Advice request: Starting limited company

Dirk Diggler

Dirk Diggler

Dirk Diggler

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I'm looking to start a limited company. I work in construction onshore and offshore (and possibly abroad). I want to work limited company as opposed to PAYE and I also intend to venture into working for myself direct to the public as opposed to going through a third party company or agency.

I know this will be more tax efficient, but I'm not interested in every dodge in the book. I'm happy to pay what I should be paying.

Could anyone point me in the direction of online info and possibly a source for set up?

IMPORTANT: The chances are high that I could set this company up and not use it ie remain PAYE as I am now (it's all dependant on opportunity). As such, I don't want to tie myself in knots with expensive accountant fees etc if I haven't traded so to speak.
 
I work with some guys who have their own limited company they got their accountant to sent it all up for like £100 or something I've been looking at it too seems a few places online offer all sorts of packages to set up a ltd company after a quick google.
 
Samueltastic said:
I work with some guys who have their own limited company they got their accountant to sent it all up for like £100 or something I've been looking at it too seems a few places online offer all sorts of packages to set up a ltd company after a quick google.
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Yes, I think it can be done online but I've got a feeling sone of those online companies might be worth avoiding. That's why I'm hoping for a bit of first hand advice.

I used to work with loads of folk who were limited, but not where I am now.
 
And with the budget there is going to be extra 7.5% tax on dividends so saving over PAYE arent anything like as good as they used to be.
 
I don't think it's going to be worthwhile in the long run String. The gov has already started tackling this and it's probably only going to get worse.
 
Good place to start is a company accountant or tax advisor. They often have bolt-on services which is good considering most people wouldn't know what their statutory duties as a director are, as well as corporate obligations. It isn't difficult and just requires a bit of time but sometimes a few hundred quid a year is worth the peace of mind.

Definitely do your homework.
 
String said:
I know this will be more tax efficient, but I'm not interested in every dodge in the book. I'm happy to pay what I should be paying.
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It looks like most haven't read the OP.

I know the legislation changed or is changing, and I think that's a good thing... I've been paying 40% tax for years... I want this move to open up my options with a view to trading direct to client and maybe even employing people some day.

Anyway, thanks for advice so far. I'll get a read through that link. :cool:
 
Maundie said:
I've been looking at going contracting since being made redundant, this website has a lot of good information and have the facility to create you limited company but I think their charge of £120+vat a month is expensive:-

http://www.sjdaccountancy.com/
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£120 / month is quite expensive, plus I'm looking to set the company up and sit dormant until I've sorted out assignments or clients.

I'll get a read through the site though, thanks mate.
 
Just a word of warning - if you create a Ltd company, and then don't do your compaines house paperwork each year, expect a nice letter demanding a £1000+ for not filing your accounts.
 
I've done it and in Construction. Wouldn't go back to PAYE ever.

Setting up the firm is relatively easy however I got an accountant to do all the paperwork and completes all my VAT and all other returns.

You must ensure you have many clients, HMRC will come down on you like a ton of bricks if you only have one client.
 
I pay £70 a month for my accountant, and they do pretty much everything for me.

Would never go back to PAYE unless I had too
 
Not attacking anyone personally but it really annoys me when i read about people starting up one man companies to become more "tax efficient". I work in London and i'm surrounded (something in the region of 40% of my colleagues) by people who are self employed paying themselves dividends and minimum wage. The more creative ones take their salary as long term loans and end up paying an effective tax rate of under 10%.
 
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