Setting up a limited company

Arghhhh help!

Basicallly I'm starting work at Yodel (please no negativity)
as a owner driver and ive been told i need to set up as a limited company. Ive tried doing this myself and paid the £12 but think i should have got someone to do it for me. It was asked for sharholders info, shares and prices etc. It got very confusing, im sure now that my application will be declined. Are there any owner drivers that have swt up a LTD company out there able to give me advice?

Thanks phil

Replies

  • tacpot12tacpot12 Forumite
    6.6K Posts
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    Hi Phil, I'm not an owner driver, but I have setup a couple of companies in the past for contracting through. What website did you use to setup the company?

    Setting up a company limited company is quite a significant activity, as you become responsible for the operation of the company; you will be responsible for filing accounts with Companies House, registering the Company with HMRC and paying its taxes, operating a payroll for its employee (you), and for winding the company up when you are done with it.

    You will need an accountant to prepare the year-end accounts, and will need to retain all invoices and receipts. Your accountant will normally be able to offer a payroll service that will meet the HMRC requirements. Budget on £1000 per year to pay the accountant for their services, but discuss fees up front.

    Your accountant will setup you a company but will charge a lot for the service. There isn't much to it. Decide on the face-value price of your shares; £1 is ok.
    Decide on the number of shares you want there to be available immediately. Basically any number from 1 upwards will do. I would suggest 20,000 as a nice round number. :-)
    Provide your name as the Director and as the one shareholder of one share. (The remaining 19,999 shares remain unissued).
    The most difficult bit is finding a company name that it isn't already taken.
    You might need to select a Accounting Period End date during the process. I'd recommend the end of June to give a long period of trading before needing to submit your year end accounts, and to align with the Self-Assessment calendar.

    Then open a bank account in the Company's name and you're about done. I would read up on the responsibilities of a director and what sort of actions need a board minute to be recorded.

    I doubt your application will fail, and your accountant will be able to sort out any errors that were made when the company was formed.

    You won't need to register for self-assessment if you take less than £5000 dividends every year. So I would recommend you aim to take £4,999 in dividends and pay the rest out of the company via payroll or as pension contributions.

    Good luck
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • ReadingTimReadingTim Forumite
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    This might help, even if it's only to confirm you should have got an 'off the shelf' company from an incorporation agent.
  • MakkusuMakkusu Forumite
    100 Posts
    Seventh Anniversary Combo Breaker
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    tacpot12 wrote: »
    Hi Phil, I'm not an owner driver, but I have setup a couple of companies in the past for contracting through. What website did you use to setup the company?

    Setting up a company limited company is quite a significant activity, as you become responsible for the operation of the company; you will be responsible for filing accounts with Companies House, registering the Company with HMRC and paying its taxes, operating a payroll for its employee (you), and for winding the company up when you are done with it.

    You will need an accountant to prepare the year-end accounts, and will need to retain all invoices and receipts. Your accountant will normally be able to offer a payroll service that will meet the HMRC requirements. Budget on £1000 per year to pay the accountant for their services, but discuss fees up front.

    Your accountant will setup you a company but will charge a lot for the service. There isn't much to it. Decide on the face-value price of your shares; £1 is ok.
    Decide on the number of shares you want there to be available immediately. Basically any number from 1 upwards will do. I would suggest 20,000 as a nice round number. :-)
    Provide your name as the Director and as the one shareholder of one share. (The remaining 19,999 shares remain unissued).
    The most difficult bit is finding a company name that it isn't already taken.
    You might need to select a Accounting Period End date during the process. I'd recommend the end of June to give a long period of trading before needing to submit your year end accounts, and to align with the Self-Assessment calendar.

    Then open a bank account in the Company's name and you're about done. I would read up on the responsibilities of a director and what sort of actions need a board minute to be recorded.

    I doubt your application will fail, and your accountant will be able to sort out any errors that were made when the company was formed.

    You won't need to register for self-assessment if you take less than £5000 dividends every year. So I would recommend you aim to take £4,999 in dividends and pay the rest out of the company via payroll or as pension contributions.

    Good luck

    Sorry but that's awful advice...

    My advice, get an accountant.
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