Jump to content

limited company.


foxnet22
 Share

Recommended Posts

I've just recieved an email from agency that supplies me work stating from 6th April I cannot get any more work from them as self employed sole trader.I now must become a limited company.they also offered to put me in contact with an accounting company who can help set all this up.sounds abit fishy to me can anyone shed some light on this matter thanks.

Link to comment
Share on other sites

You can write off the accountant costs as a genuine business expense if you go it alone.

 

If businesses are being scrutinised under IR35 rules then it is often easier for them to deal with other limited companies.

 

If you are 100% engaged in activities for them and a sole trader then effectively you are an employee and they need to pay NI for you and complete PAYE records.

Link to comment
Share on other sites

Umbrellas have a limited life span with the announcement about not being able to claim expenses from 2016 (budget red book)

 

The tax man/government is definitely after ltd as well - wait and see

If people are abusing the system through a ltd company then they deserve to be investigated.

 

There is a huge scope of legitimate tax management opportunities as a ltd business, but people still need to play fair.

Link to comment
Share on other sites

No need to incur the cost of an accountant at this stage. I use an online company set up agent and they did all the web filling at companies House, and legal stuff. cost £50 I think. Depending on your turnover you may not need to file audited accounts anyway.

Link to comment
Share on other sites

As written above, if you work mainly for the one agency, the agency will be at risk of being assumed to be your employer and incur employers NI charges, and also have to set you up in a pension scheme.

 

All of this is avoided by their dealing only with limited companies.

 

The major advantage of using a limited company is that, if you are in the higher tax bracket, you can pay yourself in dividends at a lower tax rate (once you have paid yourself minimum wage) rather than at the higher tax rate, if you made all your payment to yourself as salary

 

Also, if you have a non-taxpaying wife, it would be sensible to pay her a wage (as, say, company secretary) to use up her tax allowance.

 

As employees of your own company, you would still need work-place pensions.

 

As always, however, if this does not make sense, talk to a Chartered Accountant

 

No need to incur the cost of an accountant at this stage. I use an online company set up agent and they did all the web filling at companies House, and legal stuff. cost £50 I think. Depending on your turnover you may not need to file audited accounts anyway.

 

This too for the initial set-up, but seek advice on your remuneration strategy

Edited by amateur
Link to comment
Share on other sites

If people are abusing the system through a ltd company then they deserve to be investigated.

.

Totally agree - I have arguments with my accountant over the amount of salary I take.

 

However they are after us to try and deem us as an employee of the client (IR35) when we get absolutely no employee benefits (holidays/sick/pension etc....) as well as having to pay employers and employees NICS

 

The original draft for IR35 put the onus on the client/agency for the extra tax liability when Hector deemed that it came into play. After some heavy lobbying it was put back onto the contractor who was providing services in good faith

Link to comment
Share on other sites

speak to a proper qualified accountant if you don't already understand all the implications. Setting up as ltd isn't hard, there is so much being said here that isn't 100% correct that you honestly have only one call to make and that is to a decent accountant, have your list of questions prepared.

 

Good luck whatever you chose to do just make sure its your choice

Link to comment
Share on other sites

I've just recieved an email from agency that supplies me work stating from 6th April I cannot get any more work from them as self employed sole trader.I now must become a limited company.they also offered to put me in contact with an accounting company who can help set all this up.sounds abit fishy to me can anyone shed some light on this matter thanks.

We use a few contractors ,end of last year they were told they had to go limited end of the day it's better for you

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...