One of the most important decisions to make when engaging in private practice is the type of trading structure to adopt. Ian Tongue gives a round-up of possibilities.
There is no one-size-fits-all approach and it is important to consider your personal circumstances to ensure you are optimised for tax.
Aside from more complex structures for working in groups, the main choices are:
Each of these can have their merits. In some cases, there can be little between them and therefore your personal strategy and overall tax savings need to be considered. The key factors to consider that will shape your choice of structure are:
Size of private practice;
Requirements for cash;
Spouse’s tax status;