Robbo
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Registered: 6th Aug 02
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quote:
Originally posted by BarnshaW
LTD has limited liability meaning you could only really lose what you put in
PLC is a private company and if it goes tits up you could end up losing your house etc to clear debts.
less paperwork is involved in setting up a PLC then an LTD.
best post ever
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by AndyKent
Could do that yes, except I have a charity willing to pay me over a grand for work I've done but for some reason say they can only pay to a registered (limited) company else they'll have to pay it through a member of my family who works for them but will take off 40% tax 
Im sorry, but what the fuck kind of charity is that? 
Any company (inc a charity) can pay any other sort of company. Personally Id be questioning them why this is the case, as I cant see any reason why they would do such a thing.
The ONLY thing I can see to benefit them is a VAT registered company, but both sole traders and Ltd companies can be VAT registered.
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by Robbo
quote:
Originally posted by BarnshaW
LTD has limited liability meaning you could only really lose what you put in
PLC is a private company and if it goes tits up you could end up losing your house etc to clear debts.
less paperwork is involved in setting up a PLC then an LTD.
best post ever
For stupidity I hope you mean?
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Matt L
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Registered: 17th Apr 06
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would be very little income and expenditure going on. Basically it would be deliberately breaking even.
Out of interest, how much would you/your company charge for a limited companies accounts?
also given that last sentence dont bother with the limited company seen as you'll just end up paying to get accounts done and everyting when you wont need to.
I need to give the hell up tonight soooo not with it
[Edited on 08-10-2009 by Matt L]
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by Cosmo
quote:
Originally posted by AndyKent
Could do that yes, except I have a charity willing to pay me over a grand for work I've done but for some reason say they can only pay to a registered (limited) company else they'll have to pay it through a member of my family who works for them but will take off 40% tax
Im sorry, but what the fuck kind of charity is that?
Any company (inc a charity) can pay any other sort of company. Personally Id be questioning them why this is the case, as I cant see any reason why they would do such a thing.
The ONLY thing I can see to benefit them is a VAT registered company, but both sole traders and Ltd companies can be VAT registered.
yep was gonna say, sounds like dodgy charity shite to me (dealt with plenty of them - religious ones mainly - in my time as an accountant)
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Robbo
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Registered: 6th Aug 02
Location: London
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quote:
Originally posted by Cosmo
quote:
Originally posted by Robbo
quote:
Originally posted by BarnshaW
LTD has limited liability meaning you could only really lose what you put in
PLC is a private company and if it goes tits up you could end up losing your house etc to clear debts.
less paperwork is involved in setting up a PLC then an LTD.
best post ever
For stupidity I hope you mean?
aye! first point is spot on, 2nd could not be more worng
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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We've had a few try with us tbh, thinking we are retards. They are the worst kind of company IMO.
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Matt L
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Registered: 17th Apr 06
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quote:
Originally posted by Cosmo
quote:
Originally posted by Robbo
quote:
Originally posted by BarnshaW
LTD has limited liability meaning you could only really lose what you put in
PLC is a private company and if it goes tits up you could end up losing your house etc to clear debts.
less paperwork is involved in setting up a PLC then an LTD.
best post ever
For stupidity I hope you mean?
seconded
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by Robbo
quote:
Originally posted by Cosmo
quote:
Originally posted by Robbo
quote:
Originally posted by BarnshaW
LTD has limited liability meaning you could only really lose what you put in
PLC is a private company and if it goes tits up you could end up losing your house etc to clear debts.
less paperwork is involved in setting up a PLC then an LTD.
best post ever
For stupidity I hope you mean?
aye! first point is spot on, 2nd could not be more worng
Thank god, or I was going to forward this post to Mr Vodafone
Fucking most retarded post ever
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koolkorsa
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Registered: 15th Jun 03
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Basic principles are as follows (there are some specific exemptions for low earnings i haven't mentioned):
Option 1) Sole trader with a full time job as well = You will pay NI Contributions at 8% of your profit (Profit being sales less eligible expenses) plus income tax at 20% unless you're earning over 40k ish.
So basically you'll take home about 72% of any profits you earn through this trade.
Option 2) Limited company. The company is a separate legal entity to you. You have two options of how to get the profits out of the company.
A) Salary. You pay yourself a salary. This will mean you pay the same personal NI and income tax as under option 1. In addition to this the company must make employee NI contributions of about 11% if i remember correctly. Then if you have anything left over in the company after you have paid your salary, employer ni contributions, expenses etc. is taxed again by corporation tax at 21%. You will then be able to extract this post tax profit through dividends.
Option b) Alternatively you could pay yourself no or very low salary then pay dividends. Dividends are paid out of the profit of the company after corporation tax. When you receive dividends you pay 10% tax on them and there are no national insurance contributions.
