chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 Yea I will just take out 25% and leave in to pay tax then a bit to role over or Christmas bonus What happens about national ins? Just every 3 months direct debit? Quote Link to comment Share on other sites More sharing options...
Elby Posted February 13, 2013 Report Share Posted February 13, 2013 Yeah but a bit more, another thing you should pay an accountant for. As a director of the company you will have to pay employer and employee contributions Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted February 13, 2013 Report Share Posted February 13, 2013 (edited) Yea I will just take out 25% and leave in to pay tax then a bit to role over or Christmas bonus What happens about national ins? Just every 3 months direct debit? You get it as a credit because your earnings are too low for it to apply Edited February 13, 2013 by sitsinhedges Quote Link to comment Share on other sites More sharing options...
chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 What are the contributions % wise ? Thx Yeah but a bit more, another thing you should pay an accountant for. As a director of the company you will have to pay employer and employee contributions Sounds good lol You get it as a credit because your earnings are too low for it to apply Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted February 13, 2013 Report Share Posted February 13, 2013 Yeah but a bit more, another thing you should pay an accountant for. As a director of the company you will have to pay employer and employee contributions Well I have never done that Quote Link to comment Share on other sites More sharing options...
Elby Posted February 13, 2013 Report Share Posted February 13, 2013 Well I have never done that My accountant dealt with all that, not sure how it worked for me personally but for people employed by the company the company had to pay employer contributions and out of there wages along with PAYE tax we had to take employee contributions Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted February 13, 2013 Report Share Posted February 13, 2013 My accountant dealt with all that, not sure how it worked for me personally but for people employed by the company the company had to pay employer contributions and out of there wages along with PAYE tax we had to take employee contributions But here we are talking about a one man band being paid a wage that is below the tax threshold and having that topped up with dividends. AFAIK there will be no NI at all. Quote Link to comment Share on other sites More sharing options...
chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 I know you have to do that but don't know what the % are and what you have to earn ect?? That makes spence as well But here we are talking about a one man band being paid a wage that is below the tax threshold and having that topped up with dividends. AFAIK there will be no NI at all. Quote Link to comment Share on other sites More sharing options...
jef Posted February 13, 2013 Report Share Posted February 13, 2013 Do you have anything on tick or an overdraft?? The bank will want security from you if you need credit. JF Quote Link to comment Share on other sites More sharing options...
chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 Just another point as I'm a one man band as me being the director and a payee of the company will I still have a tax code ect and pay my self on that? Quote Link to comment Share on other sites More sharing options...
chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 No I won't need it to start got 3 grand overdraft on my personal acc and a grand on another so safe on that side of things The only thing is my mortgage is up for renewal so might have to renew that before jumping back into self employment Do you have anything on tick or an overdraft?? The bank will want security from you if you need credit. JF Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted February 13, 2013 Report Share Posted February 13, 2013 Just another point as I'm a one man band as me being the director and a payee of the company will I still have a tax code ect and pay my self on that? You need to see an accountant and get some proper answers, not just guesses off a shooting forum Quote Link to comment Share on other sites More sharing options...
Elby Posted February 13, 2013 Report Share Posted February 13, 2013 No I won't need it to start got 3 grand overdraft on my personal acc and a grand on another so safe on that side of things The only thing is my mortgage is up for renewal so might have to renew that before jumping back into self employment You're NOT self employed, you are the director of a ltd company Quote Link to comment Share on other sites More sharing options...
chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 I accept your point but I have all ready leant a lot from this and know and understand more than what I did a hour ago! I have done a bit of research on the web and people are confirming what I have read and made it more simple I have all ways leant to lean from more than one source and then you can put it all to gether and hopefully become a more wiser person!! Or idiot lol Thanks this help is really helpful You need to see an accountant and get some proper answers, not just guesses off a shooting forum Quote Link to comment Share on other sites More sharing options...
jef Posted February 13, 2013 Report Share Posted February 13, 2013 Even so, when your mortgage provider asks for three year's books you won't have them. Get the mortgage first. Then go get an accountant. JF Quote Link to comment Share on other sites More sharing options...
chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 (edited) Yea I understand that but with it being the first year, or not even started I won't have any acc or been employed for long. So it might be easier to sort mortgage out as all ready been employed with proof of my earnings If you understand where I am coming from J You're NOT self employed, you are the director of a ltd company Edited February 13, 2013 by chady Quote Link to comment Share on other sites More sharing options...
