Setting yourself Up as a Limited Company

Discussion in 'Finance, Property, Law' started by jack-daniels, Feb 27, 2013.

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  1. Chaps

    Mrs JD will soon have to set herself up as Mrs JD Ltd due to her job......any pointers/tips/hints etc.
    I'm sure that someone on here has done/doing this.

    Ta muchly.
  2. Tell Mrs JD to see an accountant asp. Don't get suckered by these outfits advertising on line that they can set the business, ( registering it at Companies House etc) for a tenner.
    I'm curious why she is forming a ltd company straight off rather than setting up as self employed. If her profit and I mean profit not turnover is under 50k it may not be worth it, as I'd guess what she'll pay in accountants fees plus corporation tax would most likely equal the normal 20% rate.
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  3. There is/was a thread about starting up as Self Employed/ Limited Company etc.

    I think JARROD asked a similar question.

    My wife set her self up a few years back as Self Employed.

    I would reccommending you contacting your Local Tax Office, (not PD5, PD6 etc) and ask about the one day course they do for first timers, starting up as Self Employed or starting an Limited Company. (Two different one day courses).

    Very useful info on both courses and you get free Tea and Biccys.
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  4. This is why come to this esteemed place.....didn't know that. She's going to be sub-contracting for a firm and they said that she had to set herself up so we just assumed it was as a Company. Lesson number 1 learnt....Ta.
  5. I'm a director. What exactly do you want to know? If its just her, it will take 5 minutes and cost £15 through companies house website. If you have more parties involved it becomes a lot more complicated.

    Its not the formation of the company that is difficult, it's understanding your legl responsibilities as a director which can be a bit tricky.
  6. It's just her, our main concern is the tax/NI stuff to be honest, they're going to be paying her a daily rate and it's then up to her to do the rest. It's probably straight forward but as neither of us have done this all tips and hints appreciated.
  7. Apart from the tax, limited company status limits your liability by seperating the company (as an entity which can enter into contracts and so on) from the individual, who does not have this protection if operating as a sole trader.
  8. Most small limited companies don't make a profit :rabbit:. So they don't pay hardly any tax. It's also means you aren't liable to vat bills if you go tits up. Finally you are forgetting about national insurance. Trust me, as long as you are making over 20 k a year, you are better of incorporating.
  9. msr

    msr LE

    It's very easy to set up and run, just make sure you have a good accountant. Check with them what you can claim for and what you can't, and KEEP ALL YOUR FINANCIAL DEALINGS (RECEIPTS, INVOICES, ETC) IN GOOD ORDER AND UP TO DATE.

    Here endeth the lesson.

  10. Don't get a lawyer, don't get an accountant yet. Form a company, it's easy online and guides you through. Your wife is going to pay herself a salary at the tax threshold, meaning no income tax. She will then pay herself dividends, which are not taxed as harshly. Finally she will claim back the rent of the office space in your home, rent of your car, fuel, lunches related to work... Coffee for the staff kitchen... Her company won't make hardly any profit, if any at all. But the tax man won't get too close to too much of her money.
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  11. TheIronDuke

    TheIronDuke LE Book Reviewer

    Alternatively go to the local zoo for the day. You will see exotic animals many of whom have bare bottoms.

    You do not need to engage with the tax reptiles for 18 months and you do not need to engage with the VAT ******* until you hit £70k pa turnover so **** 'em for the moment.

    Your bird will need a bank account. Easiest way is to setup "Mrs JD / Trading as Ms JD Toilet Cleaning Services". Sole trader.

    There is more on this in the thread jarrod started as mentioned above.

    You do not need an accountant until you have something to account (12 months from now) but have a chat with a cheap local book-keeper?
  12. Thanks everyone! I'll tickle your balls if ever I bump into you!
  13. I found an accountant does everything for £170 a year. Was recommended by my barber.
  14. I spent 15 years as a contractor, working through my limited company, good accountant is a must. Lots of good advice here:

    Professional Contractors Group
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  15. Does everything badly. An accountant is not something you want to scrimp on...