in their fees so long as you get a good accountant.

Business Link and direct.gov provides lots of information on setting up a business.

Call your tax office and tell them what you are planning. They are there to help as well as collect tax.

A word of warning. Be prepared to have fun and games with the tax. The head of HMRC has just publicly apoligised for his department being declared 'not fit for purpose' by an independent parliamentary commission

Anyone who has dealt with HMRC on a business level could have told them that. A complete and utter shambles! I'd like him to come round and grovellingly apoligise to me personally, and give me back the days upon days of my life wasted trying to deal with the various retarded jobsworth ****wits employed by him.

You think you've experienced kafka-esque, labarynthine, pointless, skull-splittingly senseless, petty, mindless bureaucracy?

Not until you've had the pleasure of trying to get any sense out of HMRC you haven't

Buy [url= http://www.waterstones.com/waterstonesweb/products/dianne+m-+baker/running+a+home-based+business/4524142/ ]this book[/url]..

craigxxl - Member
From advice I have been given, you really need to be earning around £35k profits before being Ltd is particularly more worthwhile.
This is why you need a good accountant as bad advice will cost as above. You could be saving up to 50% tax going by going Limited

It isn't always that clear cut and of course I am only giving advice based on my experiences - if the OP doesn't want to run a car it may not be as beneficial to stay as a sole trader (but it WILL be the most simple).

The allowance of £400 a month would need to be backed up by mileage claims same as self employed, employed or director. You can't just give yourself a £400 allowance it must be to cover an expense which can be proved.
A good accountant won't allow such a claim as it's not worth the damage to their reputation or the wrath of the institute for damaging theirs. If you're investigated by HMRC then you the business owner has to prove the expense is legitimate or you'll have the tax to repay plus interest and carried back usually for a minimum if 3 years and this doesn't include the expense of fighting your case with HMRC.

craigxxl - you've clearly been dealing with that rarest of creatures - the 'straight' tax accountant. Was he riding a unicorn by any chance? 😉

I used to spend most of my meetings with our accountants with my mouth hanging open, saying "What? Are you sure that's legal?"

My mate (who has about ten franchises for a well known fast-food chain) was told by his accountant to claim back the VAT on absolutely everything. This stretched to his expensive fitted kitchen. Their attitude being, and I quote:

"**** it! What's the worst that can happen? You'll have to pay it back" 😀

And I stand by my rant above. HMRC are utterly and completely incompetent! Chances of you getting collared by those muppets? zero I reckon. If I went into business again I think I'd be being a lot more 'creative' with my accounting

The allowance of £400 a month would need to be backed up by mileage claims same as self employed, employed or director. You can't just give yourself a £400 allowance it must be to cover an expense which can be proved.

Ohh and the business makes the lease payments, not me personally.

Again good and bad. Their are many means of lowering your tax bill using tax avoidance measures that are legal however tax evasion is illegal. Why risk claiming illegally (tax evasion) a few hundred pounds when HMRC find out and go through your accounts and claim back much more and worse case prosecute you for fraud.
If we are found to have acted illegally then firstly HMRC looks at all our clients more closely and we loose business. If that wasn't bad enough the institute will kick us out making putting us out of business. If thats what his accountant adviced him then they're pretty stupid as it just not worth it.

craig - are you claiming that what I am doing is illegal or that I would be significantly better off being Ltd?

From the figures I have ever looked at it has always been about as broad as it is long.

I agree that 90% of HMRC are muppets but when you come up against an investigator who knows what they are doing then you best have a damn good accountant or it will cost you dearly.
Unfortunately they seem to be going the tax investigation route more and more to refill the treasury. In doing so they have to cover their own costs in the taxes they collect so dig quite deep and tend to target the smaller businesses who don't have the resources to fight them.

I have had a tax inspector go through our books. He sat there in our office for a whole day (there are few more uncomfortable feelings than having one of those ****ers glaring at you all day) going through everything with a fine tooth comb.

After his extensive investigation he concluded that I had underpaid our annual tax bill. Turned out I'd inadvertently claimed the VAT back on some postage stamps. There's no VAT on postage stamps. I think it amounted to about 8 quid. I got a severe telling off! The way he went on about it, you'd think I'd been funneling millions through front companies and offshore tax havens.

Actually... if I'd been doing that, that would probably have been fine 🙄

I had to send our books away to the tax office - they had them for about 2 weeks before telling me all was perfectly in order. I was convinced they would have found something to screw me over.

