W-8BEN form - what type is a UK sole trader?

Discussion in 'General Business' started by norfstar, Sep 10, 2005.

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  1. #1
    I've filled in this form several times before, but it must have been before I had a business trading name as I'm stumped as to what type of beneficial owner I am. The options are:

    Individual.
    Corporation.
    Disregarded entity.
    Partnership.
    Simple trust.
    Grantor trust.
    Complex trust.
    Estate.
    Government.
    International organization.
    Central bank of issue.
    Tax-exempt organization.
    Private foundation.

    Now I think I'm an individual, but as my trading name is Starsol.co.uk (which clearly isn't my actual name), is this still the box I should check?
     
    norfstar, Sep 10, 2005 IP
  2. expat

    expat Stranger from a far land

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    #2
    yes.
    Your used "name" is a trading name you are still the poor sould that is responsible for it all..... and the one taxman is going after....

    Expat

    PS

    The advantage of LTD in UK is that you can virtually limit your personal exposure (of which the biggest is that in an event the company gets sued not an idividual) - the basic disadvantage is that you have to declace books once a year and if you deal with any money institutes you will find it hard to obtain money without a personal guarantee which defeats the purpose.
    The other advantage presently is you can take 10k per director as dividents without tax implications.
     
    expat, Sep 10, 2005 IP
  3. norfstar

    norfstar Peon

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    #3
    Cheers :).
     
    norfstar, Sep 10, 2005 IP
  4. Blitz

    Blitz Well-Known Member

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    #4
    Is there a limit on the amount of directors?
     
    Blitz, Sep 10, 2005 IP
  5. dct

    dct Finder of cool gadgets

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    #5
    Are you sure about that, as dividends are still taxable income or do you mean the company doesn't pay tax before the dividends? I'm not an accountant just always interested in saving money from the taxman.
     
    dct, Sep 10, 2005 IP
  6. expat

    expat Stranger from a far land

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    #6
    sorry should have made it clearer the first 10k of profit of a small company are tax free.
    Than there its 19% corporate tax.

    Taking a minimum salary of about 7.5 k in the Uk and you use all your "free" bits. Than there is a taxband of 10% and 23% if you phase it right the tax credit due on dividends above 10k clears your text due.
    (Thus the company actually pays it)

    This is a fine art and you need an accountant for this specifically when you start shifting profits to invistement and split off companies to avoid corporation tax... and so on.

    As directors can be paid mixed eg salary and dividends the game is on.

    Expat.

    PS I'd rather pay my accountant about 800£ for this and about 10£ in tax per year.
     
    expat, Sep 10, 2005 IP