Sole Trader

[Cooperinliverp00l]

Plan B of mine would have me become a sole trader and so i have a Profit question.....

e.g

Turnover = £100
Purchases = £10
Gross Profit = £90

Expenses = £20
Net Profit = £70

Would i have to take the net profit out of the company and declare it as my salary or can it just stay within the company and be re-invested ?

[expat]

Plan B of mine would have me become a sole trader and so i have a Profit question.....

e.g

Turnover = £100
Purchases = £10
Gross Profit = £90

Expenses = £20
Net Profit = £70

Would i have to take the net profit out of the company and declare it as my salary or can it just stay within the company and be re-invested ?

Ah. What company? A sole trader is exaclty that, there is no company in sight.

You are not in the business. You are the business.

[Cooperinliverp00l]

so what is labelled as Net Profit is really my money ??

Should probably stop trying to compare it to my LTD co

[Crossroads]

so what is labelled as Net Profit is really my money ??

Should probably stop trying to compare it to my LTD co

Yes, except your "net profit" is not that - you still need to pay income tax on it. And NI. And probably some other things I've forgotten.

Why soletrader status rather than Ltd? Ltd is likely to be less risk and a better overall return.

[DonaldG]

Your net profit would be your taxable profit, you can draw out whatever is left after paying tax. A limited company is usually more tax efficient (however in some cases it may be better to stay non ltd depending on your personal circumstances).