24-04-12, 01:13 PM
Speak to an accountant who advertises as specialising in small businesses and go Ltd. company.
I used an umbrella company for 4 years because I was thought ltd co. was too complicated - it isn't.
I pay about £800/year for my accountant, and that includes personal tax returns for me and my wife (you also pay that money from your company account i.e. no tax). They ask you what salary you want to pay yourself and they supply all the figures for tax etc. If you need any specific advice, PM me and I'll run you through the basics.
Word of advice though, it's tempting to play a number of tax avoidance (not evasion!) tricks that are available to contractors running ltd companies- don't play them all (ie don't be the low hanging fruit for the tax man).
For example, my wife isn't a director and I pay myself above minimum wage - I don't claim for cars etc. (but I do claim for mileage) - a good accountant should be able to give you sound advice.
Any expenses you incur can be claimed tax free from you own company, and I have a business account with HSBC that hasn't cost me a penny in 5 years.
One last piece of info: Accountants are now legally obliged to inform HMRC (without your knowledge) if they think you are up to anything dodgy, so play it straight, it's amazing how much money you can save in a year with a nip here and tuck there - all completely legal.
I used an umbrella company for 4 years because I was thought ltd co. was too complicated - it isn't.
I pay about £800/year for my accountant, and that includes personal tax returns for me and my wife (you also pay that money from your company account i.e. no tax). They ask you what salary you want to pay yourself and they supply all the figures for tax etc. If you need any specific advice, PM me and I'll run you through the basics.
Word of advice though, it's tempting to play a number of tax avoidance (not evasion!) tricks that are available to contractors running ltd companies- don't play them all (ie don't be the low hanging fruit for the tax man).
For example, my wife isn't a director and I pay myself above minimum wage - I don't claim for cars etc. (but I do claim for mileage) - a good accountant should be able to give you sound advice.
Any expenses you incur can be claimed tax free from you own company, and I have a business account with HSBC that hasn't cost me a penny in 5 years.
One last piece of info: Accountants are now legally obliged to inform HMRC (without your knowledge) if they think you are up to anything dodgy, so play it straight, it's amazing how much money you can save in a year with a nip here and tuck there - all completely legal.