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First question do you have an accountant? if no get one who should be able to answer all your questions to your advantage
Hello chaps
After a titanic struggle, I'm now a fully fledged PTS Railway Engineer. I've managed to secure a few shifts from a few companies, one is a PAYE company, but a few use umbrella companies to pay me.
I've been told by a few people within the industry to set up my own Limited Company. Now, I'm as thick as pig shit when it comes to all this, I've always been paid via PAYE from source since I was 16. I did a shift on Monday night, the company took their cut, then an umbrella company took their cut. All I can gather is if I set up my own comapny, the employer pay me direct?
So, as a thicko, what do I do, what are the pitfalls & what are the benefits? Do I have to set up a business bank account? Can I order a company Bugatti & claim tax relief? I have no doubt that a few of you fine people of this parish have done something similar, so in an Idiots Guide to setting up a Limited Company, how do I go about it? Hopefully, a lot more work is imminent, so I want to get the ball rolling.
As always, your valuable input is always welcome
Thanks
Adam
First question do you have an accountant? if no get one who should be able to answer all your questions to your advantage
I FEEL LIKE I'M DIAGONALLY PARKED IN A PARALLEL UNIVERSE
Thanks. I’ve been given a number, but due to Covid, they close at 2. I’ll have to somehow get 5 minutes to ring them before they closeOriginally Posted by mart broad
As said,
There are so many different factors to take into consideration, an accountant really should be your first port of call.
I would echo what everyone has said, get proper advice from an accountant.
And read up on IR35.
Pete
You need to find out from the client/contractor if they are applying IR35 yet, and if so - does your position fall inside or not.
if LTD co, do they not have a list of approved vendors (Agencies) who you would provide your services through?
that would be the normal arrangement. Ltd co can be set up for £100, but you may also require prof indemnity, LTD Co liability and employer’s liability for you - the employee of your company.
there is a lot to consider.
By someone you’d trust I assume? Hopefully so.
Before speaking to them I’d get at least slightly clued up between the options as you move forward, I bet a quick google will give you some useful results.
I use these guys
https://www.accountsnet.co.uk/
They have just been taken over by a larger company but are still going and will offer you advice.
Also worth looking at ipse (independent self employed) site. Lots of info on there.
https://www.ipse.co.uk/p/join-ipse-t...SAAEgJUJ_D_BwE
Contracting was due to change (essentially you’d be treated as an employee for tax purposes with few of the protections) but these changes were delayed due to covid, it’s pretty certain these will come in place in April so chat to an accountant about you’re individual circumstances.
Like others have said ,just get an accountant,it takes a weight off your shoulders if your not sure what your doing.If you get a good one they won’t cost you much ,once there fees are off set against your rebate .
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As others said, speak to an accountant.
Are you looking to set a company up to potentially outsource the work or employ people who could undertake the work ... or are you looking to continue as yourself but change the way you pay yourself ( I.e. small salary / dividends )?
HMRC should be implementing IR35 next April ( delayed this year due to Covid ) which targets ltd companies that are operating like employees. It’s a real grey area, and each case is different, there is also a government IR35 calculator ( not great, but it might help answer questions ). Effectively if you are being paid via PAYE / umbrella then you’re already deemed ‘inside’ IR35.
one thing I would say, if you move to ltd co. now and work with your current company ‘outside IR35’ - but then are forced ‘inside’ after April 2021 - this ‘could’ raise a red flag with HMRC ( I,e. Deemed outside IR35 before, but same contract / company now suddenly ‘inside’ )... again an accountant can help advise better!
Yet another echo of speak to an accountant (they will if they know their stuff always save you more than they cost IME) but I have run a 'close' Limited Company for ten years + and despite the large advantages diminishing year on year (ie div tax relief) and the lack of support come something like Covid it still easily outweighs running as a sole trader in many ways for *us*.
Of course all circumstances are unique and different and there are many factors to consider.
This chap is not an accountant but for the very basics and an intro to some of the advantages it is a great place to start and you will know something before the accountant first meeting:
And:
Last edited by Max...; 2nd October 2020 at 11:01.
There's 20 questions to answer here that will give the correct route forwards... an hour with an accountant will get this done and avoid any costly mistakes.
Accountant all the way. I have never done one piece of paperwork regarding my company except for signing odd bits of paperwork. All for £150/month inc. VAT.
Get an accountant. I use these guys freestyle accounting ltd. Totally online portal etc. They setup my Ltd company, and business account with Cater Allen private bank. They also provide liability insurance as part of the service and check contracts for IR35. They do all the accounts and my personal tax. Expenses etc is all filed online. They have been very good and I've been with them for around 8 years. Give them a call and they will offer you advice. But as others have stated, be very careful of IR35 the rules have changed and a lot of companies are now only offering work under fixed term or inside IR35. The monthly fee is reasonable and if you don't work or don't have a contract they will move you onto a smaller monthly fee, think I only pay around £30 a month at the moment as I semi retired.
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