I am in a permenant job at the moment.
My plans are to set up my limited company in advance of finding my first contract.
I also want to get the Flat Rate VAT Schema registration sorted before contracting.
Being a newbie, I have some questions:
Q1:I am going to need an accountant. However do I need to appoint an accountant as soon as my company formation is complete? or can it wait until I start my contract?
I'm planning to do the company formation without an accountant. I'm hoping its not rocket science.
Q2:My wife is currently unemployed and looking after our newborn. She is planning to find a job around June 2012. In the meantime I was planning on making my wife a shareholder in my company or should I make her the secretary and pay her a small salary? Or can I do BOTH?
Q3: Would there be any implications if my wife started working for someone else in 2012 and continued to receive dividends from my company? would she have to do a self assessment each year?
Q4:My mother is also not working. Is it possible that I can make her a shareholder too? Is having more than 2 shareholders in the company better when splitting dividends.
Q5:Is it absolutely neccessary to get PI insurance when contracting? Do agents normally ask for this?
Q6: Is their any advantage in forming the company in joint names? (myself and my wife)
Q7o I need to get employers insurance?
Q8uring the months where I am in between contracts, do I still need to pay myself a salary?
Q9:Is the salary fixed? or can I change it during the tax year?
Q10:Is there any advantage of using a company debit card for expenses rather than out of your own pocket and reclaiming it from your ltd company?
Q11: My current employer is interested in keeping me on a contract basis when my permenant employment ends. This immediately screams out IR35 to me!
Should I be worried? Or can I structure the contract in such a way that it lies outside of IR35. Apart from the obvious substitution clause and mutuality of obligation
I was thinking: - have a fixed length contract for a specific project.
- work from home 3 days a week and 2 days in the office.
- have a short notice period such as 24 hours (both sides)
Q12: I understand that if registering for flat rate VAT you cannot reclaim VAT on expenses. However I believe you can still claim back the VAT on purchases of over £2000. Can someone
confirm my understanding is correct?
My plans are to set up my limited company in advance of finding my first contract.
I also want to get the Flat Rate VAT Schema registration sorted before contracting.
Being a newbie, I have some questions:
Q1:I am going to need an accountant. However do I need to appoint an accountant as soon as my company formation is complete? or can it wait until I start my contract?
I'm planning to do the company formation without an accountant. I'm hoping its not rocket science.
Q2:My wife is currently unemployed and looking after our newborn. She is planning to find a job around June 2012. In the meantime I was planning on making my wife a shareholder in my company or should I make her the secretary and pay her a small salary? Or can I do BOTH?
Q3: Would there be any implications if my wife started working for someone else in 2012 and continued to receive dividends from my company? would she have to do a self assessment each year?
Q4:My mother is also not working. Is it possible that I can make her a shareholder too? Is having more than 2 shareholders in the company better when splitting dividends.
Q5:Is it absolutely neccessary to get PI insurance when contracting? Do agents normally ask for this?
Q6: Is their any advantage in forming the company in joint names? (myself and my wife)
Q7o I need to get employers insurance?
Q8uring the months where I am in between contracts, do I still need to pay myself a salary?
Q9:Is the salary fixed? or can I change it during the tax year?
Q10:Is there any advantage of using a company debit card for expenses rather than out of your own pocket and reclaiming it from your ltd company?
Q11: My current employer is interested in keeping me on a contract basis when my permenant employment ends. This immediately screams out IR35 to me!
Should I be worried? Or can I structure the contract in such a way that it lies outside of IR35. Apart from the obvious substitution clause and mutuality of obligation
I was thinking: - have a fixed length contract for a specific project.
- work from home 3 days a week and 2 days in the office.
- have a short notice period such as 24 hours (both sides)
Q12: I understand that if registering for flat rate VAT you cannot reclaim VAT on expenses. However I believe you can still claim back the VAT on purchases of over £2000. Can someone
confirm my understanding is correct?
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