Ltd company’s are so easy to run, i’m not sure why everyone thinks they are so hard to run.
Work hours and invoice agency, put in bank pay yourself a wage or take as dividends, charge 45p mile for traveling to and from work up to 10,000 miles a year then 25p mile after that.
If you want register for flat rate VAT scheme so charge £20 per hundred invoiced and give VAT man £10 so every £100 you earn now becomes £110.00 to you. But maybe save that until your comfortable with running company. It’s pretty much the same as SE but you can pay yourself what wage you want and take dividends as and when cash is available. An accountant will give you 1/2 hr or so appointment to explain how it works and what you can claim etc.
With a good accountant you shouldn’t pay anymore than £300-£500 per year which is tax deduct-able anyway.
I’m working PAYE at the moment and kinda working for a couple of agencies and have told them I’ll work if they can give me shifts. I’m only doing a couple a week as I have other work. It’s amazing that some can’t find me two a week. Got a bit of grief couple weeks ago from one saying I couldn’t work for anyone but them so want to be a little more in control and know they’re talking crap anyway. I want to go Ltd but think right now I don’t really make enough but at same time as I don’t make much getting used to running my own Ltd might be simpler and easier to get used to. I know I could argue the same kind of thing for umbrella and right at thus moment leaning towards umbrella for ease and for quickness.
Also…looking at umbrellas…It says I’m an employee and them being employers…but I’m paying them a fee to work for them?..thought that was illegal!!
Poss use umbrella until you are full time, im only a few days a week but have another ltd company for a different thing i would guess the fee the umbrella company would charge would be same or more than ltd company over time.
If you work and pay tax ni i would think ltd would be better as you can just take dividends and only pay tax, corporation tax, when you set up ltd company your tax year starts then not in april so you would have the full 12 months to earn money which i guess would be when your full time. Also take 45p mile tax free from traveling, buy a sat nav etc etc.
I would suggest you google chartered accountants in your area and phone 2 get a rough price for what you want ltd company etc and if happy with price go see them and they will explain your best options which i would say is ltd company, no agency can say you have to work with them.
Just reading here regarding agencies and ltd companys,I have just passed my theory test and hope to have passed my practical by the end of Feb,I am going to try agency work to get some experience also I have been self employed for nearly 20 years now and would like to stay that way for now I am a sole trader but everyone in driving seems to be a ltd company ,is there a reason for this instead of sole trader ■■?
I seem to recal reading recently that the courts & HMRC have agreed driving a vehicle not belonging to you, and claiming to be self employed is illegal. HMRC have identified that the self employed status was being used as a tax evasion system, both by employment agencies and workers. Which the courts agreed with.
I can’t remember where I read it, but I seem to recal it was one of the news websites.
The prediction being that HMRC would allow a short period for people to get their houses in order, before starting prosecutions when the practice was identified. Although they did make clear they would expect the tax shortfall to be paid immediately.
It will be interesting to see how the agencies handle this…
SiAmon:
I seem to recal reading recently that the courts & HMRC have agreed driving a vehicle not belonging to you, and claiming to be self employed is illegal. HMRC have identified that the self employed status was being used as a tax evasion system, both by employment agencies and workers. Which the courts agreed with.
I can’t remember where I read it, but I seem to recal it was one of the news websites.
The prediction being that HMRC would allow a short period for people to get their houses in order, before starting prosecutions when the practice was identified. Although they did make clear they would expect the tax shortfall to be paid immediately.
It will be interesting to see how the agencies handle this…
They’ve been saying HMRC wanting to come down hard on the agency mob for ages, still hasn’t happened.
SiAmon:
I seem to recal reading recently that the courts & HMRC have agreed driving a vehicle not belonging to you, and claiming to be self employed is illegal.
I know its going away from the original point but where would this leave taxi drivers who use the firms cars?
SiAmon:
I seem to recal reading recently that the courts & HMRC have agreed driving a vehicle not belonging to you, and claiming to be self employed is illegal. HMRC have identified that the self employed status was being used as a tax evasion system, both by employment agencies and workers. Which the courts agreed with.
I can’t remember where I read it, but I seem to recal it was one of the news websites.
The prediction being that HMRC would allow a short period for people to get their houses in order, before starting prosecutions when the practice was identified. Although they did make clear they would expect the tax shortfall to be paid immediately.
It will be interesting to see how the agencies handle this…
They’ve been saying HMRC wanting to come down hard on the agency mob for ages, still hasn’t happened.
SiAmon:
I seem to recal reading recently that the courts & HMRC have agreed driving a vehicle not belonging to you, and claiming to be self employed is illegal. HMRC have identified that the self employed status was being used as a tax evasion system, both by employment agencies and workers. Which the courts agreed with.
I can’t remember where I read it, but I seem to recal it was one of the news websites.
The prediction being that HMRC would allow a short period for people to get their houses in order, before starting prosecutions when the practice was identified. Although they did make clear they would expect the tax shortfall to be paid immediately.
It will be interesting to see how the agencies handle this…
They’ve been saying HMRC wanting to come down hard on the agency mob for ages, still hasn’t happened.