SetH
Member
Registered: 15th Jul 01
User status: Offline
|
I will be leaving permanent work to become an IT contractor later this year, not looking for any advice on the contracting side as currently working alongside some contractors who have been great with regards to tips etc.
Although most are working under umbrella companies, i would prefer to set up my own limited company and go from there.
Question is where to start? what pitfalls? etc?
Thanks.
|
Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
|
Can either buy a ready-made company form WHSmiths or somewhere and change the name or instruct a solicitors/accountants to set it up for you... one BIG pitfall u need to investigate is an Inland Revenue regulation called IR35...
|
ed
Member
Registered: 10th Sep 03
User status: Offline
|
Yaa, you can just buy a LTD. company in a box. Seems quite strange 
|
Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
|
It is Much cheaper than setting up a whole new one except you have to change alkl the particulars yourself which can be tricky
|
Mad Moe
Member
Registered: 14th Jun 01
Location: Northumberland
User status: Offline
|
Starting point is speak to your bank's corporate division and to local accountants to discuss what assitance they offer and what you want to achieve
Also here's some pointers that I noticed on the BBC website:
The main advantage is that the liabilities (debts) of the company are completely separated from its directors and owners. Many people starting out, or a little way down the line, decide to form a limited company. In practice they're both the owners and directors, although the two are distinguishable in law.
Key points to remember about limited companies:
They're separate legal entities of their own and must be registered at Companies House.
Each limited company must have at least one director and a company secretary (in practice you and another).
The directors' personal assets aren't vulnerable should the company fall into debt, but the directors have legal duties, such as filing statutory documents (see point 4).
Limited companies have to file annual returns (accounts) to both the Inland Revenue and Companies House.
Companies don't pay income tax, they pay corporation tax.
Everyone has the right to find out from Companies House who the directors are, and can look at the accounts.
Companies must display their full name on all premises from which they operate and on all stationery.
Here's the Link to the website, hope it helps
[Edited on 25-07-2007 by Mad Moe]
|
Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
|
Like I say, need to inverstogate IR35 before doign anything else... its basically a statue that says if you operate as though you are employed (as lots of contractors do and did) then they will override anything you have set up and treat you as an employee... rendering everything you have spent on the ltd company pointless... its a killer regulation and it badly hit IT and car building industries a few years back
|
ed
Member
Registered: 10th Sep 03
User status: Offline
|
And me 
|
Natalie
Member
Registered: 5th Nov 03
Location: Oxfordshire Drives: Vauxhall Tigra 1.8
User status: Offline
|
Get Shaw Gibbs LLP to set it up for you 
|
Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
|
quote:
Originally posted by Robbo
Like I say, need to inverstogate IR35 before doign anything else... its basically a statue that says if you operate as though you are employed (as lots of contractors do and did) then they will override anything you have set up and treat you as an employee... rendering everything you have spent on the ltd company pointless... its a killer regulation and it badly hit IT and car building industries a few years back
only for tax reason though?? So all the other reasons, i.e. the liabilities, etc. would still make it beneficial setting up a Limited company.
|
Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
|
Maybes... but not necy... u still have the admin of runnign one, simple liability ins maybe enough in many cases
|
SetH
Member
Registered: 15th Jul 01
User status: Offline
|
Have investigated the IR35 and got some great tips from one of the contractors on how to legitamately avoid it, should not be a problem.
plus the government is losing 1000`s of cases a year as its so vague. there are also several tax firms that can fight your corner usually with good sucess rates.
so the risk on that account is miniscle as far as im concerned, you just have to use your head i guess.
|
