Reply to: What is needed to set up Ltd Company

[oraclesmith]

If you're thinking of giving your wife a share in the company, and she's not actually working for it (and expect to gain from using her tax allowance) then you need to read about the S660 settlements legislation.

See: http://www.contractoruk.com/news/s660.html

[dave_m13]

Thanks guys, its helping slowly understanding all this.

I should really contact accountant but thought i'd ask here first.

Its a share question, when setting up company do people allocate all shares to the themselves or split them between spouse, I suppose it depends on different circumstances.

My wife does not work, would it be better to split 50/50?

Thanks
Dave

[Gonzo]

You could be right there, but there's no legality issue not having it and the compulsory insurance act includes the one-man-band Ltd co exemption. Personally I don't have it at the moment and if a client insisted on me having it, I'd go ahead and get cover at that point.

It's clear I'm not an insurance fan, but I can understand most clients insisting on professional indemnity / public liability.

I think that it is worth pointing out in any discussion of Employers Liability Insurance that it used to be compulsory for all Companies to have this but the exemption for one-person Ltds was introduced in 2005. This might explain why there are some differences of opinion on here over whether or not it is necessary.

http://www.bytestart.co.uk/content/2...-changes.shtml

[TheRefactornator]

Can anyone recommend any of the accountancy firms and how do I change from my existing one?

There are a lot of recent opinions for both these questions on CUK. Do a search.

[dave_m13]

Thanks for the information.

Well I need to get it set up asap, due to a bid going in. I personally believe that I need all the insurances, including employers, I may not require it but they do not actually specify which they require.

I think for ease on my side, will just use company formation here and then check all insurance stuff when my insurance company calls back.

Can anyone recommend any of the accountancy firms and how do I change from my existing one?

[Ardesco]

You could be right there, but there's no legality issue not having it and the compulsory insurance act includes the one-man-band Ltd co exemption. Personally I don't have it at the moment and if a client insisted on me having it, I'd go ahead and get cover at that point.

It's clear I'm not an insurance fan, but I can understand most clients insisting on professional indemnity / public liability.

I'm not saying they are right, or that you have to have it (I'm no insurance fan myself and think that for people in our position it is usually a huge waste of time because there are lots of ways they can wriggle out of paying you) but it occasionally happens. I have had three clients insist on seeing the insurance paperwork before I started.

My advice would be join the PCG, get yourself of bunch of insurances thrown in for free and a discount on anything else you need.

[TheRefactornator]

Also some clients/agents will insist on you having employers liability insurance before giving you a contract.

You could be right there, but there's no legality issue not having it and the compulsory insurance act includes the one-man-band Ltd co exemption. Personally I don't have it at the moment and if a client insisted on me having it, I'd go ahead and get cover at that point.

It's clear I'm not an insurance fan, but I can understand most clients insisting on professional indemnity / public liability.

[iaann]

Ok,
But what happen after? I mean if you don't want to use an Umbrella, you have to manage your own taxes, fees, etc etc.. I'll need a degree to do that ! :d

[Ardesco]

Also I believe that Nixon Williams will set up you LTD co for you free of charge if you use them, wouldn't surprise me is SJD and the other big contractor accountancies do the same.

(I may be wrong of course as I personally don't use them, a quick phone call should give you all the answers)

[Ardesco]

Also some clients/agents will insist on you having employers liability insurance before giving you a contract.

[pmeswani]

Employers liability? Not required for a one-man-band Ltd co.

Well... one may want to sue oneself for employer related libabilities.

[TheRefactornator]

I believe you need employers insurance too. I used Caunce O'Hara..

Employers liability? Not required for a one-man-band Ltd co.

[oraclesmith]

I believe you need employers insurance too. I used Caunce O'Hara.

I used a company called Hanover to form my limited. http://www.hanovercompanyservices.com/

They did an OK job on the initial paperwork and it only cost about £80 - it's all standard stuff really. I didn't want to get too involved with any other services (eg. secretarial) so I left it at that. Job done.

[BigJake]

Trust

You can pick one up on the web for around £30, with documentation emailed to you. Trouble is, if you need a bit more 'support' and not feel like you're imposing by asking further questions, you typically would be looking at a service like that on CUK. Also, you know loads of other contractors have used the service which is comforting

I've used 'Duport' as well as the CUK service, both very good IMO.

[dave_m13]

Yes I have, is the company formation from this site any good compared to others that I have seen on the internet, lots of different prices etc.

I am not a first timer to contracting, being self employed for a few years and couple of contracts. However am new to looking at Ltd company, Umbrella for me does not work out very cost effective for a contract that is coming up.

I already have public and private indemity insurance whilst I am self employed but is there any other insurances required for Ltd, do I have to have employers insurance as well as it is a ltd company. I am trying to find out whether the insurance I have at the moment is transferable to a ltd company.

Thanks

On. The. Right. Hand. Side. Is. A. Box. Entitled. CUK Navigation.

It. Has. "Company Formation".

It. Has. "First Timers".

It. Has. "Insurance".

Have. You. Read. Them?