Limited Company or not - Anyone with an opinion please?

[GoldRapt]

Turf Accountants aren't Chartered

Trust you John

You contracted with your ladder climbing antics mate?

[Andrew]

I wa looking at a similar thing a few years back but the reverse.... us being already a limited company and having someone external doing some work for us. It was easier for me to have a straight forward invoice than go through PAYE. I was speaking to my accountant about general stuff at a later stage an mentioned this to him. My memory isn't the best but I am sure he told me that in theory it is illegal. He actual stated the court case name that took place several years ago which outlined an individual setting up as limited instead of becoming employed for tax reasons. I guess people still do this and I bet there are many on the highest tax rate subcontracting as Ltd to avoid the 50p in the £.

To be honest, I doubt you will see any benefit against the extra work and costs involved. Plenty of extra paperwork for you to get through or your accountant to pay.

[logobear]

You have the choice of being an employee, or a contractor.Why should you have to be a ltd co if you contract? I think you can remain self employed and invoice for work as a contractor and be responsible for your own tax and niThen you can still claim your miles!IMHO

[GoldRapt]

I wa looking at a similar thing a few years back but the reverse.... us being already a limited company and having someone external doing some work for us. It was easier for me to have a straight forward invoice than go through PAYE. I was speaking to my accountant about general stuff at a later stage an mentioned this to him. My memory isn't the best but I am sure he told me that in theory it is illegal. He actual stated the court case name that took place several years ago which outlined an individual setting up as limited instead of becoming employed for tax reasons. I guess people still do this and I bet there are many on the highest tax rate subcontracting as Ltd to avoid the 50p in the £.

To be honest, I doubt you will see any benefit against the extra work and costs involved. Plenty of extra paperwork for you to get through or your accountant to pay.

Good points.
I had a L.C once before when I was doing legal work on a long term contractual basis. Made a small fortune and went of on a v e r y l o n g holiday "down Under". Forgot to dissolve before I went so C.House were annoyed with my last submission which was late
I will have to check if I carry on paying my NI contributions or if I get a refund for paying twice.

I recall the business model you mention being being used though. Guy built up a supply business then dissolved, then reopened under a different name the next day same business,same address, different name.
But then I found this forum ))))) LoL

[GoldRapt]

You have the choice of being an employee, or a contractor.Why should you have to be a ltd co if you contract? I think you can remain self employed and invoice for work as a contractor and be responsible for your own tax and niThen you can still claim your miles!IMHO

You would think so wouldn't you. But that isn't the way third party contarcting works.
I will of course check with the contracting party, but this is not an option laid down in the contract, and having done a few in the past not one I have been given.
But to be fair neither is it one I have asked about.

[John G]

Found this - may be of some help:
http://www.itcontractjobs.co.uk/article ... uick-guide

[mgibbs]

My accounts bill doubled when I went Limited - lots more paperwork involved.

Mark

[GoldRapt]

My accounts bill doubled when I went Limited - lots more paperwork involved.

Mark

Great to hear from someone who is limited.
Mark, why did it double, are you asking your accountant to do your general bookkeeping as well as year end accounts?

[Reg]

Originally Posted by logobear
You have the choice of being an employee, or a contractor.Why should you have to be a ltd co if you contract? I think you can remain self employed and invoice for work as a contractor and be responsible for your own tax and niThen you can still claim your miles!IMHO

To work as a self employed contractor you cannot invoice to one company, you must invoice to at least 2 or 3 firms or people.

[GoldRapt]

To work as a self employed contractor you cannot invoice to one company, you must invoice to at least 2 or 3 firms or people.

Well that hasn't been my experience.