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[Kevin Wood]

.....
I finished the last few years of my life freelancing, didn't have to register anything.
...

Don't you mean the last few years of your career? Or is there something you've not told us, AA?

Can you get an internet connection the other side of the pearly gates? 

Kevin

[omegadti]

might be worth remembering that if you are self-employed rather than employed by a ltd co. that pays your tax PAYE you will forfit rights to benefits should the work go belly up

[jereboam]

If you are going to do contract work in the IT field, you may find that many of the agencies will only deal with a limited company, and won't go near sole traders. 

I would strongly advise you to use an accountant and get him to do the company set up.  It should only cost a little more than buying an OTS package, and you can choose your own name and registered office (the accountant).   Find a local accountant - don't bother with one of the big firms specialising in contractor/service companies.

The low salary/high dividend approach is OK, but you have to be careful - HMRC (justifiably) don't like it, and you will just draw attention to yourself.  Once that happens, beware of IR35 - it's a set of rules for service companies whereby HMRC deem 95% of your gross invoicing as personal salary, and tax it as such.  No expenses, no benefits in kind, no corporation tax - its all going on your income tax.  There are ways of dealing with this - you'll need to do some research.

You have years of administrative fun ahead of you...

[Auto Addict]

.....
I finished the last few years of my life freelancing, didn't have to register anything.
...

Don't you mean the last few years of your career? Or is there something you've not told us, AA?

Can you get an internet connection the other side of the pearly gates? 

Kevin

Do I come here often? :-/

[tunnie]

going back to this and looking at some of the details, looks like there are 2 options, due to the budget changes.

Either umbrella company or limited, i don't like giving other people my money so i think i will setup my own limited company 

Can anyone recommend a good accountant in Northants or London?

I will call the business link people tomorrow as well 

[Mr Skrunts]

going back to this and looking at some of the details, looks like there are 2 options, due to the budget changes.

Either umbrella company or limited, i don't like giving other people my money so i think i will setup my own limited company 

Can anyone recommend a good accountant in Northants or London?

I will call the business link people tomorrow as well 

Dont go for one in London then. 

[Auto Addict]

Still think, if you are only selling yourself, the best option is a sole trader.

It has better tax perks.

[tunnie]

Still think, if you are only selling yourself, the best option is a sole trader.

It has better tax perks.

According to a few sites, thats no longer possible for contractors.

[Auto Addict]

http://www.bytestart.co.uk/content/19/19_1/what-is-a-sole-trader.shtml

[tunnie]

http://www.bytestart.co.uk/content/19/19_1/what-is-a-sole-trader.shtml

And i repeat, you CANNOT be a sole trader if you contract.

http://www.ir35calc.co.uk/contractor_sole_trader.aspx

[Auto Addict]

Ok, if you work for an agency, you are employed by them.

If you find your own contract, you can act as a sole trader!

This is what I used to do.

The two situations can run side by side.

[tunnie]

Ok, if you work for an agency, you are employed by them.

If you find your own contract, you can act as a sole trader!

This is what I used to do.

The two situations can run side by side.

Sadly the contract is via an agency, as are most.... they are advertised online via Agencies for the companys they will contract you too.

The agency will pay me not the place i will work for, so its the Ltd company way i think. Agency did ask for my company number and such....

[Taxi_Driver]

going back to this and looking at some of the details, looks like there are 2 options, due to the budget changes.

Either umbrella company or limited, i don't like giving other people my money so i think i will setup my own limited company 

Can anyone recommend a good accountant in Northants or London?

I will call the business link people tomorrow as well 

Advantage of umbrella company is less hassle...however they wont be 'imaginative' on your tax return...
I had a ltd company up until last year....i used it for IT contracting....but havent done that for years now..but you still have to do returns for it and pay companies house every year....so couldnt see the point and closed it down.
Get a good accountant tunnie.....and he'll claim for things you wouldnt have imagined you could  ....things that spring to mind are.....home office (rent charged to ltd company by yourself  )
, part of leccy bill, part of phone bill, stationary/consumables etc....

I think the current government has closed the loophole of being able to pay youself dividends from the ltd company......by doing this i just got taxed a flat 25% on the dividends.....handy if you were in the 40% bracket  but worth checking with your accountant if the loophole is still closed.

Good luck 

[Taxi_Driver]

Oh and i wouldnt bother registering for VAT unless you have to......my accountant advised me against it...as it is too much hassle to do the returns every 3 months.....i used to take time off when i started getting near the threshold 

[tunnie]

Cheers 

I intend to ring up Mr Tax man to get the final details, there seems to be quite a few websites that will setup a Ltd company in just a few hours