Sole trader and Ltd?

[gingerjedi]

My Ltd had next to zero income this year but I have a non IT plan B that is going to be a hell of a lot easier to manage as a sole trader.

Can I still be a director of a Ltd and run plan B as a sole trader?

[MarillionFan]

My Ltd had next to zero income this year but I have a non IT plan B that is going to be a hell of a lot easier to manage as a sole trader.

Can I still be a director of a Ltd and be a sole trader?

Yes. I do both. It can be quite useful.

Sole trader income will be added to your Self Assessment. If you make a loss on the sole trader it will reduce your taxable income. Your salary and dividend payments from the LTD go on to your self assessment.

[TykeMerc]

I agree with what MF said, quite possible and I've done the same for most of the last 2 decades.

It's a bit more work on the tax return side, but quite possible and practical. Just takes a little more discipline to keep things seperate for when VAT inspections happen or any tax questions arise.

[RichardCranium]

My wife and I are directors of LtdCo and she is a sole trader for her business.

We've been working that way for some years.

[gingerjedi]

I agree with what MF said, quite possible and I've done the same for most of the last 2 decades.

It's a bit more work on the tax return side, but quite possible and practical. Just takes a little more discipline to keep things separate for when VAT inspections happen or any tax questions arise.

Which leads me to my next question, I guess I can ignore VAT for a while (won't be making much) as that is exclusively for my Ltd right?

[MarillionFan]

Which leads me to my next question, I guess I can ignore VAT for a while (won't be making much) as that is exclusively for my Ltd right?

Yep

For my retail side, I waiting until I hit the threshold as a sole trader. Then registered.

[TykeMerc]

Which leads me to my next question, I guess I can ignore VAT for a while (won't be making much) as that is exclusively for my Ltd right?

Absolutely, different entity from your Ltd and part of the discipline is treating them as such.

You know the benefits and liabilities of VAT already, my sole trader business is VAT registered and not on the fixed rate scheme, but it makes far more business purchases than my Ltd.