Limited Company?

[JohnRS4]

I want to start sales consulting 2/3 days per week and will obviously need to invoice companies etc so was thinking of setting up a limited company. Is this the best option? If so any recommendations of which web based company to go with to set one up?

[davido140]

http://www.companieshouse.gov.uk/infoAndGuide/comp...

Do it yourself, it's a piece of cake.

If you're wanting to be VAT registered, which probably makes sense if you're selling your services to businesses, get the ball rolling ASAP with that one, there are a lot of hoops to jump through these days and it can take months.

Some companies will refuse to trade with you unless you are VAT registered.

[Marky Boy]

If you are going down the VAT route, you should investigate the "Flat rate scheme". Assuming your purchases will be minimal as you are consulting, you will pay output VAT at a reduced rate, at the expense of not claiming input VAT. It will simplify your accounting also.

[N88]

davido140 said:

there are a lot of hoops to jump through these days and it can take months.

What hoops would you be referring to? It's relatively straight forward to become VAT registered.

Flat rate scheme is a good idea, have a look on the HMRC website to see what percentage would apply to you.

ETA- worth getting a quote from a couple of accoutants for the set up the limited company. Although the initial outlay may seem high many of them, such as where I work, offer unlimited telephone support which could come in handy if you're new to the game.

Edited by N88 on Saturday 7th August 12:46

[davido140]

N88 said:

davido140 said:

there are a lot of hoops to jump through these days and it can take months.

What hoops would you be referring to? It's relatively straight forward to become VAT registered.

I'm comparing the VAT reg I did about 14 years ago to the one I did a few years ago (following a lot of changes to due to VAT fraud/money laundering)

It used to be, fill in a form, VAT reg certificate arrives a couple of weeks later.

Now it's fill in a form, provide half a dozen forms of ID, wait 3-6 months.

Not so much hoops, just more stuff to submit and a longer wait. I cant imagine it's got any easier or quicker from the most recent registration I did.