setting up ltd for a month

[nwtester]

Ok, here is my situation, current gig ends next week, and I will be able to bill for March in April, and get paid on the 15th, lets say for arguments sake that the invoice total is £6k

I currently work via a umbrella who use PAYE to pay me, so I would lose a certain amount of the money to tax/NI and net say £3500 of it.

I want to know if I can setup a ltd, recieve the full 6k gross.... my question is, IF i paid myself the full 6000 in April as a salaray, at what point would I have to pay the income tax/NI on it ? If i have to pay it via the companies quarterly return, how much tax/NI roughly would they want, assume standard tax code for single person.

Lets assume that the 6000 would be my only income for tax year 2009-10,so technically I would not have to pay any tax on it.

[Gonzo]

Ok, here is my situation, current gig ends next week, and I will be able to bill for March in April, and get paid on the 15th, lets say for arguments sake that the invoice total is £6k

I currently work via a umbrella who use PAYE to pay me, so I would lose a certain amount of the money to tax/NI and net say £3500 of it.

I want to know if I can setup a ltd, recieve the full 6k gross.... my question is, IF i paid myself the full 6000 in April as a salaray, at what point would I have to pay the income tax/NI on it ? If i have to pay it via the companies quarterly return, how much tax/NI roughly would they want, assume standard tax code for single person.

Lets assume that the 6000 would be my only income for tax year 2009-10,so technically I would not have to pay any tax on it.

Why not pay it as a dividend and then you will pay corporation tax and personal tax in January 2011?

There are a lot of reasons why you don't really want to go down this route though.

[Alan @ BroomeAffinity]

I wouldn't bother tbh. Any benefit would potentially be swallowed up by fees for set-up and accountancy

[ASB]

Lets assume that the 6000 would be my only income for tax year 2009-10,so technically I would not have to pay any tax on it.

If that is actually the case then yes, pay up to the annual threshold.However what will happen is that you will be taxed on most of it (because your freepay for the month is only 1/12th of the annual amount) and you will be able to reclaim it at the end of year through your SAR.

The NI position will depend upon exactly what method you choose to pay the NI and whether you are a director or not. Again if it is your only income for the following tax year then you will ultimately get the NI back.

Obviously you need to factor in setup and accountancy costs, these will swallow up a fair bit of the savings.

Alos this is no different to the position with the umbrella anyway....