Contracting through Composite Company (first timer)

[Nixon Williams]

There is nothing wrong or risky with paying dividends each month, provided you do so from profits.

Any good accountant (no plug intended!) will be able to sort all this for you with very little input from yourself, afterall that is what you are paying them for!

Alan

[shippwreck]

Hey Guys,

Right, i am about to sign up with SJD as after speaking to them i feel much happier with them... plus they don't have a tie in at all and work out cheaper even though they charge for setting up the company!

So hopefully by the end of today i'll have my own limited company! I'm also going to sign up with PCG as that also seems like a sensible option.

I'd like to say thanks to all you guys for the advice you've given me... i probably would have come to a much less informed decision without you and i have also mentioned this place to some friends who also are thinking about this route... I'll be around more i reckon, probably asking some other newb questions, but for the moment i feel like i know just enough to be in control (possibly rather a false sense of control) but hopefully that will change as i progress and no doubt my knowledge will increase... but for the moment i feel like this:

LOL, cheers guys

[winx]

Hi all,

I also would like to thank most of the people posting here..

I guess I'll be moving on with SJD as it seems the most reasonable option!
Although my current accountant suggests moving with an EBT scheme I find it way too risky.

I've only been contracting for 6 months in the UK but I think my own ltd will give me more benefits in the future an ofcourse the peace of mind,

Cheers!

[malvolio]

Although my current accountant suggests moving with an EBT scheme I find it way too risky.

OK. so who is this clown? If he is recommending to a new and inexperienced client that they should use a scheme that has been outlawed in the UK , he should not be practising.

[winx]

He was recommended to me..

What's interesting is that he says that the scheme he is suggesting has the same risks (but not all the benefits!) than running my own ltd and possibly using my partner (who has no income) to receive a salary as a secretary or dividents and then accumulate the rest of the money within the company to use the taper relief in a couple of years.

Anyway, SJD have been very helpfull when speaking with them and I've already made up my mind..

[shippwreck]

Ok, i have one last question before i actually pay the money to get it all setup... company secretary???

Now i know what the role is and all that, but just wanted to check there were no adverse implications of this being my wife... as she actually has a very good job at the moment. I have asked her to check here employer is ok with it but i wanted to check there were no other implications. She wouldn't collect a salary at all and SJD said that she wouldn't have any shares...

[Pondlife]

Wife/GF is perfectly acceptable as Co Sec. Doesn't have to take a salary or divs either.

[shippwreck]

Cool, thanks