Do I need a limited company

DJ85 · 27 Aug 2021 at 11:59

Quartz said:
Rather, you will be able to pay her from the company. But you really need to speak to a professional.

I done what was said above and went to a formation website and there is an option to get a free meeting with an accountant to go through everything and see what would work out best for me.
@ahar thanks, I think I would be able to do most of the accountant stuff myself I get enough time off when I'm offshore and quite OCD when it comes to paperwork. Keep everything. But I will have a speak with one first and see what they think is best to do.

Got the consultation coming up next week and I've got all my questions written down to ask and then I'll see how much they'll have to do for me and if I'd manage to do it myself since the directors salary will be so low it'll miss out on income tax/NI, should cut down a lot of paperwork I hope. Just 2 more questions to ask.

Also been told the corporation tax must be paid by an accountant each year is that true?

As for bank accounts I was looking at starling or mettle. Then do you just get a Xerox or quick books type sub and integrate it?
Is it worth getting the payroll add on also? What do you guys use?

Thanks

Quartz · 29 Aug 2021 at 11:05

Something you might ask about is putting your entire salary into a private pension scheme.

Jokester · 29 Aug 2021 at 16:03

David Flett said:
Got the consultation coming up next week and I've got all my questions written down to ask and then I'll see how much they'll have to do for me and if I'd manage to do it myself since the directors salary will be so low it'll miss out on income tax/NI, should cut down a lot of paperwork I hope. Just 2 more questions to ask.

Also been told the corporation tax must be paid by an accountant each year is that true?

As for bank accounts I was looking at starling or mettle. Then do you just get a Xerox or quick books type sub and integrate it?
Is it worth getting the payroll add on also? What do you guys use?

Thanks

If you are already earning a main income, there’s no benefit in you taking a directors salary as your allowances are already used, so it will be taxed on top of your regular salary through self assessment.

Have a look at dividends or as quartz says, pension contributions are a good tax efficient way of getting the money out of the company if you don’t need cash day to day.

You pay the corporation tax bill, can be done as simply as a debit card direct to HMRC, or you can pay your accountant to then pay it.

DJ85 · 29 Aug 2021 at 16:11

I'm earning a main income but my wife isn't. She is struggling to find a Job and as I was wanting to give this a try in my spare time, She is willing to have the company in her name and do all the admin day to day stuff and take a small pay. We was thinking take a pay small enough to not pay income tax, NI but high enough to gain pension benefits, pay the corporation tax at the end of the year and leave the rest in the business.
Thanks Quartz I can add that to my many questions.

Jokester · 29 Aug 2021 at 16:34

David Flett said:
I'm earning a main income but my wife isn't. She is struggling to find a Job and as I was wanting to give this a try in my spare time, She is willing to have the company in her name and do all the admin day to day stuff and take a small pay. We was thinking take a pay small enough to not pay income tax, NI but high enough to gain pension benefits, pay the corporation tax at the end of the year and leave the rest in the business.
Thanks Quartz I can add that to my many questions.

Yep, that’s the way.

DJ85 · 29 Aug 2021 at 16:36

Thats good to hear

Quartz · 29 Aug 2021 at 16:40

David Flett said:
She is willing to have the company in her name and do all the admin day to day stuff and take a small pay

You should ask the consultant whether or not its better for the company to be in her name or yours. When I was a contractor the guide was to have the contractor as the company owner and the spouse to be the secretary.

DJ85 · 29 Aug 2021 at 16:42

OK thank you, would it also work as 2 directors but I do not take a salary?

Jokester · 29 Aug 2021 at 16:44

I would suggest you both want to be owners for dividend purposes.

Quartz · 29 Aug 2021 at 16:47

David Flett said:
OK thank you, would it also work as 2 directors but I do not take a salary?

I paid myself with dividends, but things may have changed since my time. These are all good questions and you should be asking the consultant.

DJ85 · 29 Aug 2021 at 16:48

I have the main idea of what to do hopefully can iron out the rest in the consultation. Yeah I have a whole a4 sheet of things to ask :confused:

Diagro · 11 Sep 2021 at 00:27

David Flett said:
I have the main idea of what to do hopefully can iron out the rest in the consultation. Yeah I have a whole a4 sheet of things to ask

What happened

DJ85 · 11 Sep 2021 at 08:06

Sorry I meant to give an update, good news though I spoke to a few accountancy firms online about it all and then picked one, they said there won't be much to my account but it does get quite confusing with the initial setup and with deadline for things with through out the year ect and payroll even if just directors. But I picked one that I wasn't in a full years contract with and said it use the for the initial 3 months then see how it goes from there.
Been keeping receipts for everything that I have used,bought, set up a starling business account and once im back from offshore on Monday I have my first job on the Wednesday so I Just need to call the accountant and get setup.
I was on Google for hours trying to get my wife setup up for paye but then had no UTR so had to register for self assessment. So hopefully the UTR is through be Thursday next week and I'll hand it over the the accountant to do. a lot easier.
The accountant said a lot of there clients work it the way we are so I'm happier now

Diagro · 11 Sep 2021 at 11:34

Nice.