How long to set up a Ltd?

[claudius]

I'm 2 weeks into a renewal and just agreed a new rate. Not the best way of doing things I know but I'm quite pleased with the increase. I've been sent the new contract to sign by the agency and I'm a bit uneasy carrying on using an umbrella which I've done for the last year, what with the benefit of the flat rate VAT scheme and the 5% allowances for expenses even though I'm sure the contract is caught by IR35, regular hours at the same location.

So if I made a decision to set up a limited company how long would it take before I would be in a position to submit my first invoice?

[rawly]

I found the setting up of the Ltd company was the easier and fast bit! <1 Day. It's the bank account, vat registration, and agency changing over the details in their system that has caused me a delay of up to 6 weeks.

But, I don't know if that is normal or not!

My advise - start the process TODAY! Pick an accountant from here - they are well advertised - and start the ball rolling ASAP.

[YNWA]

Normally:

Company 24/48 hours
VAT 4-6 weeks
Bank 5 working days

However due to the millions no switching to Ltd, its more like:

Company 24/48 hours
VAT 12-14 weeks
Bank 7/10 working days

Bit of a nightmare

Waiting for VAT registration should not stop you from being able to start invoicing though.

[rawly]

Normally:

Company 24/48 hours
VAT 4-6 weeks
Bank 5 working days

However due to the millions no switching to Ltd, its more like:

Company 24/48 hours
VAT 12-14 weeks
Bank 7/10 working days

Bit of a nightmare

Waiting for VAT registration should stop you from being able to start invoicing though.

Also the Bank Account / VAT are sequential, as you need a bank number to ensure your application isn't sent back (which does happen).

My timeline was:

Company 1 Day - then Bank Account 28 Days (a massive backlog I'm affraid) then VAT finally sent off last Thursday, so 8 Days more and counting...... However, you can issue invoices while waiting for your VAT.

[FiveTimes]

Normally:

Company 24/48 hours
VAT 4-6 weeks
Bank 5 working days

However due to the millions no switching to Ltd, its more like:

Company 24/48 hours
VAT 12-14 weeks
Bank 7/10 working days

Bit of a nightmare

Waiting for VAT registration should stop you from being able to start invoicing though.

I am currently waiting for a VAT number but I am able to invoice. The agency said they will hold the VAT pending registration and once I have told them the VAT number then it will be back dated.

The big holding point at the moment is the business bank account, as you can't register for VAT without it, you can't join the FRS without registering for VAT, you can't get paid in your own current account!!!
Choose a bank account first, asthis will take 10/14 days.

[OBS]

It is possible to invoice without having your VAT number. You need to invoice a proforma invoice and charge VAT, state on your invoice 'awaiting VAT registration number'. When your VAT number comes through resend the proforma invoices as actual invoices quoting your VAT number.

[YNWA]

my mistake, original post should have read....should NOT stop you from invoicing....

I have modified the original post now.

[claudius]

It is possible to invoice without having your VAT number. You need to invoice a proforma invoice and charge VAT, state on your invoice 'awaiting VAT registration number'. When your VAT number comes through resend the proforma invoices as actual invoices quoting your VAT number.

Just to clarify, would they pay the proforma invoice inculding the VAT straight away, and the invoice with the VAT number sent on later is just for their records?

[aj1977]

Also the Bank Account / VAT are sequential, as you need a bank number to ensure your application isn't sent back (which does happen).

My timeline was:

Company 1 Day - then Bank Account 28 Days (a massive backlog I'm affraid) then VAT finally sent off last Thursday, so 8 Days more and counting...... However, you can issue invoices while waiting for your VAT.

any suggestions reg the business bank account which gives a decent amount of interest and may be free/or not so much charge banking?

[OBS]

Yes proforma will be paid in full and yes the invoice is for their records