New and old businesses should all consider the pros and cons of sole trader vs limited company tax: http://www.youtube.com/watch?v=uByIoxZ6598&feature=youtu.be Sole trader When starting a business, being a sole trader is the easiest way to do business as this involves much less administration than a limited company. Its easy to register with HMRC at https://online.hmrc.gov.uk/registration/newbusiness The… Continue reading Sole trader vs limited company tax
Tag: dividends
Capital reductions to pay out dividends
Sometimes a company has cash but no distributable reserves, so it can’t pay dividends. Capital reductions can be used in certain circumstances to create distributable reserves which can then be paid in dividends. For example, a company may have issued shares at a premium but initially made losses. Once it becomes profitable and cash generative it may… Continue reading Capital reductions to pay out dividends