retired_eaglepdub

Don't you also end up paying more national insurance and tax as the sole employee of a limited company rather than being self-employed?

retired_kevh16

I can't wait until I do my tax module and can start dishing out advice in threads like this :cool:

Don't think you'd need to get auditors in as a limited company until you've reached a certain size. Can't remember what this is off the top of my head but its reasonably sizeable. Still have to file an annual return to companies house though.

retired_sajnesh

I am a limited company.

I found myself an accountant (go with a recommendation, or interview them). A decent one will set the company up for you, administer to the books and sort out your salary and tax arrangements, and will probably cost close to a grand a year.

The arrangement I have is that I pay myself a salary of 6k per year(which keeps my NI payments going), and then pay myself dividends, which are basically tax free up to around 38k a year.

I cream off 20% of my turnover into a pot marked "corporation tax" and never expect to see it again.

Thems are the basics. You can obviously do a lot of other clever things if you want to, but your accountant will sort them for you.

So the simple first bit of advice is find a good accountant, and talk to them about your circumstances and so on. They'll obviously do this for free in an attempt to win your business. Don't let your Dad do it.

retired_eoconnor

Dividends are tax free in the UK! They're not in Ireland and when taking the fact that they're not corporation tax deductible means that no-one running a company in Ireland does that.