ABSTRACT
While most counsellors are happy to function as sole traders, a few will decide to form their own limited companies. There are advantages and disadvantages to both business structures, and to some extent, particular advantages may be dependent on any particular tax regime at the time. For example, when one chancellor announced in a budget that he was abandoning any tax on the first £10,000 of a limi ted company’s profit, many hundreds of thousands of sole traders, many of whom ran very small businesses and would not normally have thought of operating as a limited company, were advised by their accountants to become company directors in a successful move to wipe out all, or most of, their tax bill. Sadly, other chancellors have since reversed that decision.
