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Trading as a Limited Company - a few questions
12-09-2007, 02:20 PM
#1
Hello, this is my first post on the forum though I have been a reader for a while now, and I am searching for help with clarification on a few points if possible.
My business will be a new start up, and, having talked to a solicitor I have decided to run my business as a Limited Company, I am in the UK and I will be working from home as the sole director with 100 % of the shares in the company.
I have read some previous threads on the subject of Ltd companies and found some useful advice, but still have a few questions I hope you can help me with.
1) What factors govern the date a company is deemed to have started trading on. I assume that the date of incorporation is not necessarily the date a company starts trading, would it be the time from which the company starts advertising for customers, perhaps the date the first contract is signed, or perhaps the date from which the first payment to the company is recieved ?
2) I have read on other topics that one way of paying yourself from the company revenue is to take up to the tax free threshold through PAYE and pay yourself the rest in dividends from the net profit less corporation tax.
As I cannot predict how much I will make from this business, or how soon I will recieve any payments to the business, or indeed how frequent or infrequent the money I make will be, how do you go about paying yourself under these uncertanties.
For example, can you pay yourself via PAYE one month and then not again for several months after that, and can each PAYE amount be significantly different depending on how much money you have made at the time?
Can you pay yourself an interim dividend as and when you have built up a significant enough amount in the company account, or do you need to pay yourself dividends at specific times of the accounting year.
Some clarification on this would be much appreciated.
3) I intend to take out Professional indemnity Insurance and Personal Liability insurance, but am a little uncertain as to what to do regarding Employers Liability cover.
As I understand it, an amendment that came into effect on the 28th February 2005 (I dont have enough posts to post the link itself) stated that any employer which is a company that has only one employee and that employee also owns fifty per cent or more of the issued share capital in that company would be exempt from having to have employers liability cover, is that correct and is this still the position today, or have there been any further amendments.
Although I am the sole director the company of course has, indeed has to have a company secretary. Is the company secretary classed as an employee ?
Is there somewhere to contact to get a definitive 'no you dont need employers liability insurance' in writing that is 100 % bulletproof and even then, how do you ensure that you are instantly aware should any ammendment take place at a later date to alter the situation.
Well, it has already developed into quite a long first post, so I will leave it there for now, thanks in advance for any help.
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