I would really be grateful for some advice on how best to set up as self-employed given my situation.
I am currently employed but my job will end in the summer and I will receive what is effectively a redundancy payment. I will be earning then from two streams of self-employment: as a photographer and then also doing some unrelated freelance training. For the training I need to set up a limited company - it's the way the company providing the work operates.
The complicated bit: I have bought equipment for my photography business that I wish to claim as capital expenses against tax. If I was a sole trader for the photography business, I could, I believe, deduct these equipment costs as business expenses and reduce the tax liability I have from income earned this tax year through employment, my redundancy payment and any income from the photography business.
However, if I set up a private limited company to run both employment streams, could I only offset the cost of the photographic equipment against future profits of the company (which may be a while away), giving me no relief on the tax I have to pay on my employment income and redundancy payment?
Therefore, sole trader for my photography business looks like the best model, unless anyone can tell me differently.
I am not trying to cheat the system, just find the best way of making the (limited amount of) money I have work best for me, and therefore give me the best chance of success in my business.
Thanks very much.