Limited company or self employed.

BrianM1975

ceeforcat wrote: »

Accountants, accountants! Are you going to only work 17.5 hours per week? £5035 per annum is £96 per week - this is equivalent to 17.5 hours at the minimum wage. Unlikely!

If you work more than that for that salary you will fall foul of minimum wage regulations and will be breaking the law.

Company directors can exempt themselves from the national minimum wage legislation.

MrBeans

BrianM1975 wrote: »

Company directors can exempt themselves from the national minimum wage legislation.

Indeed.

You can take a salary up to £5435 in 2008/9 and pay no income tax.

It is much easier than many people imagine to set up your own limited company - look at the Companies House website for how to do it. You could pay an accountant to do your first year accounts and tax returns and then do it yourself thereafter when you see how to do it. If you are well organised it isn't too difficult.

johnllew

MrBeans wrote: »

You can take a salary up to £5435 in 2008/9 and pay no income tax.

This year's personal allowance is £6035, not £5435.

MrBeans

johnllew wrote: »

This year's personal allowance is £6035, not £5435.

You are quite right. It was £5435 until September but was changed to £6035 for 08/09 as part of the 10p tax rate compensation measures.

Cricri

In my case, seeing that I'm only looking to contract for a single company in the next months, I'd probably get hit hard by IR35 if I was trying the no-tax trick!

nearsea

i also consider setting up my own e-commerce company.But have no idea about what to sell

terriermeggie

Many thanks to all the input on this thread...

I've been working as a locum pharmacist (hospital-based) for the past 9 months...

Personally, I am set up as a business (limited-company) from the advice of my accountant. I would recommend it to any current or future locum pharmacists....

Thanks again.

DFL_1

Unless additional services are provided then £495 is the highest I have ever seen for company formation - we charge £100 plus VAT and I have seen some do it cheaper than that

james1935

My wife and I are directors of our own Limited company and do not employ any other staff. In the eyes of the revenue I would consider myself an employee of the company rather than be classed as self-employed is this the correct assumption?? would appreciate any input.

crazygeordiegirl

james1935 wrote: »

My wife and I are directors of our own Limited company and do not employ any other staff. In the eyes of the revenue I would consider myself an employee of the company rather than be classed as self-employed is this the correct assumption?? would appreciate any input.

Yes, and you should be paid as employees of the company.

http://www.startinbusiness.co.uk/flowchart/5flowchart_directors.htm Half way down, hope that helps.

You are still however sort of classed as self employed and are responsible for getting your accounts/tax return prepared etc.