The £50K Threshold Every Sole Trader Should Know

If you're watching this video, there's a good chance you're a sole trader. Nearly every heating and plumbing business starts as a one-man band, doing everything from fixing boilers to picking up the phone and issuing invoices. But as the business grows, your work evolves. Many start asking the same question: should I think about incorporating? In this video, we'll walk through the why you might want to incorporate, when is a good time, and how you know you're ready. Incorporating isn't always the right choice. Limited companies are a separate legal entity, whereas sole traders are their business. If your profits are exceeding £40,000 to £50,000, you're hiring new staff, or expect significant growth, incorporating is usually a good idea and can be more tax efficient. If you don't fit into any of these categories, you're probably better off as a sole trader. We go into more detail about tax breakdowns and the pros and cons of a limited company in our full blog. Be sure to check that out. Incorporating your business isn't as complex as it sounds. You'll first need to choose a name. This can be the same as your sole trader business with LTD or Limited at the end, as long as it's not already taken. Next, you'll need to register with Companies House, which can be done online. Make sure you have a separate business bank account, inform the HMRC that you need to register for Corporation Tax, and update insurance plans. As a gas registered business, you also need to let GasSafe know. The good news is that you don't need to pay for a whole new registration for your new business, simply a new GasSafe ID card with an indemnity form. Again, more info can be found in our blog. All businesses need an organized and structured way to manage work and keep track of jobs. For heating and plumbing businesses, Gas Engineer Software provides an all-in-one solution for certificates, quotes, and invoicing. Scheduling, customer management, and much more. Find out more by following the link in the description or the bio in our socials. Don't forget to like and subscribe, and of course, thanks for watching.