Parasol Payslip question

[TinTin]

Bit-on

Sorry mate, you seem to be lacking very basic business skills. If you set up a Ltd. Co. as your employer vehicle, you will STILL have to pay the NIC employer's contribution (although your tax 'burden' will be less, as others have said here before).

[biton]

ltd = 80%+.

How long it should take me to set up everything with my own ltd using SJD?
Is it safe to say a couple of days?

[kirk]

How long it should take me to set up everything with my own ltd using SJD?
Is it safe to say a couple of days?

The Ltd. yes, this can be done easily within 24hrs; co. bank account may take a little longer. You'll also need to change your contract to reflect this....

[oraclesmith]

....just remember that setting up a limited company is actually starting your own business and taking responsibility for it as a seperate trading entity.

It's not just a vehicle for passing your income through and paying less tax. If you think it is, then you will have a bad time at the hands of HMRC.

[biton]

....just remember that setting up a limited company is actually starting your own business and taking responsibility for it as a seperate trading entity.

It's not just a vehicle for passing your income through and paying less tax. If you think it is, then you will have a bad time at the hands of HMRC.

I understand that but isn't paying less tax the reason why people choose the ltd option? Anything specific I should watch out for?

[oraclesmith]

You've got a whole bunch of legal responsibilities, which you will either need to get done yourself or pay someone else to do. Eg. filing your company annual accounts, your annual return to Companies House, your dividend vouchers, book-keeping, filing (receipts, company meetings and resolutions, evidential paperwork, contracts etc).

As a Director, you are responsible for the health of your business and you can get in trouble if it is not run properly.

Sure, most contractors only have one to avoid tax, but in order to do this successfully you've got to be convincingly trading like a real small business. At least read a book or something about business before you make the decision.

In my opinion.

[biton]

You've got a whole bunch of legal responsibilities, which you will either need to get done yourself or pay someone else to do. Eg. filing your company annual accounts, your annual return to Companies House, your dividend vouchers, book-keeping, filing (receipts, company meetings and resolutions, evidential paperwork, contracts etc).

As a Director, you are responsible for the health of your business and you can get in trouble if it is not run properly.

Sure, most contractors only have one to avoid tax, but in order to do this successfully you've got to be convincingly trading like a real small business. At least read a book or something about business before you make the decision.

In my opinion.

Thanks for the advice.
To be honest, I'm not sure i'll be contracting after this current 6 months contract so the objective is to max my earnings during that time.

I read the guide from SJD and it seems they'll do all that for me.
I admit i know very little about running a business but I'm quite happy to pay a professional company to do most of the dirty work as long as I take home more than what I do with an umbrella company.
Am I wrong to assume that?

[kirk]

Thanks for the advice.
To be honest, I'm not sure i'll be contracting after this current 6 months contract so the objective is to max my earnings during that time.

I read the guide from SJD and it seems they'll do all that for me.
I admit i know very little about running a business but I'm quite happy to pay a professional company to do most of the dirty work as long as I take home more than what I do with an umbrella company.
Am I wrong to assume that?

Not really, you just need to be sure what you are getting into; as oraclesmith says, a quick read through some of the online guides or a book is the least you should do before taking the plunge IMHO

[oraclesmith]

...as I take home more than what I do with an umbrella company.
Am I wrong to assume that?

No, but if the taxman comes a-visiting, best dream up a better reason !

[biton]

No, but if the taxman comes a-visiting, best dream up a better reason !

Well, 50% tax is way too steep for my taste.

According to the guide I read, all I need to do is fill some timesheets and make my accountant aware of any communication with the HMRC.

I'm not trying to break the law, just to take advantage of the holes in it as most contractors do (if we're really being honest here).