Freelancer payroll option

Comms69

brownbabygirl wrote: »

I will not be using an umbrella company, just working freelance via my own limited company. I have worked with freelancers and I know we def paid into their private bank accounts. I am just trying to work out how they calculated and paid tax etc.

So what salary are you getting paid by your limited company?


Do you claim expenses for example. What about pension? Insurances? etc etc.

Comms69

pelirocco wrote: »

In theory the money belongs to the limited company , but they are entitled to pay themselves every last penny thats there ( as long as its profits )

Absolutely, not questioning that. But it's important to clarify all this.


It could be better to pay yourself the minimum and then pay dividents.

brownbabygirl

Comms69 wrote: »

So what salary are you getting paid by your limited company?


Do you claim expenses for example. What about pension? Insurances? etc etc.

At the moment I am working PAYE but want to move over to freelance in the next couple of months for personal reasons.

Comms69

brownbabygirl wrote: »

At the moment I am working PAYE but want to move over to freelance in the next couple of months for personal reasons.

But if you start a LTD company, you would be an employee of that company....


Could you not just go self employed?

brownbabygirl

Comms69 wrote: »

But if you start a LTD company, you would be an employee of that company....


Could you not just go self employed?

I dont think so. Because I will be moving out of the EU but the agency I am working through are UK-based. In order for this to work I have to set up a limited company. Does that make sense?

Comms69

brownbabygirl wrote: »

I dont think so. Because I will be moving out of the EU but the agency I am working through are UK-based. In order for this to work I have to set up a limited company. Does that make sense?

Sort of. The reality is that you and the LTD are separate entities.


So if you are physically outside the EU, then there would be tax implications both in the UK and in the country you are going to be living.

brownbabygirl

I am guessing an accountant could do for me all that I am looking for?

Brynsam

brownbabygirl wrote: »

I am guessing an accountant could do for me all that I am looking for?

Yes - at a cost.

Do set up a separate bank account for your company - there are all sorts of issues if you use your own personal account and start muddling up the funds. See http://www.brighton-accountants.com/blog/company-bank-account/ for some reasons why it's a good idea.