Reply to: Limited Company, Personal account and Agency

[Baffle]

Hi,

Just a side note but you could have opened up an account with cashplus Business.

They open up a bank account in your company name. No credit facilities so no credit checks etc.

You would just need to prove your ID and address.

I see you've gone umbrella route anyway now, but just thought I'd mention it as it would have been a solution to your earlier issue of not having a company bank account................

[LisaContractorUmbrella]

Seems he is quite a regular at doing that from what I see on the forum.

Yep. NLUK does make me chuckle - bless him

[VectraMan]

Speak to an accountant and get a fixed price for sorting out the mess in the most efficient way. It might be that you can treat those 3 weeks as being self-employed and then if the company has never traded it would be easier/cheaper to close down. There are penalties for delaying though so don't hang about.

If inside IR35, I thought you could pretty much keep the money and declare it on your self-assessment. Inside IR35 with a Ltd. is not the same as "self employed". And clearly the Ltd. has traded (which is the reason for the whole mess).

Which means you need to do a CT return before closing your company, but the closing part is easy - just sign and send off the form.

[northernladuk]

Seems he is quite a regular at doing that from what I see on the forum.

With so little information given bearing in mind the awful situation going on and taking in to account money being advanced I can't see how on earth how anyone can come close and how any figure given to you would be meaningful and why you would want such a wooly guesstimate so thought I would lighten the thread. You can't expect to get in a situation like this and not take a bit of a tongue in cheek ribbing I didn't even use a 'cut out for', 'get an accoutant', 'you are a buiness' line, any of which would have been apt.

[keyser666]

No but it was pretty funny

Seems he is quite a regular at doing that from what I see on the forum.

[LisaContractorUmbrella]

Hardly helpful

No but it was pretty funny

[Contreras]

Get an accountant to shutdown your LTD and produce a P45 for you so you can get your tax code right and avoid a nasty tax bill when you do your self assessment....

That will be tricky if the company has not yet registered for PAYE - assuming that is the case.

Edit: but a P45 probably isn't needed anyway as it's a new tax year, speak to the umbrella about doing a P46 instead.

Thanks, will be looking into all that now. It's all coming to fruition now and I dont want to be in deep doo doo. I only had 3 weekly payments under the Ltd company so not hard to work out. Glad it has come about now.

Speak to an accountant and get a fixed price for sorting out the mess in the most efficient way. It might be that you can treat those 3 weeks as being self-employed and then if the company has never traded it would be easier/cheaper to close down. There are penalties for delaying though so don't hang about.

[keyser666]

Get an accountant to shutdown your LTD and produce a P45 for you so you can get your tax code right and avoid a nasty tax bill when you do your self assessment....

Thanks, will be looking into all that now. It's all coming to fruition now and I dont want to be in deep doo doo. I only had 3 weekly payments under the Ltd company so not hard to work out. Glad it has come about now.

[Wanderer]

they wont have a tax code for me either

Get an accountant to shutdown your LTD and produce a P45 for you so you can get your tax code right and avoid a nasty tax bill when you do your self assessment....

[keyser666]

£62.32 if you are lucky. They keep all the half pennies you know.

Hardly helpful

[northernladuk]

So have sorted a umbrella and will be paid tomorrow. Any idea what i would expect to receive from the following for last month? Monthly fee is approx £91. This is from last months pay and they wont have a tax code for me either

Pay was £3528

TIA

£62.32 if you are lucky. They keep all the half pennies you know.

[keyser666]

So have sorted a umbrella and will be paid tomorrow. Any idea what i would expect to receive from the following for last month? Monthly fee is approx £91. This is from last months pay and they wont have a tax code for me either

Pay was £3528

TIA

[keyser666]

Thanks all for the advice seems I have opened myself up to a lot more than I thought

[LisaContractorUmbrella]

Can anyone answer my earlier question as to whether the Agency will be able to send the payment FP/CHAPS with the payee name "my name/ltd company name?" my bank have not said that they wont receive it but are saying because my name was not on it they are not accepting it.

I know the agency will not want all this next time so will go back to my umbrella company cellbrite

Your bank will probably not accept a payment made out to 'mylimitedco' into a personal bank account and I can't imagine the agency will make a payment for an invoice raised from 'mylimitedco' to you personally - there are all sorts of reasons why. I think that you need to accept that you won't get payment today and make some sort of contingency plan - bank overdraft??

With regard to your tax obligations - if you are inside IR35 you will be paying tax through PAYE so you need to establish how much you will owe to HMR&C and put that aside (in your own account and not your sister's) rather than randomly picking on 25%.

I don't know the umbrella company you mentioned but you would definitely be safer with them than with running your own Ltd without an accountant.

Good luck

[Contreras]

Wouldn't putting it in your sisters account (and to some extent yours) mean you are getting a personal benefit from the money, i.e. interest and therefore you BIK comes in to play here?

Those were my first thoughts too. In effect the entire turnover has been put beyond the reach of the company.

At best HMRC would want to treat this as salary, so full NI + income tax are due and 25% wont't cover it. Plus the company will be in trouble for not registering for PAYE as an employer.

I can't see it treated as a loan - the money is spent and there is no business account to pay it back to anyway.

It may be possible to treat everything to date as self-employed income. The company could then be wound up cheaply without having traded. Tax and NI would become due, plus possibly a fine for not declaring as self-employed status but still may be the cleanest solution.

You need an accountant to help you out of this mess and you need to start putting aside as much money as possible to pay any tax due, 25% is nowhere near enough imho.