Changing from Sole Trader to Ltd Company

[NSR Mick]

I have recently registered my company name and will be changing from me trading as to being the Ltd company.

What's involved in the change over? I take it I'll have to tell the bank and HMRC but is there anything else I need to consider.
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If you dont like the way that I ride.......Stop trying to keep up!!!

[mark83]

Basically, you have to register at Companies House and you'll have to start filing abbreviated accounts.

There will be tax implications and you'll have to plan on what is the most tax efficient way of extracting cash from your business (i.e. salary / dividends / pension / benefits)

I am a qualified chartered accountant and could go on, but I would suggest you get yourself an accountant who will guide you through all this stuff. He'll be worth his fees in tax planning alone.
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[D O G]

/\ Wot he said /\

Biggest thing is the change in extracting the earnings - previously the whole profit of your operations was deemed as your personal income, and taxed as such.

Now, the profits of the business will be subject to corporations' tax, and anything you extract is your income, which will then be taxed.

You really need to get a decent accountant on the case (tho I presume you will have one if you have been self employed previously), someone who will be able to plan your tax and give you continual advice as you hopefully expand.