The Virtual Pub
Come Inside... => The Commons => Topic started by: Nick on January 05, 2012, 11:48:52 AM
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or some other legal entity to get me round the IR35 regs. Anyone got any experience? HELP!
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Yes evil:
Avoid doing so if at all possible. The minute you become a Ltd company you will have VATMAN and his best friend Companies House on your neck for annual returns. When I ceased trading as a Ltd company I notified them both but it took a further 7 years to stop them demanding annual returns, sending officers from VATMAN'S office to visit me every few months etc.
If your problem is the need to provide immediate returns (and payment) to HMR&C before the end of January the process of becoming a Ltd company will take to long to avoid the need this year. Using the many advertised "immediate set-up a ltd co" companies that advertise is not wise and often costly.
Speak to your accountant, who I recall you have often sung the praises of. They will tell you your best course of action and if becoming a Ltd Co is the right thing for you to do, for the future, they will be able to set it up but heed the warning I gave earlier. Once they have you they never let go.
My Ltd Co was to operate the pub we had. Despite the fact I could demonstrate that I had ceased trading and had in fact sold the pub they still kept coming back.
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rubschin:
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I have been advised against incorporating several times over the last 25 years and have heeded the advice.
I've read this a couple of times now ( http://en.wikipedia.org/wiki/IR35 (http://en.wikipedia.org/wiki/IR35) ) and still can't think why you'd want to incorporate but then I don't know all the relevant details.
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Two large contractors have work for me, but refuse to give it to me unless it is with my Lim,ited Company. Looks like I have no choice
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PS
Yes I know that should read "Of whom you have often sung the praises"
IR35 is specifically designed to prevent "contractors and consultants" setting up Ltd Companies to avoid tax so I doubt they will let you get away with it. Also as things stand you have only the one set of idiots and regulations to deal with. As a Ltd Company you will have three of them ~ all wanting something different enough to cause your accountant's annual bill to rise. You will also need more bank accounts (at least one more) and banks just love charging fees to small Ltd Companies. Your paper work will quadruple and your records can and will be inspected at times/dates of their choosing throughout the first year until each is satisfied that you are doing it properly ie to their liking. Your life will cease to be your own.
Two large contractors have work for me, but refuse to give it to me unless it is with my Lim,ited Company. Looks like I have no choice
To avoid the necessity of setting up a Ltd Co see if "Factoring" for such clients is a possibility.
All the above is in serious mode.
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Not being registered for VAT cuts out some of the horror whistle:
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Not being registered for VAT cuts out some of the horror whistle:
Contracts can't be that big then! point:
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Once you become a Ltd Company the VATMAN is automatically notified and will be down on you within weeks. They will want to see records regularly to ensure you are indeed keeping under the VAT Registration limits. This will be done by means of visits to your home and/or registered office. They have a legal right of entry without warrant and do not hesitate to use it.
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A mate of mine puts his money through six different companies. NOt one is VAT registered whistle:
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Once you become a Ltd Company the VATMAN is automatically notified and will be down on you within weeks. They will want to see records regularly to ensure you are indeed keeping under the VAT Registration limits. This will be done by means of visits to your home and/or registered office. They have a legal right of entry without warrant and do not hesitate to use it.
scared2:
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A mate of mine puts his money through six different companies. NOt one is VAT registered whistle:
I don't think you should use Baldy as an example... noooo:
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Not being registered for VAT cuts out some of the horror whistle:
Contracts can't be that big then! point:
Sales in excess of £73k pa render you liable for VAT registration if my memory if correct.
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Turnover >£73K and you're exempt ... but they'll be watching noooo:
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A mate of mine puts his money through six different companies. NOt one is VAT registered whistle:
Six sets of returns to Companies House each year ~ he must be mad!
Anyhoo ~ If he is getting that much business he would prolly benefit from being able to claim back VAt as well as pay it.
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Turnover >£73K and you're exempt ... but they'll be watching noooo:
scared2:
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Ackchewly, being VAT registered's not that bad. If you can pick the right scheme you can make money out of it whistle:
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Ackchewly, being VAT registered's not that bad. If you can pick the right scheme you can make money out of it whistle:
Indeed but from my experience trying to deregister is a bloody nightmare.
It's all the other crap that goes with being a Ltd Company that would make me consider other ways such as "Factoring" invoices etc and even turning down business before I went down that route again.
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Agreed. I believe I have the right mix, for me. The next challenge is trying to figure out how to get paid for not working like those wind farms you referred to elsewhere rubschin:
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Geo Osborne did say that he was minded to review the IR35 regs to "simplify" them and encourage start-up companies but in his last budget he said he was going to leave things as they stood until some unspecified date in the future ..... to me that translates as "I'd like to be a true Conservative but the Treasury won't let me".
As for Nick's problem I'd say he needs to speak to his accountant, consider all options (including walking away from the proffered business) and decide if it's worth the additional accountancy fees and personal involvement in his bookkeeping before he goes further. Unless he has a written offer of the business for these two contracts, conditional only on his setting up a Ltd company, my inclination would be that it is not worth the hassle to open that can of worms just because their conditions of tender say that they will only deal with Ltd companies..... becoming a Ltd co just to be able to bid cannot be worth the effort and subsequent continuing grief.
Still I suppose it is proof that there is plenty of work out there and that he doesn't need to re-apply to B&Q to be customer adviser.
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Short and sweet, as my thick and scouse ignorant opinions seemingly carry little credence, but I became Ltd 6 years ago on accountants recommendation.
Little bit of mither and annual expense , but nothing I've lost sleep over. Corporation tax is annual, and amounts to less than the total I was originally paying over two instalements previously, even after the slight increase in accountancy fees.
VAT is great for me. On the cash accounting AND flat rate schemes.
Actually make a decent prodit each 1/4 (usually depending on how busy I've been obviously) which is taxable, but goes towards paying the Corp. tax bill in August.
Make you own mind up like I did.
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All set up Mr Bear :thumbsup:
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I knew our resident VAT expert would be along soon to sort everything out! cloud9:
Where's me fecking Golden Coconut???? cussing:
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I knew our resident VAT expert would be along soon to sort everything out! cloud9:
Where's me fecking Golden Coconut???? cussing:
Vodka n tonic......... rubschin:
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I knew our resident VAT expert would be along soon to sort everything out! cloud9:
Where's me fecking Golden Coconut???? cussing:
Vodka n tonic......... rubschin:
doh:
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All set up Mr Bear :thumbsup:
Which? One or the other or both? Shrugs:
Can't say i've had any bother off either dept tbqh, and obviously hope it stays that way, as they are extremely prickly to deal with I believe, especially HM Customs & Revenue who seemingly have more power then the rozzers even.
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I knew our resident VAT expert would be along soon to sort everything out! cloud9:
Where's me fecking Golden Coconut???? cussing:
Isn't fully grown yet.
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I knew our resident VAT expert would be along soon to sort everything out! cloud9:
Where's me fecking Golden Coconut???? cussing:
Isn't fully grown yet.
sad32:
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You've been demoted to a little acorn whistle: