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A Chocolatey Winter Warmer with Toni Kent - news article image

A Chocolatey Winter Warmer with Toni Kent

8 Dec 2016

2 minute read

Last Monday evening we enjoyed our second ever gathering of Literature & Laughter, here at our Oxford offices.

We welcomed over 60 female professionals for an unforgettable evening as we gathered round to hear the hilarious poems and stories told by author and performer, Toni Kent. A few quotes from our guests were:

"another fantastic and inspiring speaker"

"Excited to hear @tonijkent speaking again! I know it will be a good evening. Thanks @shawgibbs"

Amongst the laughter, Toni recalled the story behind how she left her well paid, successful career and started in a new direction as an author and performer - she recalled the challenges she faced stepping into something new.

We all know how daunting it can be to leave something you know and trust to venture out into something new. The pressure, the unknown, the cost. Admittedly, starting in a new direction will always be hard.

Until recently, I took this completely for granted. It was only when my husband set up his own business, and had to make some of the tough decisions involved in starting out, that I really understood these challenges.

From the outset, sometime even before the company starts trading, decisions have to be made about the ‘structure’ of the business. Should I start a company? Should I be a sole trader? This was just one of the challenges faced by both Toni and my husband.

Before I go any further, I just want to give one of those really annoying bits of advice. There is no ‘right’ answer (I’m really sorry, I hate it when people tell me that!)

One of the first things people ask when they have to make this decision is ‘how much tax will I pay?’

I’ve put together a short table summarising the tax payable on various levels of profit to help demonstrate the differences. The tax figures are based on the 2016/17 tax year.

Profit level £ Sole Trader Company Saving
10,000 0 0 0
20,000 3,020 2,520 500
30,000 5,920 5,120 800
40,000 8,820 7,720 1,100
50,000 12,630 10,320 2,310
75,000 23,130 21,470 1,660
100,000 33,630 32,970 660

Disclaimer: The results in the table above are deemed suitable for general guidance only and should not replace professional advice!

The results above are based on an annual salary of £8,000.

But the tax isn’t the only thing to consider! I have put together a short blog about the benefits and drawbacks of trading as a company v sole trader, responding to questions such as which is the most tax efficient way of trading? Do I have to file accounts? How much will it cost?

My blog on ‘how to structure a new business’

If this is something you are considering, I would encourage to you to contact me via email or call on 01865 292 208 for a free initial meeting where we can discuss your requirements for your business.

Whilst my husband chose to set up a company, this may not be the best option for you. Whatever your business requirements, we would love to meet with you to discuss your future.

A Chocolatey Winter Warmer with Toni Kent - news article image

Author:

Christy Kennedy

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01865 292200

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