self assessment or private limited company

daverave7

Potbellypig wrote: »

Before getting an accountant, I was considering doing it myself too (Ltd company). Believe me, there are so many loopholes that a good accountant will know from knowledge and experience, that you just won't. You may think I'm not paying X amount a year for someone just to do my books, but if you get a good one, they'll save you many more pounds in the long run.

But I would get an accountant if I set up an Ltd company... all I'm doing is trying to do some research for myself first!

Cook_County

daverave7 wrote: »

But I would get an accountant if I set up an Ltd company... all I'm doing is trying to do some research for myself first!

Why do you believe this is not simply employment income subject to regular PAYE tax & NIC withholding?

daverave7

Cook_County wrote: »

Why do you believe this is not simply employment income subject to regular PAYE tax & NIC withholding?

It would be if I went down the self assessment route. Or I'm entitled to do it through a company... this is what I'm exploring.

Dazed_and_confused

Self Assessment is just a mechanism for HMRC to obtain details of your taxable income and collect any tax due. And National Insurance. And Student Loan. And High Income Child Benefit Charge.

It doesn't alter the need to have the proper systems in place in the first place, for example being registered as an employer if the relevant rules are hit.

daverave7

I mean self employment. I understand that any dividends are subject to tax but not NI?

Dazed_and_confused

Yes, depending on your total taxable income dividends are taxed at one or more of the following rates,

0%
7.5%
32.5%
38.1%

Unlike earnings and pension income the same rates apply in Scotland as to the rest of the UK as far as dividends are concerned.

MDMD

Cook_County wrote: »

Why do you believe this is not simply employment income subject to regular PAYE tax & NIC withholding?

This is an important point. You do need to explore what the impact to you will be of the April 2020 IR35 changes. If you don’t consider it you may have to change the way you operate anyway in 12 months

TheCyclingProgrammer

MDMD wrote: »

This is an important point. You do need to explore what the impact to you will be of the April 2020 IR35 changes. If you don’t consider it you may have to change the way you operate anyway in 12 months

OP would need to consider IR35 from the outset, as well as being aware of the potential changes in 2020.

daverave7

Thanks all. Some good advice here, in particular the IR35 changes - I was aware of the previous changes but not the proposed changes in 2020 which could heavily influnce my decision.