retired_srini_aug1

yeah its not a great deal

marynot

you might also be able to reclaim travel on your car.

If you voluntarily register for VAT then you can reclaim it on purchases for the 'business'

retired_recca

Depends what you do. I have next to no expendition (well, certainly not enough to risk the dangers of any real money) so the liability isn't really an issue.

If you're in a business that needs substantial investment or might have cash flow problems, go limited.

Oh, and lemme know if anyone knows a London-based accountant who can help with my tax return...

retired_recca

Expenditure, obviously.

retired_stevesgrl

firstly as a limited company you will most likely need to have auditors audit your books (that's the case in SA and large parts of our laws are based on English law). Auditors do not come cheap. But seeing as you are trying a tax evasion scheme let's go with a crappy set of auditors who probably won't cost you much.

Then every year you most likely have to send of a set of financial statements to your Registrar of Companies or whatever you call him over there.

Then there is the little matter (again based on SA law) of what is termed by the courts as piercing the corporate veil. That is, if it is deemed you are running your company in such a way that you and it are one and the same, then it is deemed you do not have the protection of limited liability. Of course this would also mean the tax man taxing you at the individual rate.

Again these are musings based on South African law but I wouldn't be surprised if they are the same as the laws in England.

retired_abess

Completely wrong. You need enough money to buy an off the shelf company, a couple of hundred quid or so, and that's it.

I was a limited company before, and I'm SE now, and I haven't really noticed any difference. Oh, being SE I don't have to file an annual return to Companies House, which saves a bob or two.

retired_abess

The company would be required to pay corporation tax on its profits, and Ceefax would have to pay PAYE tax on his earnings.

retired_sahin

but you don't pay corporation tax on the first £10k ?

retired_hvporter

A family friend employed his wife as his secretary, paying her a hideous amount a year, which enabled them to claim a fair bit of the profits in a roundabout way.

On a similar note, I am looking at setting myself up as an independent consultant along with my everyday job. How would I go about this with the taxman? I don't have much of a clue when it comes to tax and the like.

retired_abess

No idea tbh. I was limited a good while ago. But whatever, you will pay tax on money you take from the company as wages or wages in kind.

I got my company to sponsor me to go to Uni for a year. Earned close to 50k and paid £30 tax. Now that was pretty cool.