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Lorrainelovesplants



Joined: 13 Oct 2006
Posts: 6473
Location: Cornwall
PostPosted: Thu Mar 12, 15 9:23 pm    Post subject:  Reply with quote    

Beleive it or mot I already do my accounts and pass them to the accountant to finalise. Ive been happy with them for a couple of years - they save me tax....

I think I will need to have a chat with them, but wanted some down to earth info so I at least had an inkling of what he would be talking about.

So what's the difference between partnership and ltd then?

Ty Gwyn



Joined: 22 Sep 2010
Posts: 3977
Location: Lampeter
PostPosted: Thu Mar 12, 15 9:29 pm    Post subject: Reply with quote    

With an Ltd you`ll save yourself even more Tax.

vegplot



Joined: 19 Apr 2007
Posts: 21297
Location: Ynys Môn
PostPosted: Thu Mar 12, 15 9:37 pm    Post subject: Reply with quote    

Lorrainelovesplants wrote:
Beleive it or mot I already do my accounts and pass them to the accountant to finalise. Ive been happy with them for a couple of years - they save me tax....

I think I will need to have a chat with them, but wanted some down to earth info so I at least had an inkling of what he would be talking about.

So what's the difference between partnership and ltd then?


Limited Liability + Partnership = LLP . It's in the title. My original post gave you a path to follow but if you didn't want to do that here's a direct link https://www.gov.uk/business-legal-structures/overview

A limited company is much less likely to be investigated by HMRC than a small business and you can pay yourself through dividends (caveats apply) where tax is payable at only 10%. Your accountant will give you facts rather than opinion.

Falstaff



Joined: 27 May 2009
Posts: 1014

PostPosted: Thu Mar 12, 15 11:18 pm    Post subject: Reply with quote    

Partnership : - you and he can each pledge everything you own as between you - without specifically stating that !

LTD Co - You and he can pledge everything "In the Company" - that does Not necessarily include your house !

Limited Partnership - don't worry about it !

You need to talk to a proper accountant (One who is on your side - probably a one man band)

Taxation as "dividend" can save few quid - but Corporation tax does start with the first pound of profit - there are NO "Personal Allowances" and you HAVE to pay yourself as an employee as well !

Nobody can answer those questions without knowing rather more tahn you may wish to publish here !

vegplot



Joined: 19 Apr 2007
Posts: 21297
Location: Ynys Môn
PostPosted: Thu Mar 12, 15 11:46 pm    Post subject: Reply with quote    

Falstaff wrote:
Taxation as "dividend" can save few quid - but Corporation tax does start with the first pound of profit - there are NO "Personal Allowances" and you HAVE to pay yourself as an employee as well !


The secret is to not make a profit and I'm breaking the law by not paying myself minimum wage.

Nick



Joined: 02 Nov 2004
Posts: 33694
Location: Hereford
PostPosted: Thu Mar 12, 15 11:47 pm    Post subject: Reply with quote    

Just don't declare how many hours you do.

Mistress Rose



Joined: 21 Jul 2011
Posts: 8905

PostPosted: Fri Mar 13, 15 7:48 am    Post subject: Reply with quote    

We have had a Limited Company with husband, son and myself as directors and shareholders for a number of years now. For us it makes it easier and of course you do have limited personal liability.

For a small company, you have to have your accounts looked at, but not audited by an accountant, and to have ours dealt with from computer programme and then preparation of and submission of reports to HMRC and Companies House, it costs about £400-£550 inc. VAT. The Companies House return is quite easy, so we do that ourselves and have to pay £13 doing it online.

We use TaxCalc to sort out the NI and Tax, but it isn't necessary if you only have one or two employees.

I would look at the government web site and discuss this with your accountant before deciding how you want to go.

Lorrainelovesplants



Joined: 13 Oct 2006
Posts: 6473
Location: Cornwall
PostPosted: Sat Mar 14, 15 11:06 am    Post subject: Reply with quote    

Thanks all - Ill speak to my cousin (dodgy accountant - taught me how to do my books) and then make an appointment to speak to my accountant.

Lorrainelovesplants



Joined: 13 Oct 2006
Posts: 6473
Location: Cornwall
PostPosted: Mon Mar 30, 15 9:50 am    Post subject: Reply with quote    

Well, Ive had an ineteresting chat with the accountants.
We have decided to go for Ltd co. There are many reasons.
They will arrange all this for me for a fee. I was a bit surprised - just to set it all up (no accounting or anything) will cost me just over £300.

Surely I can set up as a ltd co a lot cheaper than this?

Ty Gwyn



Joined: 22 Sep 2010
Posts: 3977
Location: Lampeter
PostPosted: Mon Mar 30, 15 10:08 am    Post subject: Reply with quote    

Lorrainelovesplants wrote:
Well, Ive had an ineteresting chat with the accountants.
We have decided to go for Ltd co. There are many reasons.
They will arrange all this for me for a fee. I was a bit surprised - just to set it all up (no accounting or anything) will cost me just over £300.

Surely I can set up as a ltd co a lot cheaper than this?



£25.00 it was a few years back,check out with Companies House if it has increased.

Lorrainelovesplants



Joined: 13 Oct 2006
Posts: 6473
Location: Cornwall
PostPosted: Mon Mar 30, 15 10:25 am    Post subject: Reply with quote    

But am I missing something?

Bit of a difference between £300 and online application £15.

What exactly is the difference? Surely its the same thing?

I did ask him what I would get for the fee, and he mentioned registration, and sorting out a bank account. Surely I can just sort a bank account at the bank?

Nick



Joined: 02 Nov 2004
Posts: 33694
Location: Hereford
PostPosted: Mon Mar 30, 15 10:29 am    Post subject: Reply with quote    

Solicitor's time, and, I imagine, their liability insurance to make sure it's all done properly.

Lorrainelovesplants



Joined: 13 Oct 2006
Posts: 6473
Location: Cornwall
PostPosted: Mon Mar 30, 15 10:31 am    Post subject: Reply with quote    

Just spoken to a guy at Business support on the .gov.uk pages on setting up a business.
Apparently this is the normal fee for an accountant to do this (I should have been an accountant obviously).
So he said just fill in the online application and contact HMRC to let them know of the change.

wellington womble



Joined: 08 Nov 2004
Posts: 14821
Location: East Midlands
PostPosted: Mon Mar 30, 15 12:07 pm    Post subject: Reply with quote    

Falstaff wrote:

Taxation as "dividend" can save few quid - but Corporation tax does start with the first pound of profit - there are NO "Personal Allowances" and you HAVE to pay yourself as an employee as well !



But you can pay yourself just the personal allowance, which is untaxed by the company as it's an expense and untaxed for you, then take rest as dividend taxed at 10 percent instead of 20 or 40.

Are allowable expenses different for limited companies? Surely a sole trader should also be able to take of expenses before profit? I am.

A limited company will also allow you set up a pension scheme controlled entirely by you. You can decide where to invest and it can also loan up to 50 percent of the fund to you, at market rates. If you have pension schemes already, you may be able to transfer them and access some of the money for the business (if this is wise or desirable).

Lorrainelovesplants



Joined: 13 Oct 2006
Posts: 6473
Location: Cornwall
PostPosted: Mon Mar 30, 15 12:33 pm    Post subject: Reply with quote    

My situation is complex as I already get a pension and also have a PAYE job. There are reasons why limited is the way forward now.

I just dont want to pay £300 for something I can do myself.
Ive just made an appointment at the bank to open a new business account and am waiting for my dodgy accountant cousin to phone me with advice (not my actual accountant you understand).

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