I've just started looking into setting up as limited rather than sole trader as I currently am.
Anybody got any pointers in terms of the best way of going about it?
Recommendations? Experiences? Potential pitfalls?
Obviously there are loads of websites out there but if you have any which from experience have been particularly helpful for a noob that would be good.
Appoint a locally recommended accountant and speak to him, he'll know what to do ref set up and tax liability/IR35/AWR etc. If youre new to the contract market consider an umbrella company until your settled into it then switch to a Ltd co at any time that suits you.
1- Talk to you accountant. If you dont have one get one.
2- Simple (but really annoying thing) - If you are waiting for your company phone number do not give your home phone number as the company number on any forms. A tesco £10 mobile will do (avoids constant marketing calls to the missus - 10 years later!).
3- Dont use your name in the company name - John Smith Dentistry (lots and lots of reasons).
4- You can buy an off the shelf (XYZ123 LTD) with a vague set of articles of association for maybe £70. Do you really need more than this? You can "trade as" whatever you want.
5- Do you have a relationship with a bank - but not your main personal bank? I would never ever have my mortage and company accounts in the same bank. Recommended by friends - repeatedly.
6- Go for it. A limited company has limited liability legally. Pay your VAT - always on time, pay your PAYE (maybe a bit late if you have to), never trust your bank totally. NEVER EVER agree a personal guarantee on a business loan. Ever.
I'll think of some more later!
I'll think you find most banks won't give you an account in the first place without a personal guarantee, they exploit the lack of knowledge of new business start ups and get in there early
I'll think you find most banks won't give you an account in the first place without a personal guarantee,
My experience is the opposite - they were very very keen to open a business account and wanted personal ID and personal address proof (passport, personal bills) but I've never been asked for a personal guarantee for a business current account (even with moderate overdrafts). PG's only came into play for significant overdrafts and loans. Every bank is different though, and today is very different to last year.
Thanks chaps, some useful stuff there which I haven't come across elsewhere.
I pay a company to do my payroll, PAYE, VAT, quarterly/end of year accounts and liability insurances etc. They get a monthly fee wich is not cheap but at least it's variable (i.e. if I want to stop part way through a year I can). I opened a business account with my current account bank. They fell over themselves to give me free banking and lots of support/no personal guarantees. I paid £100 to have a Ltd set up in the name I wanted as well.
Whatever you do, keep on top of your admin and pay your VAT/PAYE. PARTICULARLY VAT or you are going to jail... Also make sure you investigate the flat rate VAT and employers PAYE holiday schemes. These equal free money! 
I'm a long term contractor (i.e. I only have one client for months at a time) and use a firm of accountants called CM Easy (contracting made easy).
They do all of my PAYE, NI, VAT; calculate how much salary and dividend to pay myself.
They set up the Ltd company for me, assisted with setting up the company bank account.
They even submit invoices / timesheets to the client on my behalf.
All I have to do is approve the invoices (oh, and do some work...)
I used Companiesmadesimple.com as a customer insisted I was a Limited Company before they would pay the bill, don't know why. They also provide various services on top of the setting up.
Got screwed over by said customer and would like to find a Get-rid-of-your-company-made-simple.
bedmake - send me a mail morgsDOTbdaviesATgmailDOTcom
As an accountant I'm going to recommend using one. We offer the same services as Rugbydick describes which allows him to get on with what he knows best with some to look after the accounts and admin side of the business.
I don't recommend off the shelf packages for limited companies as the extra the accountant will charge to change the yearend dates, create the share issues and ensure you registered with all the relevant departments you may as well have paid them to set it up correctly in the first place which is normally around £110 plus VAT.
A good accountant will ensure you are on the correct VAT scheme as it can make a big difference and even though you could think that you're paying a lot less in VAT on a flat rate scheme you could also end up paying a lot more Corp Tax as a result. They will also inform you on how your business is doing, benchmarking you against other similar sized companies in your industry and telling you how to improve areas that you're lacking in.
The rules have changed regarding late payment of PAYE and now you need to submit monthly returns and payments must be made on time otherwise you are penalised. There is also a new HMRC unit Business Record Checks set up to target small businesses ensuring they are keeping their books in good order with big penalties to rake in some cash for the treasury. Fines such as £15 for a missing invoice can soon mount up.
I would strongly recommend taking out fee protection insurance in case you're investigated by HMRC. The insurance protects you from the accountants fees in complying with the investigation. The helpline that comes with this insurance is worth the fee alone especially the employers helpline when you start to employ other staff.
@Craigxxl not asking for a quote. What are fees typically please? I'm not convinced i'm on the best scheme...
Boblo, I don't have your email address to reply to and I don't think the forum would to pleased with me to use it for promotion of the business but please feel free to contact us
We do not have a standard package instead we tailor the services to your needs and business size.
The Business Link website has the quickest company set up - linked straight to Companies House.
I have just done one on there and it was a doddle (especially compared to years ago when you had to buy an off the peg and change it).
I did get our accountant to be our company secretary.
As you are coming from Sole Trader status, there is an opportunity to essentially 'sell' your current company to the new limited company. Know nothing about it but a friend did it (he was well established in his field) and he saved a shed load of tax going forward. Ask an accountant for more detail
i use these guys for my accountants and they are pretty good.
All my expenses and invoices are done online.
They have lots of guidance on setting up a company too and were really helpful when I did it.
you MUST get a decent accountant. this is key. if you are a it type contractor then maybe using an umbrella company is the way to go, but it is cheaper to run your own. The accountant is key though. find a good local one through recommendation.
accountant doesnt have to be local just good. Like I said i have never met mine, but their website is soo good it doesnt matter.
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