Goochie

If I start my own company will I have to start filling in self assesment every year from here on?

GaryK

Yes.

Next Question.

Gary

beemerboy

and vat, if yer flogging stuff!!!

you'll be up till the wee small hours like me cooking the books...
erm, i mean balancing the figures.

BB

Tiggs

"If I start my own company will I have to start filling in self assesment every year from here on? "

what option did you think may exist other than that?

T

NACRO

tax avoidance perhaps?

Goochie

well I'm only in the "thinking about it" stage right now.

Any advice would be greatly appreciated. I assume setting up a limited company is the way to go go?

DVS

Could always get someone else to cook your books for you... The tax savings of having your own company would probably pay for them.

Scooby96

Of course find yourself a good accountant to lose any profit for the first 2 or 3 years!!

Goochie

What would loosing profit achieve?

How do I go about paying myself?

How do i put money into the company to start with?

Mr.Cookie

I'd sugest going to you bank and talking with there personal bussiness advisor, if they don't help much, change banks

TopBanana

My accountant does mine. It doesn't take him long

dr_ming

Self assesment for your own tax return sure, but assuming you're starting a limited company, a good accountant is a must for your annual return (to Companies House), and your corporation tax return (to our good friends at the Inland Revenue). A good accountant will guide you as to what you can get away with, and what you can't. IMHO, having the forms submitted by a reputable accountant reduces the chances of you being investigated. Note that you don't have to be VAT registered unless your turnover exceeds about £50k (check the Customs and Excise web site for the exact amount).

DRUNKNORGY

The Pikey who did my Drive and runs around in a brand new S class Mercedes could probably sort out your tax for you, He never gets hammered (yet )

RON

Be careful with VAT, ity's not annual turnover that matters, if you go over 1/4 of the threshold amount in ANY three month period, then you need to be registered, otherwise it'll hit the fan!!!

dr_ming

Ron. You are correct. I stand corrected

Lois

I am interested in this thread ..some one is trying to get me to set up as a business and I am still unsure it will save me any money or make me any ..so carry on with the advice so i can read up on it all

TopBanana

You probably want to be VAT registered if most of your clients are businesses

Poor Guy

hehe, cooking the books

beemerboy

i been running for 3 months now, already had the Customs and Excise knock on the door (i was out) but they still wanted a list of all my clients, copies of all my invoices and payments, and copies of bank statement, list of suppliers etc....

what a fookin pain!!!

my quarterly VAT bill will only be about £1100 why dont they hassle builders and plumbers instead!! LOL

luckily i keep a tight reign on the old paperwork (plenty of folders) label it all up and keep everything!!! (just in case)
at the end of the quarter, it gets bundled up in the loft and i can start again!

easy.

BB

Chris_

Setting up your business mainly depends on what type of business you intend to do. Perhaps as a "Sole Trader" would be best. If going into partnership with someone else, then a "Partnership" I personally think that if you intend to remain small, a "Ltd Company" is not the way to go as you will have to contend with alot more paperwork, PAYE & Corporation Tax as a couple not already mentioned.

Talk to an accountant about it and ask their opinion as to which way you should go, most will give you a half hour of thier time especially if they think they are going to get some business out of it.

Good Luck.

Goochie

Many thanks for the replies guys, I've been out and bought a couple of books now, however, they both seem to be pretty vauge and tell me everything I already know but not much else LOL!

Currently I dont fill a self-assesment which, is nice. If I register a company but dont actually trade with it (basically, keep it dormant) do you think the Inland Revenue will start wanting me to self assess?

I am thinking long term here really, I dont see much trading under my own company for maybe 2 years but thought if I registered my company name now it would look better when trading began as the company would have been established longer (or is this a minor thing to be thinking about?)

I know my boss registered our company in 1981 but we only began trading 3 years ago.

Having looked at various web sites etc. I think a Ltd company is what I would do rather than a sole trader.

Keep the advice coming!

Scooby96

Might that look a bit odd though - ok to clients it might give them an idea that the company is well established however if you were trying to gain credit then it might look odd to creditors that you didnt file any accounts for 2,3 or 5 years??

Going back to my previous post I was merely suggesting you fully exploit any 'loophole' that allows you to offset profit against expenses to reduce your tax liability. Its amazing how much you can palm off as 'petty cash'


[Edited by Scooby96 - 11/13/2003 9:19:59 AM]

Diesel

You have to file an annual companies house return even if your company hasnt turned over a bean. No big shakes but they fine you if you forget (no points though...) .

Goochie

i believe you can also offset a percentage of IT equipment against tax after 2 or 3 years ?

andrewdelvard

You must tell the inland rev within 3 months of setting up your own company. If you don't, it's a £100 fine.

Coopz

Talk to your local Business link start up adviser, they'll be able to give you all the info and advice you will need.

dr_ming

Until April 5 2004, you can depreciate 100% of the value of computer and technology equipment (the classification is quite vague) in the first year. About the only generous thing Gordon Brown has ever done for us. He may extend this into 2005, but I doubt it!

Edited to add: I think this only applies for limited companies. For a sole trader/partnership, I think the standard rules with regard to depreciation (as a capital item) apply. I could be wrong though.

[Edited by dr_ming - 11/13/2003 12:34:46 PM]

Richard Work

I'm thinking along the same lines - I'm registering as self employed/starting a business.

Take a look at the Business Link website - they have a really good guide that you can order (for free) from them about starting your own business. I ordered one last week and it came the other day.

Cheers

Richard

kend

Sole trader / partnership = unlimited liability. So if it all goes t*ts up then your creditors can send in bailiffs, sell your house/car etc.
Limited company, lots more paperwork, more complicated, but as te name suggested liability is limited to the assets belonging to the company. Also you need to register 2 directors, and a company secretary. If the books are messed up / lightly cooked / seasonally adjusted and you get caught, the secretary is personally liable, not your accountant.
3rd option is partnership limited by guarantee, only a fairly recent thing, falls somewhere in between the two.

kend

clicky

[Edited by kend - 11/13/2003 2:13:44 PM]

[Edited by kend - 11/13/2003 2:14:42 PM]