Limited company is formed. What next??

[bash]

Hi Guys.

I have had some good advice on setting up a limited company. I am currently with an Umbrella and want to go Limited.

I signed up for a limited company on the ukplc website and received documentation. I am however awaiting a company number from Companies House.

I would like to know what the next steps are? I have a vague idea but would like some advice on what exactly are the next steps please?

This is my understanding so far: (please feel free to correct me)

1. Form a limited company (awaiting company number).
2. Send relevant limited company details to my recruitment agency.
3. Contact bank and open limited company bank account.
4. Not earning above the VAT threshold so no need to register for VAT yet.
5. Open PAYE scheme (not sure what this means or how to do it??).
6. How often do i calculate and pay TAX/NI and do i send a cheque to HMRC
(not sure about this???).
7. How do i pay myself??
8. What is difference between salary and dividends??
9. How do i bill the recruitment agency???
(do i send timesheet and expenses for the month in an excel template??)

This is my understanding gathered from this forum so far.

Any additional advice would be much appreciated.

Thank you.

[r0bly0ns]

Get yourself an accountant if you are unsure.

Worked wonders for us, handles all the PAYE and wage slips. Sends us details everymonth of how much to pay ourselves and how much to send to the tax man.

I can reccomend my accountant if you are interested.....

[BA to the Stars]

May still be worth registering for VAT under the Flat Rate Scheme, especially if you are going to get close to the threshold.

Bank may take a few days / weeks to open your account.

Good luck with it, best advise is to see an accountant and keep your records up to date (should take no more than an hour per week & is easier than a shoebox full of receipts and scraps of paper at the end of the year)

[Cooperinliverp00l]

Get yourself an accountant if you are unsure.

Worked wonders for us, handles all the PAYE and wage slips. Sends us details everymonth of how much to pay ourselves and how much to send to the tax man.

I can reccomend my accountant if you are interested.....

Sounds like your Accountant is doing a fare bit for you which will only mean a fair price come invoice day.

BASH- Speak to an accountant who will give you advice on how to pay yourself and what to pay yourself e.t.c. Things to do a.s.a.p is to get your LTD details over to agency and get your Company Bank account set up. Without the account you won't get any money coming your way. Look on this forum as there are many recommendations for bank accounts. Me personally i used my bank (who personal account is with "Barclays") they opened account within 3 days and has been hooked up to my online profile so i don't need to log in as different poeple.

Good Luck

[BA to the Stars]

For your PAYE & VAT type questions, have a search around the HMRC website (not the easiest to navigate but what do you expect from them)!

http://www.hmrc.gov.uk/

[Old Greg]

There are good free downloads (including a 1st time contractor guide) on SJD accountants website. Read them twice.

[r0bly0ns]

Sounds like your Accountant is doing a fare bit for you which will only mean a fair price come invoice day.

50 pence + VAT per person per month for PAYE calculations and wage slips
However that price may be because we pay him more to do the other stuff for us


It's one of the accountants that get's reccomended on here quite a lot, does a very competitive monthly package for contractors.

[Sockpuppet]

1. Form a limited company (awaiting company number).
2. Send relevant limited company details to my recruitment agency.
3. Contact bank and open limited company bank account.
4. Not earning above the VAT threshold so no need to register for VAT yet.
5. Open PAYE scheme (not sure what this means or how to do it??).
6. How often do i calculate and pay TAX/NI and do i send a cheque to HMRC
(not sure about this???).
7. How do i pay myself??
8. What is difference between salary and dividends??
9. How do i bill the recruitment agency???
(do i send timesheet and expenses for the month in an excel template??)

1. You've done that.
2. Yep
3. You need the incorp certificate for this
4. You might want to anyway and get on the FRS to earn yourself an extra 3%
5. Contact HMRC. There is a link on the home page. PAYE For New Employers. All done over the phone
6. Monthly or Quarterly if you payments (PAYE/NIC) are below £1500 a month.
7. Cheque, bank transfer, cash....upto you really. As long as its recorded somewhere as a payment to you.
8. Salary = what emploees get. You will be an employee of your Ltd Co. Dividend = what the shareholders get. The directors pay a dividend to the shareholders (owners) of the company. Dividend can only be paid from profit. Dividends are taxed less.
9. Just send them an invoice. Word has a few template examples to choose from. Make sure it has coy name, reg address, coy number on it though.

[bash]

Hi.

These responses have almost answered all i need to know. I think i may get an accountant to assist me. I will also have to get on to my bank about an account.

Very much appreciate the informative responses.

By the way, is there any information on (FRS-flat rate scheme)?? Not sure exactly what this is!!

Thanks again guys.

Bash

[Sockpuppet]

Basically the FRS is:

You charge at 17.5%.

So 1000 + VAT = £1175

You pay 12% back (depending on business classification) so

£1175 * 0.13 = £152.75

THe difference between the £175 and £152 you keep. Under normal scheme you pay back all of the £175 but can reclaim vat on purchases.

General advice is FRS if your expenses are low.