[misterrartois]

Hi all....i am thinking of setting myself up as a ltd company.Does anyone have any experience with this??

On the net i have seen you can register as a ltd co for £85?This seems quite cheap,considering all the advantages this brings?

Do you have to have an chartered accountant too?
Any help greatly appreciated!

[prodry]

Register the company yourself direct with companies house. £20.00. or use one of the online services, some of which  only charge £25.00.

Dont register a company unless you are sure that you will use it to trade under, as you will stilll have to supply returns etc to comapnies house for the year. And you have to have it struck off the register if you decide not to use it.

There are pros and cons for becoming limited. Being limited gives you more to claim for and if you take profits as dividends rather  then earnings the tax is lower and you only pay NI on final profit. Your assets are presumably currently owned by you. You can therefore lease them to the new company or sell them to the new company. This will save tax, depending on the value.

You have to have limited company accounts audited annually and you will have to have payroll done every month. More costs/admin.

Also you cant just take money out the company when you need it as you have a resposibility as a director to prove you have the funds to do this and still cover liabilties and tax/ni. You have to draw up a didvided voucher and have minutes of a meeting done if you want it classed as a didvided, otherwise it will be seen as a earnings and tax will be due under PAYE.

Being limited is great if you have a good accountant and your turnover is more than £40k. Otherwise if you sail a bit close to the wind most months, are disorganised and have a numnut for an accountant or do your own accounts (like me), you will come unstuck. I did a few years ago.

Take advice form your accountant, if you havent got one then get one, if not forget the idea and enjoy being self employed as its alot less hassle.


 

[Barry Livingstone]

Cheap up frount but the costs are in the fact you HAVE to get an accountant to do you books.then comapny tax.above you own tax.
stay under 58,000 a year and its not really worth it

[JS2]

Yes, I would agree with my colleagues on this matter.  An accounting audit isn't necessary to satisfy the law unless your turnover is quite high (in relative cleaning terms that is), but you might need it to satisfy a potential lender.  Most cleaners cover their risk by taking out insurance for Public Liability and Treatment Risk, hence the limited liability issue is probably not that relevant in this business.  However there can be tax advantages in forming a Ltd Co., but Mr. Brown makes these less attractive every year and HMR&C can even look at dividend drawings to see if these are being used to create unreasonable tax advantages.  Despite this, a Ltd Co. does get the benefit of a protected name, but beware, it can also make you look like a rather big organisation, which might put off a few people who want to support a small venture, or assume that you're expensive !  So:

1.  get a bit of free advice from, say, The Business Link
2.  assess the risks
3.  go for it !

Hope all this helps.

Regards

Pete (JS2)

[misterrartois]

thanks Guys..your info has been very helpful!

[Derek]

My business has been a Limited Company now since 1973.

Yes I have to have my accounts done by a chartered accountant and Yes it does cost me a bit more.

But I can keep my private monies separate from the business as far as the tax man is concerned...I can get credit more easily...because I am an employee of the company I pay PAYE and am treated as an employee with all the benefits that go with that

If I were to go bust I don't lose my house/personal possessions unless I have deliberately been involved in fraud or put my house up as colateral for a business loan.

I have no regrets and have at this time in my life found that I am better off by being limited 

[carpetguy]

As you can see..........it depends on several factors.

We have a separate business, which went along the limited route two years ago and we very much regret having done so.

The business has no debt, but large debtors, so we won't be going bust owing money, so no risk to property or assets.

The administration cost has escalated considerably and taxation is far higher and demands are monthly, rather than, end of year.

The business has a turnover of approx' £300k, but the additional costs of being Ltd have eaten into the net profit AND..............accountancy charges are higher.

It has to be weighed up for individual businesses, but you must have a good accountant

good luck

rob

[homenclean]

We are ltd and went so under the advice of a long standing friend who owns and runs an accountancy practice. his fees are £1200 per annum and that includes tax & NI calulations. Each month we receive wage slips as a normal employee would. Also we utalise my wifes allowances. Every thing considered we are better off.

John