Selling apps as a UK Ltd company
Barrythe
Member Posts: 82
Hi all, I'm UK based and in the process of deciding whether to sign up as either an ios individual or company developer. I have seen how easy it is to form a ltd company online so this is a very viable option. From what I can tell there are fors and againsts being a ltd company over a sole trader, with the main 2 problems being a ltd company that I can see being:
1. The accounting seems to be quite strict regarding annual accounts and returns, and if this can't be done by myself I cannot afford to pay an accountant to do it for me, so it will only be an option if the accounting can be done by a non-financial expert (me).
2. Corporation tax - as far as I can tell as a ltd company I would be liable to pay 20% corporation tax on any company income, and then presumably will be charged again with income tax on any money I draw out as a personnal salary. So by being ltd I will be liable to pay an extra 20% tax on top of what a sole tradrer would have to pay.
Am I right here or have I got things messed up? Obviously advice from anybody is great but I'm specifically after UK advice regarding this. I've seen on similar threads that some of you run as ltd companies so I'm hoping there are some easy answers here as I've spent days reading up on this and don't know which way to go.
1. The accounting seems to be quite strict regarding annual accounts and returns, and if this can't be done by myself I cannot afford to pay an accountant to do it for me, so it will only be an option if the accounting can be done by a non-financial expert (me).
2. Corporation tax - as far as I can tell as a ltd company I would be liable to pay 20% corporation tax on any company income, and then presumably will be charged again with income tax on any money I draw out as a personnal salary. So by being ltd I will be liable to pay an extra 20% tax on top of what a sole tradrer would have to pay.
Am I right here or have I got things messed up? Obviously advice from anybody is great but I'm specifically after UK advice regarding this. I've seen on similar threads that some of you run as ltd companies so I'm hoping there are some easy answers here as I've spent days reading up on this and don't know which way to go.
Comments
http://gamesalad.com/forums/topic.php?id=15326
Can I ask you as that thread was started a month ago did things work out for you? Presuming you've continued researching etc would you agree with debugdesign that sole trader is the best way to go?
Also a related question - would sole trader let me sign up to apple as a company account (and use my brand name rather than personal name) or would a sole trader have to sign up as an individual developer?