Limited Company - Stop work or a break

[The Coal Man]

Hi all

Im about to switch from my umbrella company to set up a limited company, but because I might have breaks in between contracts (for one reason or another ie. fancy a break or there is a lull in the market) I was wondering how this would affect my company as with an umbrella company I can just stop paying the weekly / monthly fees when I am not working.

Do I still having to pay my accountant each month to do any accounts etc?

Is it viable to keep my limited company operating even if I had a month off or two off?

Any help would be much appreciated.
Thanks.

[Pondlife]

Yes, Your Co stays open for the periods of downtime. Basically the costs you pay your accountant are the costs for the year/12 so you will have to pay for the month(s) you're not earning.

You need ideally to make sure that there's enough cash in the business account to pay your smallish salary and fees for the time your not working. Hence not trying to claim everything as a dividend straight away.

HTH

[Ardesco]

Hi all

Im about to switch from my umbrella company to set up a limited company, but because I might have breaks in between contracts (for one reason or another ie. fancy a break or there is a lull in the market) I was wondering how this would affect my company as with an umbrella company I can just stop paying the weekly / monthly fees when I am not working.

Do I still having to pay my accountant each month to do any accounts etc?

Is it viable to keep my limited company operating even if I had a month off or two off?

Any help would be much appreciated.
Thanks.

Paying monthly fees?? What are you going on about?

If you run a LTD company you don't have to pay your company any fees... You will generally pay your accountant annually and you only need you accounts done once a year (you can leave it for 18 months for your first accounting run though)

If you have a lull you can just let your LTD sit there, you should try to get enough money into the company so that it can still pay you if you have alull though.

[The Coal Man]

[QUOTE=Ardesco]Paying monthly fees?? What are you going on about?
I was referring to the comparison between an umbrella company setup and a limited company whereby under an umbrella when I come to the end of a contract and take some time out, i do not pay anymore fees to my umbrella company.

Cheers for the advice guys, appreciated.

[tim123]

Many accountants do charge their fees monthly. They find that their clients prefer this. (It also serves to lock you in, but this usually isn't an issue).

tim

[philip@wellwoodhoyle]

Many accountants reduce their monthly fee for months in which the company is dormant. Just look for one that does.