Of course most people with a limited company pay themselves a salary and then dividends as well. What the best option is depends on your personal circumstances and how much you are earning.
I'm sure there are some calculators you can play around with on the internet to work out which will suit you best. Or alternatively go and see an accountant.
Based on what you have described I think sole trader status would be better for you. I'm not quite sure why you are so keen on setting up a 'company'.
[Edited on 08-10-2009 by koolkorsa]
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Robbo
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Registered: 6th Aug 02
Location: London
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koolkorsa, good post. iirc cosmno does it all thru dividends. now i dunno how it works these days but there are some rules around using dividends to pay yourself that you need to be careful not to fall short of.
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AndyKent
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Registered: 3rd Sep 05
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Sounds strange to me too. Trouble is that its been a member of my family been talking to the accounts people rather than me so possibly lost in translation. Bit complicated setup as their partly run by a council as well.
In any case, thats a separate issue, wish I hadn't mentioned it.
End of the day I get all the differences between liability and accounts etc, its the differences in tax benefits I can't work out. Looking like I'm going to have to see an accountant face-to-face maybe. Might be easier for me to understand that way
edit - scratch that, koolkorsa might have sorted me 
[Edited on 08-10-2009 by AndyKent]
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by Robbo
koolkorsa, good post. iirc cosmno does it all thru dividends. now i dunno how it works these days but there are some rules around using dividends to pay yourself that you need to be careful not to fall short of.
Yes, plenty of rules, mainly around making sure the company paying dividends does not make a profit 
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BarnshaW
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Registered: 25th Oct 06
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quote:
Originally posted by Cosmo
quote:
Originally posted by Robbo
quote:
Originally posted by Cosmo
quote:
Originally posted by Robbo
quote:
Originally posted by BarnshaW
LTD has limited liability meaning you could only really lose what you put in
PLC is a private company and if it goes tits up you could end up losing your house etc to clear debts.
less paperwork is involved in setting up a PLC then an LTD.
best post ever
For stupidity I hope you mean?
aye! first point is spot on, 2nd could not be more worng
Thank god, or I was going to forward this post to Mr Vodafone
Fucking most retarded post ever
i have no idea what i am on about, suprised i got even one thing right.
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Tommy L
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Registered: 21st Aug 06
Location: Northampton Drives: Audi wagon
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Just be a soletrader. A lot less paper work and if it doesn't take off you won't have wasted a load of money setting up a Ltd company.
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BarnshaW
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Registered: 25th Oct 06
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thats what i said tomtom but apparently its wrong
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Matt L
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Registered: 17th Apr 06
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well you only got the plc bit wrong so 50% there
plc = public limited = on the stock market = alot more paper work that a limited company (that last bit im not 100% on but i would guess is right )
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Tommy L
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Registered: 21st Aug 06
Location: Northampton Drives: Audi wagon
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No you didn't.
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by BarnshaW
thats what i said tomtom but apparently its wrong
No, your PLC bit was wrong.
Wayyyyyyy wrong
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BarnshaW
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Registered: 25th Oct 06
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ok so i got it the wrong way round. i know what i meant
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Tommy L
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Registered: 21st Aug 06
Location: Northampton Drives: Audi wagon
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a PLC is a type of Limited company
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by BarnshaW
ok so i got it the wrong way round. i know what i meant
Not even the wrong way round mate, just totally wrong.
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BarnshaW
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Registered: 25th Oct 06
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its a public limited company
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koolkorsa
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Registered: 15th Jun 03
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quote:
Originally posted by Robbo
quote:
Originally posted by Cosmo
quote:
Originally posted by AndyKent
Could do that yes, except I have a charity willing to pay me over a grand for work I've done but for some reason say they can only pay to a registered (limited) company else they'll have to pay it through a member of my family who works for them but will take off 40% tax
Im sorry, but what the fuck kind of charity is that?
Any company (inc a charity) can pay any other sort of company. Personally Id be questioning them why this is the case, as I cant see any reason why they would do such a thing.
The ONLY thing I can see to benefit them is a VAT registered company, but both sole traders and Ltd companies can be VAT registered.
yep was gonna say, sounds like dodgy charity shite to me (dealt with plenty of them - religious ones mainly - in my time as an accountant)
Maybe may they have internal purchasing rules where they only buy from limited companies to try and protect them from small time fraud, paying joe bloggs x amount when in fact he's one of the staff members mates. They may perceive a limited company as lower risk for this type of fraud.
However paying it through a family member who works for them and taking off 40% tax sounds a bit too close to money laundering to me.
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Matt L
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Registered: 17th Apr 06
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a public limited company is different to a limited company
ltd = private limited = shares are only owned by the directors/owners of the buisinss
plc = public limited = shares are on the stock market and anyone can buy them
2 totally different things.
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