Hi Reader,

Here's a question that keeps founders awake at 2am: Should I trade as a limited company or stay a sole trader?

We've lost count of how many times someone's asked us this over a coffee or a pint.

The research shows it's not just casual chat—it's a decision that trips up founders constantly. And usually, they're focused on tax savings or how much paperwork they'll face. Sound familiar?

But hold on—we're skipping the most critical point: RISK.

All founders should be asking themselves this first: Am I comfortable with my personal assets being at risk if something goes wrong?

If the thought makes your stomach flip, sole trader probably isn't your best bet—no matter how tempting the simplicity.

🏢 The Limited Company vs Sole Trader Reality Check

Here's how it breaks down:

Go sole trader if:

• You're testing the waters (a low risk idea)
• Your annual turnover is comfortably under £50k annually
• You love simplicity (less paperwork + admin!)
• Personal liability (i.e. your personal assets being at risk) isn't keeping you awake

Go limited if:

• You're growing fast
• You're working with big corporate clients
• You need credibility for funding or to get sales and contracts
• Protecting your personal assets is essential to you.

The sweet spot? Many founders start sole trader, then switch to a limited company when they hit consistent £3-4k monthly revenue.

That's when the protection - and yes, tax benefits - really kick in and often outweigh the extra paperwork.

Just remember, there's no universal "best"—only what's right for your business, your goals, and your comfort with risk.

💰 Is Tide's UK Company Formation Service a Sweet Deal .... Or Hidden Nightmare?

With Companies House formation fees recently surging from £12 to £50 (yes—a painful 300%+ increase!), challenger banks and e-money providers like Tide are jumping in, promising low-cost or even ‘free’ company setups.

Tide even takes it one step further—offering £50 cashback once you've ticked certain boxes, effectively leaving you better off overall instead of out-of-pocket.

Sounds tempting, right?

But before you dive into these ‘bundled banking’ offers, you need to know exactly what's in the small print—and what might be missing.

🎬 Watch our latest video where we break down the real costs, hidden pitfalls, and whether these tempting offers genuinely stack up for your new UK limited company.

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⚖️ New Rules in 2025: What Actually Matters to Your Business

The government's been busy. Here's your no-fluff summary of what's changing and what you need to do now to stay compliant:

• Digital Markets Act (April 6th): Fake reviews are now illegal, carrying fines up to £300k or 10% of global turnover. If you run an e-commerce business, it's time to urgently audit your review processes, remove misleading reviews, and set clear policie—learn more here.
• Companies House Changes: All company directors in the UK must verify their identities under new Companies House rules. It’s tedious and voluntary for now but will be mandatory soon!
• Making Tax Digital (April 2026): No, not everything's going digital-only, but if you're a sole trader or landlord earning over £50k annually, you must keep digital tax records and file quarterly updates from April 2026 (and from April 2027 if earning over £30k). Start preparing your systems now to avoid stress—get the details from HMRC.

Always remember the best business decisions aren't the flashy ones—they're the boring, practical choices you make before you need them.

Whether it's your business structure, banking setup, or compliance processes, getting the basics right early saves you stress, money, and sleepless nights later.

And we're here to help you make better business decisions quicker—right from BEFORE day one.

All the best,

Graeme and Neil

PS: We're curious: What's the biggest business structure question keeping you up at night? Hit reply and let us know—we read every response.