If you've been wondering when's it's the right time to switch from being a Sole Trader to a Ltd Company then you're not alone.

The Government have made it less attractive to switch with restrictions on the amount of dividends you can take tax free - from £5,000 in 2017/18 to £1,000 in 2023/24.

The other thing you'd need to bare in mind is that you would defiantly need an accountant to file your year end accounts with Companies House and HMRC to make sure that you're working tax efficiently so make sure you add the costs of that to any savings you might gain from going Ltd.

If you'd like a look at what it might look like for you there are a few calculators online which will show the difference in tax between the two like this one here:

https://www.theaccountancy.co.uk/calculators/limited-company-vs-sole-trader-calculator

If you have any questions about this, let us know.