That would be a VAT inspection and usually a breeze an inspection normally last months and not uncommon to be go on for years. You can actually take out insurance for a couple of hundred to cover you for such events but also provide great help lines covering everything from VAT to employment law so are worth it just for that.

are you claiming that what I am doing is illegal or that I would be significantly better off being Ltd?

From the figures I have ever looked at it has always been about as broad as it is long

In most cases you are better off. In the example of the car lease you gave then you could pay BIK but reduce the Corp tax on the running cost of the car.

or

Pay yourself a basic salary £7475 to use your tax allowance and use this money for car lease leaving you £2675. Take the balance of your £35k as a dividend. You would pay £56 in NI, the limited company would pay £30 NI and Corp tax of £5,494, a total tax of £5580. Compared to Sole Trader NI Class 2 £130, NI Class 4 £2500 and Income tax £5505, total tax of £8135 or an extra £2555 paid in taxes and it doesn't cost that much extra in accountancy fees.

Hmmm interesting.

Just to wade into this one again, I've heard cases where clients refused to consider tenders from business that were not trading as limited companies. That's obviously pure crazy, but if you are working in a procurement department of a large company or public sector organisation, its not difficult to see how it can happen. 🙄

I've heard cases where clients refused to consider tenders from business

In my experience, such storeys are just excuses, business is about contacts, and if the procurement department need to get one of their "contacts" in, they set the rules accordingly.

and if the procurement department need to get one of their "contacts" in

FTFY

Large companies and public sector can insist on limited companies so that they can check their published accounts to ensure that they are in a position/ have the resources to fulfill the contract and not bite off more than they can handle leaving the buyer back at square one and incurring more costs to find another suitable supplier.

Surely any company can insist on anything without giving reason? I didn't realise there were rules.

Short of not giving someone the business because they is black, that's pretty much right. They/you can do what damn well like. That's capitalism

I've read earlier in the thread people not thinking its important to be VAT registered. In reality, it's commercial suicide. A lot of companies will ask for a VAT number at the first point of contact, and if you don't have one they'll just think you're a mickey Mouse outfit and wouldn't touch you with a barge-pole

I've read earlier in the thread people not thinking its important to be VAT registered. In reality, it's commercial suicide. A lot of companies will ask for a VAT number at the first point of contact, and if you don't have one they'll just think you're a mickey Mouse outfit and wouldn't touch you with a barge-pole

The OP is just an illustrator so is likely to be working with individuals or creative agencies (depending on the type of work he produces). I wouldn't imagine not being VAT registered would put either of those groups off in the slightest.

VAT registration is a commercial decision below the threshold as Binners has described and the flip side of it like MF has described with the OP and her clients would begrudge paying VAT.

I think the OP's strength will be in the product in an area where the name and style are more important. Most of the VAT and Ltd company comments have been written by people who work in that type of environment andf that's where that attitude is applied.
If I want Ralph Steadman to illustrate my book, it's Ralph I want irrespective of whether he's a Ltd company or VAT registered, I also don't want a Ralph rip off either.

If I want Ralph Steadman to illustrate my book, it's Ralph I want irrespective of whether he's a Ltd company or VAT registered, I also don't want a Ralph rip off either.

Not if I want Ralph! Oh, you know what I mean... 😆

I have run two successful businesses as limited companies. One, my main source of income, is a business-to-business service provider, it's got a reasonable turnover for its size, a handful of employees, nice offices, etc. It's a limited company, VAT registered, properly insured, the works, and it has to be, there's really no other way of doing what we do.

The other company was set up to handle the income from some creative writing and related merchandise that I did with a friend. It also handled quite a large amount of money for a while, was VAT registered, received international income, and dealt with several publishers, advertisers, and literary agencies. To be honest, knowing what I know now, none of that was necessary, and in fact it made life more difficult for us. The tax advantage was minimal and the hassle was quite significant.

Publishers and other creative industry organisations do not like dealing with people who set up as limited companies unnecessarily. In my experience they are generally geared up to deal with sole traders working as individual tax entities, and setting up as a limited, VAT registered company just causes them headaches without being of much real benefit to a small outfit. I don't think we ever encountered a scenario where we couldn't have proceeded without being a limited company or having VAT registration number.

So, in my opinion, based on what you've said you probably don't need to be a limited company at all, and nowadays you don't need to be VAT registered unless you're turning over quite a bit of cash. At that point you can afford to pay a professional to sort out your money for you anyway.

Which brings me onto my single most important bit of advice to anyone setting up a business: talk to a good accountant as soon as you start making more than pocket money. Paying a good accountant is the best investment you will ever make.

A big thankyou to everyone who has contributed to this thread.

