ASK & DISCUSS
INDEXSole trader v limited company
8 years, 8 months ago - Stephen Potts
Hi Shooters,
Like most screenwriters, my writing income has been haphazard and low, and declared for tax as a self-employed sole trader. Recent deals mean that may be about to change (thus hope triumphs over experience again...) and I am acquiring some producer roles - which has got me thinking about setting up a company.
My knowledge in this area is thin - so I'd value any tips you might have. Pros and cons? Pitfalls to avoid? Books or on-line guides you would recommend?
Stephen
www.stephenpotts.net
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8 years, 8 months ago - Paddy Robinson-Griffin
Hi Stephen,
I suggest having a bit of a dig through these forums as you'll find a lot of useful background.
The short version is 'it depends', the longer version is that you'll have directors responsibilities and accounting costs as a limited company that don't exist as a sole trader. You do get financial abstraction and if you're working in features it can make sure you get paid directly as opposed to PAYE, but there's a cost to it all. If you do most of the work yourself, your costs as a limited company will be in the region of a grand a year (plus corporation tax, etc). It's something you'd actually have to choose with good reason as opposed to on a casual cointoss.
If you're undecided still, go and see an accountant - this is exactly what they're for.
Response from 8 years, 8 months ago - Paddy Robinson-Griffin SHOW
8 years, 8 months ago - Stephen Potts
Hi Paddy,
Thanks for this.
I've followed some of the threads on SP. Not sure I want director responsibilities, or the extra cost, and my reasons for thinking about it don't justify taking that step yet.
You've helped me decide!
Stephen
Response from 8 years, 8 months ago - Stephen Potts SHOW
8 years, 8 months ago - Paddy Robinson-Griffin
That's probably the right choice, TBH and glad it helped you with your decision :)
Response from 8 years, 8 months ago - Paddy Robinson-Griffin SHOW