Ltd Company - VAT and PAYE

**RichardCranium** · 11 January 2010, 21:26

What do you intend to do with this LtdCo?

Assuming you are going to be a contractor, you will most likely be paying yourself a salary and PAYE will occur. If you are going to be bringing in lots of money (over about £68k), you will go over the VAT threshold and have to be VAT registered. Below £68k and it'll depend on whether your LtdCo is going to be buying loads of stuff that has VAT on it that it will want to reclaim.

If you are going contracting, the answer is probably Yes and Yes.

SJD will give you proper advice if you ask them.

**sweetandsour** · 11 January 2010, 21:32

Originally posted by dav77 View Post

Do I need to become VAT and PAYE registered?

I don't know.

You (or your company) will need to register for VAT if the value of taxable supplies in any year exceed the threshold.

You (or your company) will need to register for PAYE if you or it are going to pay anybody some wages.

If you are going to be an IT contractor I would read the first timer guides on here, the SJD website and the PCG websites pronto if I were you.

If you are just here because you are thinking of setting up a Limited Company for fun then it is as you were.

**dav77** · 11 January 2010, 21:36

Originally posted by RichardCranium View Post

What do you intend to do with this LtdCo?

Assuming you are going to be a contractor, you will most likely be paying yourself a salary and PAYE will occur. If you are going to be bringing in lots of money (over about £68k), you will go over the VAT threshold and have to be VAT registered. Below £68k and it'll depend on whether your LtdCo is going to be buying loads of stuff that has VAT on it that it will want to reclaim.

If you are going contracting, the answer is probably Yes and Yes.

SJD will give you proper advice if you ask them.

Hi there,

Thanks for the quick reply! Yes I am contracting, being under an umbrella for the past year. It will be over 68k so I will have to be VAT registered then, and I'll be paying just my salary so I will need PAYE. So, it is Yes and Yes! I wonder if I can register for them myself for free on HMRC?

Nice one, thanks..

David

**dav77** · 11 January 2010, 21:38

Originally posted by sweetandsour View Post

I don't know.

You (or your company) will need to register for VAT if the value of taxable supplies in any year exceed the threshold.

You (or your company) will need to register for PAYE if you or it are going to pay anybody some wages.

If you are going to be an IT contractor I would read the first timer guides on here, the SJD website and the PCG websites pronto if I were you.

If you are just here because you are thinking of setting up a Limited Company for fun then it is as you were.

Hi there,

Thanks also for the quick reply. I wont be buying that many supplies, perhaps just a phone or computer at some point, and a few office supplies. But, as previous poster mentioned, I will be over 68k so I guess I need to be VAT registered anyway, even if I'm not purchasing over the VAT threshold?

Thanks, I'll take a look at those sites..

David

**explorer** · 11 January 2010, 22:10

Originally posted by dav77 View Post

Hi there,

But, as previous poster mentioned, I will be over 68k so I guess I need to be VAT registered anyway, even if I'm not purchasing over the VAT threshold?

David

You will need to register for VAT, only After yourco sales actually cross the threshold, although you can voluntarily choose to do so before that. Regarding PAYE, you need to register as an employer, if you are paying yourself above the NI threshold (I think it's currently £475 a month). And yes, registeration is free for both of them, and online options are abailable.

**inniAccounts** · 11 January 2010, 23:11

Hi David, I'm from a company called inniAccounts.

We offer a full accountancy service for contractors which includes formation and VAT & PAYE registration. Plus once you're up and running our online service allows you to create invoices, track expenses, create payslips, etc. You can find out more at <removed>.

If you're still deciding on your options and would like further advice from one of our accountants I'd be more than happy to put you in touch.

James

<admin note>No posting links please. See the forum terms and conditions.</admin note>

**blacjac** · 12 January 2010, 01:23

A decent accountant will register your company for both of them at no extra charge, as well as forming your company (again for no extra charge).

**lje** · 12 January 2010, 07:17

You can register for both for free. I was surprised how easy it is. You can do it all online.

Ltd Company - VAT and PAYE