Going from PAYE to Ltd. Co.

mr_forward

i have read with interest a few threads relating to this topic. i am particularly interested in anything you champion money savers have to share about companies who supplyLtd. Co. services.

I have just bought an off the shelf limited company from 1st Contact. All things are going well so far and my first invoice went through today. I have increased my take home pay by £30 per week and 1st contact have taken about the same in fees for getting me this extra money, so I win they win.

I am happy that my work is IR35 compliant and do not want to start paying someone else to look after my books (1st contact do this for their fee). I wondered if anyone has any tips to increase tax efficiency when working as a Ltd Co? Or if anyone has any general advice about dealing with these Ltd Co. service suppliers??

Kind regards,

Dan

WHA

Their fee is £30 per week - that's £1,440 for say a 45 week working year.

There are loads of specialist accountants who will do everything for you if you have your own limited company - average fee £75 per month (£900 p.a.), but some good ones as low as £50-£60 per month.

Just get an accountant to do it for you, and save even more money.

Cook_County

We expect more thoughts on composite companies from our esteemed colleagues at Treasury - maybe as early as later this month. If you can, I'd suggest invoicing before Budget day (Wednesday March 21st).

mr_forward

thanks Guys,

I'm weary of Accountants, Lawyers and Solicitors as I don't have a great deal of experience with them and I find a lot of legal and reglatory jargon daunting.

I would like to have a look at exactly what my £30 a week to 1st contact covers and if paying another accountant £17 a week would get me an equal or better service. Is it simply a case of getting what you pay for? Would a different accountant process my payments and invoices on a weekly basis? What if my accountant gets sick/ run over by a bus?? Is £30 a small price to pay for peace of mind?



I will be waiting to see if Gordon and the Treasury crush my little company just as it takes it's first tiny steps into this world.

Kind regards,


Dan

mutley74

I am with Brookson (Brookson.co.uk) for past 2 years as an employee of a composite company. Now due to the recent tax changes I will be working as a director of my own company.

They offer a very good all round service including many benefits and insurance schemes included within the weekly fee of around £26/week. They even pay for an accountant to do my self-assessment form.
If you’re interested in joining send me a PM (as we can share any renewal offer)

mutley74

I am with Brookson (Brookson.co.uk) for past 2 years as an employee of a composite company. Now due to the recent tax changes I will be working as a director of my own company.

They offer a very good all round service including many benefits and insurance schemes included within the weekly fee of around £26/week. They even pay for an accountant to do my self-assessment form.
If you’re interested in joining send me a PM (as we can share any renewal offer)

RayWolfe

mr_forward wrote:

I will be waiting to see if Gordon and the Treasury crush my little company just as it takes it's first tiny steps into this world.
Dan

Well if you're little company is only in existence to avoid tax that the rest of us will have to pay extra to subsidise, I hope he does.
If, on the other hand you have set up some enterprise to make goods or supply a service that has a chance of blooming into a worthwhile company employing people and paying tax, then I hope he doesn't.

Hugh_Jampton_2

Golden rule no 1treat your company as a business not a tax avoidance tool.

mr_forward

i see becoming the Director of my own limited company as the first step in a long journey to becoming a consultant. People will come to me for solutions to their problems and I will invoice them for my services. It's not just about money-saving. It's about independence and tax efficiency.

thanx for the link to Brooksons! They provide the same service as I'm currently on for £26 a week. Must be because they're in Cheshire and 1st Contact are in London.

mutley74

mr_forward wrote:

i see becoming the Director of my own limited company as the first step in a long journey to becoming a consultant. People will come to me for solutions to their problems and I will invoice them for my services. It's not just about money-saving. It's about independence and tax efficiency.

thanx for the link to Brooksons! They provide the same service as I'm currently on for £26 a week. Must be because they're in Cheshire and 1st Contact are in London.

if you do apply for Brookson membership, let me know as usually they have some member introduction offers which we can split.

oldnick

RayWolfe wrote:

Well if you're little company is only in existence to avoid tax that the rest of us will have to pay extra to subsidise, I hope he does.
If, on the other hand you have set up some enterprise to make goods or supply a service that has a chance of blooming into a worthwhile company employing people and paying tax, then I hope he doesn't.

Not so long ago a high court Judge said it was the duty of every person to minimise their tax bill.

Tax avoidance therefore can be seen as good. Tax evasion on the other hand is not.

Just because you choose to work in a PAYE environment, don't carp at those that choose not to.

We are already one of the higest taxed countries in the world. Do you think that we get value?

If you look at the millions of pounds wasted for example in the NHS purely because of political dogma, you may not feel that the government is spending your taxes wisely.

To anyone that can find a way of reducing the amount taken by the Robber Baron, Gordon Brown, all I can say is Well Done. Let us all into the secrets.