Limited company

[mlaurac]

I am working for a company as a temp and I have been suggested many times to go limited. I would like to know what would be the benefits and how to register and what would be my responsibilities.
I also would like to set up an online shop. Could I use my limited status as a contractor to also trade online. I am not sure if to register as a sole trader or a limited company, if I register as sole trader the income tax on my additional income would be 40% and if I go limited I believe small companies pay 20% on income tax. Also I have debts at the moment and do not think a bank would open a business account for me which I believe is a requisite to go limited. Would anyone please advise as to what would be the best course of action for me.

[wood1e]

Hi,

If you wanted a register a company you can buy "off the Shelf" then apply to have the name changed. There are many companies that can do this for you. You would then have to complete annual returns to companies house.

For tax purposes and you would be best to check with you accountant, but employees of ltd companies are PAYE as you would be even as a director. Although as a shareholder you could pay yourself in dividends. And pay yourself as an employee a small salary.

I think the Tax on dividends was 19% and there is no NI on dividends. But HMRC are tightening everything up.

If you PM me I can give you details of an accountant that could help you.

[mlaurac]

Many thanks for the advice.

[mark611]

as a limited company you'd have to be audited, why don't you try being a sole trader first..

[stratigen]

Originally Posted by mark611

as a limited company you'd have to be audited, why don't you try being a sole trader first..

Not true. Currently, the turnover threshold which exempts [most] companies from a statutory audit is £5.6 million. So, as long as a business is trading beneath this level, there is no "need" to be "audited" ...