Setting up a Limited company as single person, help?

nickc25

Hi
I am currently self employed but I have been trying to find out for nearly two weeks about taxes and even the tax office are not helpful, I am sure I would get fined if I did it wrong!

I am thinking of setting up a Limited company on my own. I would be sole director and would employ myself and pay a wage whenever I got money into the company. I would not be employing anyone else, I work from home.

I am trying to find out about tax and National Insurance. I have got the information about setting up and how to do it, it costs £37 in total. But with taxes they said I would start to pay taxes whenever the wage I pay myself goes over a certain amount, same with NI. I have no clue if I would earn £5000 per year or £20,000 per year at the moment as it is a new area for me, I have been self employed for years in the travel industry but now I have setup a villa rentals website where I charge villa owners a yearly fee to advertise and I am also going into web designing.

I would not be needing stock or anything and any money the company earnt I would pay myself. I was first worried If I legally had to pay myself a minimum wage but that is not the case.

I just want to know about taxes, would I be double taxed? IE does the company get taxed as well as me? If so then it is better being self employed? Last year as a travel agent I earnt less than £5000 which Is why I want to do this, I started doing it In feb and have already done a decent amount in sales. I just do not know about the tax, I understand I would have to pay taxes as an employee as I would be employed by the company, but just trying to see if the company itself would get taxed. The main reason for wanting to be a limited company is a liability issue and also it is more credible if people are dealing with a limited company rather than just some person.

Anyone has an idea?

Thanks