Thread: Tax in the UK
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Old 11-29-2007, 07:44 PM
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You have to be very careful using a LTD co though as you can not simply withdraw money like you can with being a sole trader. A Ltd co is a third party entity in law, and writing a cheque to yourself is technically stealing. You might also have to pay employers NI as well as Employees NI also any dividends you pay yourself automatically atract the dividend tax of 19%.

Just open a separate bank account for the business and run the money through that as a sole trader.
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