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Setting up limited company after signing first contract
alexthepenguin
Posts: 32 Forumite
in Cutting tax
I am working full time and pay tax on PAYE basis.
To supplement my income recently I have started working on a project as a self employed contractor for an organisation (not related to my full time job). Having giving it some thoughts I have decided to set up a private limited company for my contract work as it would be beneficial for me from a tax perspective.
However I have already signed a letter of engagement using my own name with the organisation (though I will not be paid until later on this year). If I set up my company now, will I need to sign a new letter of engagement with them using my company name or will my current letter of engagement be fine as I can say I signed it in my capacity as the director of my soon-to-be-formed company? The organisation has made it clear that they would be happy for me to submit the invoice through my company so my question is really from a legal/tax perspective.
Thank you.
To supplement my income recently I have started working on a project as a self employed contractor for an organisation (not related to my full time job). Having giving it some thoughts I have decided to set up a private limited company for my contract work as it would be beneficial for me from a tax perspective.
However I have already signed a letter of engagement using my own name with the organisation (though I will not be paid until later on this year). If I set up my company now, will I need to sign a new letter of engagement with them using my company name or will my current letter of engagement be fine as I can say I signed it in my capacity as the director of my soon-to-be-formed company? The organisation has made it clear that they would be happy for me to submit the invoice through my company so my question is really from a legal/tax perspective.
Thank you.
0
Comments
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I would sign a new engagement.0
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the client will require the contract to be with the company not the sole trader who is not the one doing the work, since the work is now being done by a company0
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