Newbie - Limited Company

[Ashwin2007]

I have started a limited company and offering IT services. At present I am the sole shareholder and director.

Assuming I am within IR35,

(1) Should I operate PAYE?

(2) Am I liable to pay NI for company as well as NI on payaments to the director? Does that mean that I end up paying twice as much NI if had chosen to operate as a sole trader?

(3) Is there any tax calculator web link available for limited company tax calculations?

[weemster]

For what its worth !!

My advice would be firstly don't assume you are within IR35 and secondly find a good accountant.

[Sockpuppet]

Search you lazy bastard.

[Sockpuppet]

My advice would be firstly don't assume you are within IR35 and secondly find a good accountant.

I like my phrase better.

[MrsGoof]

Sorry to spoil the party but I'm in a good mood since chelski winning in extra time = £230 for me

(1) Should I operate PAYE?

YES

(2) Am I liable to pay NI for company as well as NI on payments to the director? Does that mean that I end up paying twice as much NI if had chosen to operate as a sole trader?

YES

(3) Is there any tax calculator web link available for limited company tax calculations?

Ask you accountant or read you employers pack, It comes with a calculator

[Ashwin2007]

It looks very strange to me. So does that mean that having limited company and operating within IR35 means paying 11% additional tax (employers NI), besides spending on managing company.. ..

It appears to me that being inside IR35 and operating as Limited company is a bad option.. Any thoughts?

[Buffoon]

[malvolio]

It looks very strange to me. So does that mean that having limited company and operating within IR35 means paying 11% additional tax (employers NI), besides spending on managing company.. ..

It appears to me that being inside IR35 and operating as Limited company is a bad option.. Any thoughts?

I think you need to do some reading. First timer guide on here, the PCG one at www.pcg.org.uk, there's another one on the SJD website, there's a sticky in Accounting that explains why LtdCo is the cheapest way regardless... But if you're using an umbrella, you are paying full tax anyway so IR35 makes no difference.

Incidentally, your other thread seems to indicate you aren't inside IR35 anyway, so basically you need to go back to the drawing board and try again.