Beardo Posted February 13, 2013 Report Share Posted February 13, 2013 A good accountant should save you more than they cost you, be proactive and tell you what you should be doing when it comes to tax Quote Link to comment Share on other sites More sharing options...
chady Posted February 13, 2013 Author Report Share Posted February 13, 2013 Yea agree but if you know and understand it to a good degree you know that your getting a job done right and could do some of the work yourself like the books Pluss I find business very interesting and genuinely want to learn more about it Thanks Jamie Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted February 13, 2013 Report Share Posted February 13, 2013 I have a similar company to yours (albeit vat regd) and my accountant saves me twice what he charges. To go limited without one would be madness. Quote Link to comment Share on other sites More sharing options...
Night blaster Posted February 14, 2013 Report Share Posted February 14, 2013 Do yourself a favour .... Go limited !!! The bare bones is you pay corp tax at 20% on small rate (profits of less than 300k) Self employed you pay 20% tax + 9% class 4 national insurance so 29% in all. Therefore on a 30k profit after personal allowance you pay 6k corporation tax as a company or 8.7k as a sole trader 2.7k tax saving - potentially!! Company documents are filed almost as easy as a tax return just a little more work and know how. PM me and I will give you my number, call me it won't cost you anything and I will happily help. My fees for company books start at £500 and as long as it is in some order there is no need for expensive sage packages! Simple is some times better. There is loads of duff advice on this thread, for a start you can earn £150 per week as an employee not pay any tax or NI plus there are other means to obtain a regular payment from the business. Failing all the above go and see an accountant like myself, steer clear of the older generation they still seem to make a mountain out of a molehill (hence high fees) online filing and services have made the whole process easier for us and has saved us a lot of time. Others take note you may be missing a trick!! Quote Link to comment Share on other sites More sharing options...
Beardo Posted February 14, 2013 Report Share Posted February 14, 2013 Night blaster has summed up my feelings, I'm essentially a sole trader but run as a ltd company (Flat rate VAT scheme) It makes a lot of sense. Quote Link to comment Share on other sites More sharing options...
al4x Posted February 14, 2013 Report Share Posted February 14, 2013 It's the limits and what are acceptable which is where you want an accountant, we pay some ni and tax on the advice given to us so a small amount over your personal allowance and the rest comes as dividends. I would say minimising tax but I do seem to contribute quite well after vat corporation tax company and personal ni and tax. Scary when you add it up all depends what size the company we couldn't live without doing it on sage but I do issue 75 plus invoices a week and we have a fair few suppliers Quote Link to comment Share on other sites More sharing options...
DNS Posted February 14, 2013 Report Share Posted February 14, 2013 (edited) Others take note you may be missing a trick!! Night Blaster: I may have misunderstood, but have you covered personal income tax in your limited company example? If you pay yourself in dividends they are paid out of company profit after corporation tax. Most one-man-bands I know who use the Limited Company option make a saving on national insurance (not payable on dividends) and enjoy the protection of the legal entity which is the Company. The NI saving is worthwhile if you're a very small business. If you get any scale, you need to stop sweating the small stuff. To the OP: just go see a decent accountant. This is not something you either want or need to do yourself - your time is better spent generating the income. Edited February 14, 2013 by DNS Quote Link to comment Share on other sites More sharing options...
kent Posted February 14, 2013 Report Share Posted February 14, 2013 My accountant is very cheap on the face of it ( I married her) issue is it gets blooming hard to hide stuff from her and everything gets done at last minute. Let me say in over 20yrs I have only gone ltd twice and that was purely for protection from business risks beyond issued share capital Quote Link to comment Share on other sites More sharing options...
chady Posted February 14, 2013 Author Report Share Posted February 14, 2013 Thanks well I have been looking at mortgages and looks like I can save a grand over Three years by moving so going to sort that out this weekend. Thx Jamie ill keep you in formed on how I get on Jamie Quote Link to comment Share on other sites More sharing options...
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