Setting up company and composites having read the postss

[christhedon]

Hello,

I'm new and have spent the last few hours reading through the posts on this forum. What that has done has scared me from using a composite solution such as Giant Powerhouse and from setting up my own company as the costs seem higher than a composite solution (E.g. accountant, IR35 contract check, IR35 insurance, professional, personal, public liability insurance).

From what I can gather is that composite companies may be under heavy scrutany from the HRMC and therefore could cause them to go under and hence the members would lose they're next weeks income/months income? OR is it the members themselves could be under investigation in which case the insurance would kick in and they would be in the same position as if they were LTD with insurance in the first place?

I understand that the composites will also charge a fee that if you were LTD you would obviously not be paying. Although as mentioned above you could end up paying for those things individually?

Please could someone clear the above up in simple layman terms in terms of the risks, rewards and effort required for each choice?

Thanks in advance,

Chris

[mcquiggd]

First piece of advice, change your username as muslims will be offended, and cut your head off, leading to calls for a 'period of consultation' from John Reid.

[Troll]

Hello,

I'm new and have spent the last few hours reading through the posts on this forum. What that has done has scared me from using a composite solution such as Giant Powerhouse and from setting up my own company as the costs seem higher than a composite solution (E.g. accountant, IR35 contract check, IR35 insurance, professional, personal, public liability insurance).

From what I can gather is that composite companies may be under heavy scrutany from the HRMC and therefore could cause them to go under and hence the members would lose they're next weeks income/months income? OR is it the members themselves could be under investigation in which case the insurance would kick in and they would be in the same position as if they were LTD with insurance in the first place?

I understand that the composites will also charge a fee that if you were LTD you would obviously not be paying. Although as mentioned above you could end up paying for those things individually?

Please could someone clear the above up in simple layman terms in terms of the risks, rewards and effort required for each choice?

Thanks in advance,

Chris

Do you have a lissp?

[malvolio]

Oh jeez... Read this thread - http://forums.contractoruk.com/thread7487.html

The basic point is that no matter what legal construction you use - umbrella, comp, own co, smelly little man from Isle of Man - they all use the same taxation laws and have the same rights and responsibilities. You don't pay your own company a fee, everyone else you do. Therefore, all things being equal, which is cheapest?

And if you haven't worked that out from the research you've done...

[Troll]

Why is everyone still so scared of IR35?, I went through an investigation that lasted 2+ years and it was obvious at the end that the Revenue (spit) were just trying it on.

Get some insurance against it and stop worrying about it

[Mordac]

Hello,

I'm new and have spent the last few hours reading through the posts on this forum. What that has done has scared me from using a composite solution such as Giant Powerhouse and from setting up my own company as the costs seem higher than a composite solution (E.g. accountant, IR35 contract check, IR35 insurance, professional, personal, public liability insurance).

From what I can gather is that composite companies may be under heavy scrutany from the HRMC and therefore could cause them to go under and hence the members would lose they're next weeks income/months income? OR is it the members themselves could be under investigation in which case the insurance would kick in and they would be in the same position as if they were LTD with insurance in the first place?

I understand that the composites will also charge a fee that if you were LTD you would obviously not be paying. Although as mentioned above you could end up paying for those things individually?

Please could someone clear the above up in simple layman terms in terms of the risks, rewards and effort required for each choice?

Thanks in advance,

Chris

Ask yourself this. If Giant can provide all this and make a profit, wouldn't it be great if you were able to source these things yourself at roughly the same or slightly lower cost?

Clue - check out the PCG (www.pcg.org.uk) /end clue

And speaking of risk, any company which sees the money before you do consitutes a risk - that something will happen to that company while they are still holding on to money which is owed to you. The fewer companies in that supply chain, the better. Is it sinking in yet?

[Jack Sparrows]

If you owe banks money, use a cover ltd company like pro corporate.

If your new use an umbrella company

If your in good credit and experienced use your own ltd co.

[christhedon]

Ok

So I thought about the costs of using LTD and am laying them out in yearly figures:

1) Accoutant £1200
2) Accountant costs for dispenses £??? e.g. doing your reciepts etc.
3) Public and professional liability and personal indemnity insurance £300
4) IR35 contract review £100
5) IR35 contract insurance for expenses £200
6) Setting company up with Companies House £100?
7) Time spent doing the above £???

Total cost is about £1900.

Giant is 35*52= £1820.

Are my figures wrong / way off?

Thanks,

Chris

[Pondlife]

Ok

So I thought about the costs of using LTD and am laying them out in yearly figures:

1) Accoutant £1200
2) Accountant costs for dispenses £??? e.g. doing your reciepts etc.
3) Public and professional liability and personal indemnity insurance £300
4) IR35 contract review £100
5) IR35 contract insurance for expenses £200
6) Setting company up with Companies House £100?
7) Time spent doing the above £???

Total cost is about £1900.

Giant is 35*52= £1820.

Are my figures wrong / way off?

Thanks,

Chris

1) Accountant approx £1000
Who will set up YourCo for you, do your PAYE, annual accounts etc
2) PCG mempbership approx £200 which included IR35 insurance etc
3) Discounted Prof indem ins thru PCG £201 which included EL, Pub Liab
4) Contract review £100 is about right
5) PCG Legal/tax advice line - Priceless if HMRC knock on your door.
6) Time spent doing the above is about the time it took me to write this.

HTH

[christhedon]

So you are talking about 1500. I also just found out that some composites are charging you for employers tax. I assume you'd have to pay that as well if having a LTD?