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Author Topic: I need to set up a Limited Company  (Read 2411 times)

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Offline Nick

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I need to set up a Limited Company
« on: January 05, 2012, 11:48:52 AM »
or some other legal entity to get me round the IR35 regs. Anyone got any experience? HELP!
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Offline Snoopy

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Re: I need to set up a Limited Company
« Reply #1 on: January 05, 2012, 12:27:27 PM »
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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Offline Nick

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Re: I need to set up a Limited Company
« Reply #2 on: January 05, 2012, 12:30:57 PM »
 rubschin:
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Offline Pastis

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Re: I need to set up a Limited Company
« Reply #3 on: January 05, 2012, 12:33:31 PM »
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 ) 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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Offline Nick

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Re: I need to set up a Limited Company
« Reply #4 on: January 05, 2012, 12:36:05 PM »
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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Offline Snoopy

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Re: I need to set up a Limited Company
« Reply #5 on: January 05, 2012, 12:39:11 PM »
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.

Quote from: Nick (GC First Class) on January 05, 2012, 12:36:05 PM
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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Offline Nick

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Re: I need to set up a Limited Company
« Reply #6 on: January 05, 2012, 12:43:34 PM »
Not being registered for VAT cuts out some of the horror  whistle:
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Offline Barman

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Re: I need to set up a Limited Company
« Reply #7 on: January 05, 2012, 12:47:36 PM »
Quote from: Nick (GC First Class) on January 05, 2012, 12:43:34 PM
Not being registered for VAT cuts out some of the horror  whistle:

Contracts can't be that big then!  point:
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Offline Snoopy

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Re: I need to set up a Limited Company
« Reply #8 on: January 05, 2012, 12:49:05 PM »
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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Offline Nick

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Re: I need to set up a Limited Company
« Reply #9 on: January 05, 2012, 12:49:59 PM »
A mate of mine puts his money through six different companies. NOt one is VAT registered  whistle:
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Offline Nick

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Re: I need to set up a Limited Company
« Reply #10 on: January 05, 2012, 12:50:36 PM »
Quote from: Snoopy on January 05, 2012, 12:49:05 PM
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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Offline Barman

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Re: I need to set up a Limited Company
« Reply #11 on: January 05, 2012, 12:51:21 PM »
Quote from: Nick (GC First Class) on January 05, 2012, 12:49:59 PM
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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Offline Snoopy

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Re: I need to set up a Limited Company
« Reply #12 on: January 05, 2012, 12:53:23 PM »
Quote from: Barman on January 05, 2012, 12:47:36 PM
Quote from: Nick (GC First Class) on January 05, 2012, 12:43:34 PM
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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Offline Pastis

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Re: I need to set up a Limited Company
« Reply #13 on: January 05, 2012, 12:55:32 PM »
Turnover >£73K and you're exempt ... but they'll be watching   noooo:
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Offline Snoopy

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Re: I need to set up a Limited Company
« Reply #14 on: January 05, 2012, 12:56:34 PM »
Quote from: Nick (GC First Class) on January 05, 2012, 12:49:59 PM
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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