After reading through websites, i have set up an action plan and appointments with the correct people. I will be seeing a few accountants next week after getting local recomendations.

I think a sole-trader is ideal for me, while a LTD seems to have its benefits i dont feel they are going to help me in anyway. I have been commisioned by big name clients prevoiusly and i have not encountred any problems.

Thanks everyone for the encouragement.

David

For those asking to see work:

Graphic work, these were for a record label.

[img] http://www.flickr.com/photos/65939411@N04/6004782388/ ][img] http://farm7.static.flickr.com/6026/6004782388_3f1facb672.jp g" target="_blank">http://www.flickr.com/photos/65939411@N04/6004782388/ ][img] http://farm7.static.flickr.com/6026/6004782388_3f1facb672.jp g"/> [/img][/url][/img]

[img][url= http://farm7.static.flickr.com/6122/6004779820_68399b4d53.jp g" target="_blank">http://farm7.static.flickr.com/6122/6004779820_68399b4d53.jp g"/> [/img][/url][/img]

[img] http://www.flickr.com/photos/65939411@N04/6004236273/ ][img] http://farm7.static.flickr.com/6121/6004236273_f563279616_m.jp g" target="_blank">http://www.flickr.com/photos/65939411@N04/6004236273/ ][img] http://farm7.static.flickr.com/6121/6004236273_f563279616_m.jp g"/> [/img][/url][/img][img]http://[url= http://www.flickr.com/photos/65939411@N04/6004236273/ ]angelina completed[/url] by [url= http://www.flickr.com/people/65939411@N04/ ]david bunn art[/url], on Flickr[/img][img] http://www.flickr.com/photos/65939411@N04/6004230729/ ][img] http://farm7.static.flickr.com/6140/6004230729_3c7c7bf365.jpg [/img][/url][/img][img]http://[url= http://www.flickr.com/photos/65939411@N04/6004230695/ ][img] http://farm7.static.flickr.com/6022/6004230695_ae3866bbe1.jp g" target="_blank">http://www.flickr.com/photos/65939411@N04/6004230729/ ][img] http://farm7.static.flickr.com/6140/6004230729_3c7c7bf365.jpg [/img][/url][/img][img]http://[url= http://www.flickr.com/photos/65939411@N04/6004230695/ ][img] http://farm7.static.flickr.com/6022/6004230695_ae3866bbe1.jp g"/> [/img][/url][/img]

Angelina Jolie, this drawing was for a tutorial. The completed drawing (top) is now in a private collection. The close ups show different types of graphite blending.

[img] http://www.flickr.com/photos/65939411@N04/6004776120/ ][img] http://farm7.static.flickr.com/6026/6004776120_6f31cdf796_m.jpg [/img][/url][/img][img]http://[url= http://www.flickr.com/photos/65939411@N04/6004230649/ ][img] http://farm7.static.flickr.com/6008/6004230649_0e4fc715d9_m.jp g" target="_blank">http://www.flickr.com/photos/65939411@N04/6004776120/ ][img] http://farm7.static.flickr.com/6026/6004776120_6f31cdf796_m.jpg [/img][/url][/img][img]http://[url= http://www.flickr.com/photos/65939411@N04/6004230649/ ][img] http://farm7.static.flickr.com/6008/6004230649_0e4fc715d9_m.jp g"/> [/img][/url][/img]

Pencil portrait for a client.

Watercolour cat for a book illustration.

I have a new website which i will upload in about 4 weeks. It is based heavily around some illustrations for a book that is yet to be launced, so i am not permitted to publish those images as yet. My currently uploaded website is a bit... crap, i was pretty ill when i made it and i think it shows.

Loving the cat illy.

Catflees - can you email me your details - we occasionally need illustrations doing and I also have a long-held idea for a children's book...

(My email is in my profile)

Be careful. I went from running a successful business for ten years to nearly going bankrupt overnight. The main reason was credit control, or lack of. When four of my largest customers went bust in one month I was left with a 98k shortfall to pay my bills.
When that happens you're on your own, everything stops. Like in the movies when the wife has canceled all your cards and emptied your accounts.
That was end of 2009. I spent 2010 paying off people, and 2011 trying to get back on my feet.
This time around I'm going it alone, the banks wont touch me anyway. I choose my customers carefully and I decline politely work that isn't worth taking.
Very tough being self employed in this climate, but my accountant reminds me that I'm covering costs and slowly getting back business whilst many others out there are not.
My plan is to be healthy and ready when and if the economy picks up.
Sorry about the doom and gloom posting, but it ain't all roses.

Though, and this might sound silly. Selling or providing a product that people can see and want and think is nice helps.
I sell to electricains stuff the customer pays hundreds or thousands for but can't ever see, never helps.

how about if you are running a very small business , arounf £11k turnover a year , and have a full time employed job .

is it worth registering with anyone ?

profit must be £8 to £9 k .

You must at least register with HMRC and declare on your tax return as a sole trader or you're not paying tax on all your earnings.

Are you Greek?

as a sole trader i'll give you my two bobs worth. register as self employed with hmrc. start work taking money spending money. use one current account for this and use it for nothing else so you can keep a record of your income and expenditure in one place. if your turnover ( the money you take gross in sales exceeds or exrapolated out theoretically exceeds 72k ps you ll have to vat register. you can vat register with a lower turnover but you have to charge vat on all your invoices.
do your books every couple of weeks/ month using a simplex account book ( staples etc) and at the end of the tax year or before the end of the summer give them to a tax advisor accountant / why/ so they can run an eye over them and claim for all your entitled. which in the main is evrything you buy to sell everything you buy to use ( tools) ( 10k allownace per year). you can claim ofr all business related fuel servicing proffesional fees accomadation phone bills.. the list goes on at the end of the year you may be pleasantly surprised how little tax you have to pay! you ll soon realise that been employed and paying 40% every week is a mugs game. good luck.

you ll soon realise that been employed and paying 40% every week is a mugs game

Never a truer word spoken. Honestly once you've been self employed for a bit you will never go back to being an employee trust me.

Not only do you pay much less tax as a self employed person but you'll have the satisfaction of being master of your own destiny and making your own money.

As a freelancer I sometimes get to work back at one of my old companies. I can honestly say that I feel sorry for those still working there - grinding away day in day out to make the bosses even richer, and then paying lots of tax from their own salary in the process.

I realised I'd done the right thing going freelance when one of my old work colleagues asked me - how come you're never stressed anymore. We were working late at the time. I didn't have the heart to tell him that as a contractor not only is my daily rate twice my old salaried rate but I would also be billing the company for every hour worked over and above the standard 8 hour day. He on the other hand was expected to work his overtime for nothing more than a pat on the back and a vain hope of achieving a small pay rise at appraisal time, much like I used to do.

Not for me anymore!

I also have a long-held idea for a children's book...

It'll send them to sleep in minutes 🙂

Totalshell & Northern Star +1

Although I went/still am going through hell, I will recover and I'd never go back to being employed.
My lesson learnt was to never trust anyone too much when it's your name over the door.

End of this year I have a small housing estate to supply which will be a nice earner and every penny of debt will be repaid by November so a nice clean re-start.

Catflees, lovely work. I wish I had the artistic side too when I see work like that but alas matchstick men are my limit of skill. Good Luck.

It'll send them to sleep in minutes

😉

I also have a long-held idea for a children's book...

Catflees - you are very talented.

Also speak to a good accountant who can advise what expenses you can put through the business (for example, if you work from home, you can claim a portion of power, heating, phone, insurance etc against business costs) which will lower your tax bills.

Be careful with this as you become liable for capital gains tax on the sale of the property (claim a tenth of running costs for business pay CGT on a tenth of the gain in property value).

Couple of months off, but you want to visit The Business Startup Show, at Earls Court http://www.bstartup.com/
Loads of seminars, loads of free advice, exhibitors offering every service you could need, 121 workshops, make contacts, networking & people like James Caan & Duncan Bannatyne speaking. And it's all free. Absolutely brilliant!

Thanks everyone! 🙂

I would stay as a sole trader for as long as you can, the accounting process is far simpler than that for a LTD. As to VAT registration well that's up to you, you may find that some of your clients need VAT invoices (so they can claim the VAT back), which means you in turn will need to be VAT registered - it's pretty painless to set up and administer though.

However if you are going to be taking on significant risk (I.E opening large credit lines with suppliers, long payment cycle times with clients) it might be worth sucking up the extra administration that an LTD requires, as you will be more protected if someone decides not to play ball (a LTD company exists as its own entity and has its own debt, as a sole trader the company's debt is your debt)

I'm currently in an odd position - I take a PAYE salary as a consultant at $big_firm, I am a VAT registered sole trader providing consultancy to other firms (low risk exposure, no need for an LTD), and I am also the director of a VAT registered LTD company (manufacturing - high risk exposure, LTD makes sense). I never planned on it being like this but that's the way it has transpired. Needless to say I have a good accountant, I couldn't juggle the paperwork myself.

The advice from my accountant was to set up, initially, as a sole trader and see how things go. It's easy to set up and easy to get out if things go t**s up.