help needed, self employed / company tax stuff
Discussion
Right, here is my situation. please go easy im clueless about tax.
I have got my self a 1 year retainer from company X, to be paid quarterly to my company Y (that i haven't "made" yet). about 27k
I will also be looking for a 9-5 job, fingers crossed around the 20k mark, which i will be an employee of someone else.
so questions:
1. how do i start a company + company bank account?
2. Tax wise how does it work? do i pay myself?
3. I have heard about dividends? does this lower my tax?
Basically whats the best thing for me to do, a) pre 20k job and b) post 20k job?
Cheers
Chris
I have got my self a 1 year retainer from company X, to be paid quarterly to my company Y (that i haven't "made" yet). about 27k
I will also be looking for a 9-5 job, fingers crossed around the 20k mark, which i will be an employee of someone else.
so questions:
1. how do i start a company + company bank account?
2. Tax wise how does it work? do i pay myself?
3. I have heard about dividends? does this lower my tax?
Basically whats the best thing for me to do, a) pre 20k job and b) post 20k job?
Cheers
Chris
Fine. There are no tax or legal problems with having a "normal" job and running a separate limited company - providing any employment contracts you might have do not prohibit or restrict such activities.
Would you not consider using the limited company as a conduit for receiving the income from your anticipated "normal" job? Would the activities you envisage carrying out in the two activities be of a broadly similar nature?
If you operate a limited company which only has one customer at any one time, you could run the risk of being exposed to the dreaded provisions of IR35. If a business can show multiple customers it stands a better chance of showing that it is indeed a genuine trading entity and not just a limited company set up avoid or mitigate PAYE and NIC provisions.
Would you not consider using the limited company as a conduit for receiving the income from your anticipated "normal" job? Would the activities you envisage carrying out in the two activities be of a broadly similar nature?
If you operate a limited company which only has one customer at any one time, you could run the risk of being exposed to the dreaded provisions of IR35. If a business can show multiple customers it stands a better chance of showing that it is indeed a genuine trading entity and not just a limited company set up avoid or mitigate PAYE and NIC provisions.
Eric Mc said:
Fine. There are no tax or legal problems with having a "normal" job and running a separate limited company - providing any employment contracts you might have do not prohibit or restrict such activities.
Would you not consider using the limited company as a conduit for receiving the income from your anticipated "normal" job? Would the activities you envisage carrying out in the two activities be of a broadly similar nature?
If you operate a limited company which only has one customer at any one time, you could run the risk of being exposed to the dreaded provisions of IR35. If a business can show multiple customers it stands a better chance of showing that it is indeed a genuine trading entity and not just a limited company set up avoid or mitigate PAYE and NIC provisions.
Hi, That could be possible, both jobs would be in the design industry.. Would you not consider using the limited company as a conduit for receiving the income from your anticipated "normal" job? Would the activities you envisage carrying out in the two activities be of a broadly similar nature?
If you operate a limited company which only has one customer at any one time, you could run the risk of being exposed to the dreaded provisions of IR35. If a business can show multiple customers it stands a better chance of showing that it is indeed a genuine trading entity and not just a limited company set up avoid or mitigate PAYE and NIC provisions.
Where do i start? or is it best to get an accountant to set it all up?
There have been dozens of threads on starting up limited companies on PH - some quite recent.
Setting up a limited company is easier and cheaper now than it ever has been. Most people wishing to set up a company do so over the internet. Do a Google search under "Company Formations" and you will be spoiled for choice.
Word of warning - make sure you search under "UK" as you don't want to set up an Australian or Irish company by mistake
Setting up a limited company is easier and cheaper now than it ever has been. Most people wishing to set up a company do so over the internet. Do a Google search under "Company Formations" and you will be spoiled for choice.
Word of warning - make sure you search under "UK" as you don't want to set up an Australian or Irish company by mistake
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