Ltd company to work for Arise

injaroc

Hi I've just started my own Ltd company so that I can do some work for Arise ( thread in the up your income section), now what I'm not sure on is -do I then declare self-employed and invoice my company for the work thus not actually being employed by my company or do I just put myself on the company payroll and pay myself as employed?

Hope I haven't confused anyone

Any ideas please?

ukbill69

You setup yourself as an employee of the company and get paid via PAYE and id suggest paying yourself a £5000/year tax free wages and then anything else can be taken as a dividend and you pay 20% tax on that. Id suggest getting an accountant sorted as it is a requirement when you own a ltd company to have a accountant. Expect to pay about £80 per hour. Sage instant accounts is a good way to start your accounts. Get a business bank account setup, I use barclays, dont expect any bank to lend to you for at least 6 months. There is lots of advise on this forum if you search for it.

injaroc

thanks for your reply. I have a business account already set up and I can do the basic book-keeping (will need an accountant as u say). If I set myself as an employee of the company will I be classed as employed or self-employed for things like my tax credits do you know?

Will have a long read of this part of the forum I think

ukbill69

You are employed by the company as a director, not self employed.

Ste_C

ukbill69 wrote: »

Id suggest getting an accountant sorted as it is a requirement when you own a ltd company to have a accountant.

It isn't a requirement and there is nothing stopping the OP doing his own accounts. There is no legal requirement for Ltd company accounts to be prepared by an accountant. The need for audits and such like only comes in when companies are turning over millions of pounds, way beyond this sort of thing.

However, given the OP's question indicates sketchy knowledge then I'd say for him personally it is essential he speaks to an accountant ASAP.

slipp_digby

closed wrote: »

IR35 probably applies too

a strong possibility. the whole set up seems geared to hiding you as an employee.

having done this before presumably they can confirm this to you