Originally Posted by neilm

If you set up a Limited company, which is easy, they can be bought off the shelf for around £100, you can then be a shareholder and a director of that company without being employed by the said company.

That way you can take a share dividend from the profit of that company, which if you arent already earning enough to put you in the 40% tax bracket, will only be subject to corporation tax that will be paid by the limited company.


I would suggest you talk to an accountant before you go any further, they will be able to explain the pros and cons of running this business in the background while working elsewhere and how you can get money out of the business in the most tax efficient manner

Going VAT registered from Day 1 is easier because you dont have to worry about crossing the threshold later on down the line and you can reclaim VAT on the goods you are purchasing from day 1.