Do you prefer profit or dividends?
The difference between these two types of income lies at the heart of the distinction between a Sole Trader and a Limited Company.
Here is an illustration:
If you made £50,000* profit, would you prefer to declare all of it as income and pay £13,310 to HMRC, or pay yourself a very small salary, take out the remainder as dividends and save £2,321?
OK, so saving £2,321 is great but what if it came at the price of quite a bit more bureaucracy and