Ltd Company Set up, and Nearly Starting

[dyven]

Hello fellow Contractors, Posters, Forumers (Forumites - What is the collective term!!)

Thanks for your assistance in my previous post. I am nearly there now, Ltd Company is set up. Contract is signed and checked IR35 status , Bank Account Nearly open !! Just wanted some final reassurances on my final checklist,

Completed:
• Outside IR35 Contract signed with Agency
• Set up Limited Company – Done Via Formation Company
• Set up Bank Account – Done - Refeered via Formation Company – Accepted by Bank.

Still to do:
• Awaiting UTR from HMRC Via companies house (which should be automatic I think) so I can register with:
• HMRC for Corporation TAX, Flat Rate VAT, and PAYE.
• Sign up with PCG including Professional Indemnity Insurance (Or will I be better off getting this from a separate broker!!)
• Sign up for an online cloud based accounting package. Looking at FreeAgent at the moment (Is this worth doing!!! or will I be best saving my pennies and knocking together some spreadsheets.


Am I missing anything on this list? What about now that I am a Director, when do I need to sign up for self assessment or will HMRC send something out for this automatically now that Companies House will have informed then.

Finally I am looking at the whole low salary, high dividend issue. Obviously I have my own personal expenses to cover like mortgages etc so equire some amount of regular monies into my personal account to meet these bills. Now in this tax year I will have received 3 wage slips from my current employer before I start contracting and thereafter it will just be the contracting income.

Question: I am presuming from my 3 wage slips some of my personal allowance has been used up as it is spread equally over the 12 months. Going forward can I use up all of my remaining personal allowance in a month or so along side the remainder of my NI Allowance so that I can still class this year as a Ni Credit Year, which then means a simple payroll going forward i.e. no more salaries, just dividends?

Thanks in advance

[Sockpuppet]

• Sign up with PCG including Professional Indemnity Insurance (Or will I be better off getting this from a separate broker!!)

There be dragons. I'm with the PCG, for a first timer they're probably a better bet than TLC35 just as your NIC liability will be low as you've been contracting for such a short period.

• Sign up for an online cloud based accounting package. Looking at FreeAgent at the moment (Is this worth doing!!! or will I be best saving my pennies and knocking together some spreadsheets.

Personally I swear by Sage Instant.

[cojak]

I can see that you've decided not to bother with an accountant.

Brave man.

Unless you already know everything, buy the latest version of http://www.amazon.co.uk/Finance-Beer.../dp/1905211031

That will tell you what you need to know re Corp tax (don't spend it, it's not yours. etc)

And I use and like FreeAgent, unless you've got macros and lookups in your Excel spreadsheet that will help with reconcilliation of invoices to income and the like.

But it sounds like you're on the right track.

[Clare@InTouch]

You're slightly mixed up with your UTR and Companies House. HMRC will issue your UTR (Unique Tax Reference) once you tell them you need one. To do that, complete the SA1 form which you'll find on their website here: http://www.hmrc.gov.uk/sa/forms/sa1.pdf

All you need to register for PAYE is your NI number. You can register here: https://online.hmrc.gov.uk/shortform.../what-next.htm

You can also register for VAT without a UTR, you just need your NI number. Once the VAT registration comes through, which will take a couple of weeks if you do it online, you can then register for flat rate VAT. Look into leaving yourself on the standard scheme for a quarter if you have small equipment to buy that you want to reclaim the VAT on. You can register on the Government Gateway to do the VAT registration online: HM Revenue & Customs: Register for HMRC taxes and sign up for online services and the FRS application can then be emailed through to them: VAT 600FRS - Application to join the Flat Rate Scheme

The code that Companies House send you is just to enable online filing of Companies House forms (change of directors, accounts, annual return etc).

Personally, I'd suggest you get an accountant for the first year, just to ensure you don't miss anything. It will put you in a better position to go it alone thereafter.

[dyven]

I suppose it helps that i have clsoe family members who are accountants!!! so some dinner invites will come in handy!

I can see that you've decided not to bother with an accountant.

Brave man.

Unless you already know everything, buy the latest version of http://www.amazon.co.uk/Finance-Beer.../dp/1905211031

That will tell you what you need to know re Corp tax (don't spend it, it's not yours. etc)

And I use and like FreeAgent, unless you've got macros and lookups in your Excel spreadsheet that will help with reconcilliation of invoices to income and the like.

But it sounds like you're on the right track.

[dyven]

Thanks for this. So I can use my own NI number to register my ltd company as an employer?

You're slightly mixed up with your UTR and Companies House. HMRC will issue your UTR (Unique Tax Reference) once you tell them you need one. To do that, complete the SA1 form which you'll find on their website here: http://www.hmrc.gov.uk/sa/forms/sa1.pdf

All you need to register for PAYE is your NI number. You can register here: https://online.hmrc.gov.uk/shortform.../what-next.htm

You can also register for VAT without a UTR, you just need your NI number. Once the VAT registration comes through, which will take a couple of weeks if you do it online, you can then register for flat rate VAT. Look into leaving yourself on the standard scheme for a quarter if you have small equipment to buy that you want to reclaim the VAT on. You can register on the Government Gateway to do the VAT registration online: HM Revenue & Customs: Register for HMRC taxes and sign up for online services and the FRS application can then be emailed through to them: VAT 600FRS - Application to join the Flat Rate Scheme

The code that Companies House send you is just to enable online filing of Companies House forms (change of directors, accounts, annual return etc).

Personally, I'd suggest you get an accountant for the first year, just to ensure you don't miss anything. It will put you in a better position to go it alone thereafter.

[Clare@InTouch]

Thanks for this. So I can use my own NI number to register my ltd company as an employer?

Yes - you should have all the details necessary to complete the online form already, you won't need your UTR. The form does ask for your company UTR, but it's not a required field. The company UTR is your CT reference, and you'll find that on the top of the CT41G that HMRC send out (new company CT details, grey & white form that asks about when you're starting to trade, names of directors etc).

[northernladuk]

I suppose it helps that i have clsoe family members who are accountants!!! so some dinner invites will come in handy!

You are running a business now. Don't involve your family and just do it properly. They don't know your business to the level they should and can't give you the impartial advice you need. Maybe in future years this could be a way for you but not at start up. You need solid support or it is going to cost you.

[Alan @ BroomeAffinity]

I suppose it helps that i have clsoe family members who are accountants!!! so some dinner invites will come in handy!

The amounts of times I, and I bet Claire and all the other accountants on here have sorted out "my brother-in-law told me this - he's an accountant"messes would surprise you. Get an accountant - it'll cost you two day's rate probably and a good one won't "cost" you anything.

[TheFaQQer]

I suppose it helps that i have clsoe family members who are accountants!!! so some dinner invites will come in handy!

You know how p1ssed off when you get asked everything technical because you work in IT?

Imagine how your family will feel when you save £85 a month by asking them constant questions to which they don't have a clue. Now imagine staking your livelihood on this advice.

A good accountant should easily save you more than you spend with them.