Currently with Umbrella but want to go Ltd

[designationlocutus]

Following on radgid's query, would it be cost effective to set up a Ltd before the financial year end? I'm looking to do so around mid-March.

[r0bly0ns]

We set up our Ltd on the 12th March 2 years ago.

The only 'overhead' is that at the following financial year end (april 2007), we got two letters with Corp Tax details, one for 12th - 31st 2006 of march and one for 1st April 2006 - 31st March 2007.

When our accounts were finalised and submitted, we only got one bill for the total amount though.

[Nixon Williams]

Following on radgid's query, would it be cost effective to set up a Ltd before the financial year end? I'm looking to do so around mid-March.

It does not really matter when you start the company. The corporation tax is due 9 months + 1 day after the period end. So assuming you formed a company today and started trading on Monday (11th February), the first period end would be 28/02/09 - the corporation tax would normally then be due 9 months + 1 day after this, ie 01/12/09.

Note that in the first year, two company tax returns would be due, the tax on the first would be due in the above example on 11/11/09 and the remainder on 01/12/09 - your accountant should automatically sort this out for you.

Alan