Advice on bcoming a limited company

[MB2]

The only other advantage I can see to being an ltd rather than sole trader is that you have more flexibility if you have a good year one year with ltd but ST you simply pay tax on everything that year so for steady work it is less of advantage.

Broadly the tax take has to be about the same or everyone would go one way or the other.

[Chippie]

Hi guys,

Thanks for all the replies, I really appreciate it.

Firstly, my apologies for posting this in the wrong section.

I did consider the sole-trader route, but I’ve been informed that sole-traders are no longer classed as self-employed when working on site under the direction of someone. Apparently, the only way around this would be limited, and tbh I would like the idea of forming my own brand.

I viewed some of the forms and paperwork via the gov.uk site, and it doesn’t seem the friendliest. I think I would prefer the easier option of hiring an accountant. I’d be worried about making a stupid error and receiving a huge fine from HMRC, and sometimes I’m just too tired after a 10-12hr day on-site. It’s odd, as I’ve recently started seeing a girl that does the accounts for a construction company, but it’s just too cheeky to even go there so I haven’t shared my idea with her, yet.

I’ve seen some companies online that offer accounting services for around £65 a month I believe it was. Are these any good?

[northernladuk]

I’ve seen some companies online that offer accounting services for around £65 a month I believe it was. Are these any good?

How should we know? That's like asking you if the carpenter that just quotes me 50 quid is any good.

[Chippie]

How should we know? That's like asking you if the carpenter that just quotes me 50 quid is any good.

Its obvious any carpenter charging £50 is going to be naff.

Its a reasonable question, as others here may have experience or be familiar with such firms.

[mudskipper]

I did consider the sole-trader route, but I’ve been informed that sole-traders are no longer classed as self-employed when working on site under the direction of someone. Apparently, the only way around this would be limited, and tbh I would like the idea of forming my own brand.

There is a similar rule for Ltd Companies - IR35. If your engagement does not look like one of 'self employment', then you need to pay all the income from the contract PAYE (including Employer's NI). So if you are under supervision, direction and control you may be worse off than sole trader. (IR35 is a bit more complicated than that - read up on the right, or download IPSE's guide to IR35 .)

[Chippie]

There is a similar rule for Ltd Companies - IR35. If your engagement does not look like one of 'self employment', then you need to pay all the income from the contract PAYE (including Employer's NI). So if you are under supervision, direction and control you may be worse off than sole trader. (IR35 is a bit more complicated than that - read up on the right, or download IPSE's guide to IR35 .)

Thanks for the link and the information. I will have a look at this tonight.