AS a milkman Vic Allonby knows all about bottle - in fact he's got lots of it.

He once needed all of it when he spent a night in Chingle Hall, Goosnargh, said to be England's most haunted house - to raise money for charity.

Now he has used it to take a step on the business ladder - and that has caused a certain amount of hilarity among his milkman colleagues.

He has turned his one-man business into a limited company.

Vic, of Abbott Clough, Knuzden, was persuaded that going limited was the right thing to do by his accountants and business advisers, Mayes Business Partnership of Willow Street, Accrington.

"There are certain tax and national insurance advantages in a self employed person forming a limited company," said Director David Mayes.

"You pay yourself a basic wage and then dividends out of the profits. If you earn £20,000 or more it should be definitely worth your while. In at least 90 per cent of case you are better off by paying less tax.

"Usually you also get a 'window of opportunity' which is a period of up to 18 months where you pay no tax at all. Just think how that would help your overdraft"

Vic, 41, a former finalist in the national Milkman of the Year competition, was convinced and has been a limited company for several months. "I tried to mention it at a National Dairymen's Association meeting. I had all the facts and figures but I was laughed out of the place. I think I will get the last laugh, however."

When Vic first took over the round, on the east of Accrington, 10 years ago he had 450 customers. He now has 600 and delivers 85 gallons of milk, six days a week - that's nearly a quarter of a million pints a year.

"I work hard and I don't mind paying taxes, but if I can reduce my tax bill legally I will do it. After all, I put enough hours in.

"I would advise any other one-man business to have their accountant look at the figures and see whether they can make savings by becoming a limited company," said Vic.

Independent financial advisors say many self-employed people opt to go down the corporate route, but admit that they do not know many milkmen who can put 'Limited' after their names.

"For sole traders, there can be advantages in becoming a limited company, but there are some pitfalls, " said one business advisor.

"The bottom line is that anyone who is thinking of turning his or her business into a company should seek independent financial and legal advice."