Starting up, need some advice

[azcn2503]

Good morning all,

Here's my situation:

Used to be employed doing IT support for about 8 years. Decided to change jobs at the start of the year and was employed as a web developer for almost 6 months. Received an interesting offer from a Norwegian company, but due to technical issues and the speed that they wanted to get me in, suggested I start working for them on contract, set up my own limited company etc. The work will be non exclusive and I can look for other contracts while working for them, though they generally expect priority coverage between 8am and 2pm.

Currently, I have only one bank account; my own personal bank account. I have not yet set up any business account, and have not set up my limited company yet.

I am now at the point where I need to start spending some money to get the job done (I need a bit of a beastly computer for QA and testing, big compile jobs, virtual machines, etc.) but I don't want to take the hit on paying taxes when I don't really need to - it should be a company expense.

Can anybody give me some advice on the next steps? Something like: set up limited company, set up bank account, spend money. Or are there some workarounds? Can I buy now and reclaim as expenses on my company later? Please excuse my naivety and ignorance when it comes to running my own business, I've been thrown in to it, but hope I don't look back

Best regards,
Aaron

[manubbo]

Can anybody give me some advice on the next steps? Something like: set up limited company, set up bank account, spend money. Or are there some workarounds? Can I buy now and reclaim as expenses on my company later? Please excuse my naivety and ignorance when it comes to running my own business, I've been thrown in to it, but hope I don't look back

Best regards,
Aaron

First timers section on the right side should have everything. Also - if you are setting up a LTD company, go through an accountant. Many of them are present on this site and I guess they're equally good - I went for SJD and they've been helpful (they also have a nice guide that you can download for free - even if you're not a customer - if you register on their website).

Re expenses - I opened my company, bought the laptop I'm working on for my gig before having a VAT no and a Bank account, but you need to have an invoice in the name of your company. You can pay it with your money, and if it's a tangible business expense you can reimburse your expenses from your company money - expenses are Corp Tax free.

[malvolio]

Perhaps reading the guides would be a good start....? There's one on contracting over there ---->, the definitive one to Freelancing in general is at www.pcg.org.uk, most of hte big accuotnants have finacial guides on ther websites. This is not a game, learn the ropes before you get into problems, not after and you have no idea just how much you don't know.

One golden rule: you and YourCo are two different legal persons: don't ever mix them up at any point, including bank accounts.

But to answer your main question, set up costs can be claimed retrospectively from the YourCo provided the claim is for things you have to buy to operate the business. Buy it all personally, keep all the receipts then expense them when the company has some money in the bank.

[azcn2503]

Thanks. I guess I have all the information I need

[malvolio]

Thanks. I guess I have all the information I need

Nope, and you never will. We're all still learning and the parameters tend to change on a regular basis. All you've got is the starter pack.

[azcn2503]

Consider me a regular here from now on, then

Thanks.

[Project Monkey]

Best advice for new/potential contractors is: NEVER ask for advice on here.