Setting up a simple company/registering a name etc...

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Setting up a simple company/registering a name etc...

14 posts & 7 voices | Started 1 year ago by DrP | Latest reply from WorldClassAccident

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DrP - Member

I'm not an idiot (in my field), but essentially I'm a bit blown away by the gov website on this subject.
I'm not asking for personal consultations on the matter for free, I'm just looking for a small bit of advice from NICE people who have done something similar!

Essentially, I'm looking to register a company name (well, two), and to use that name (well, two names..!) to be ran as a small company. i don't want to be VAT registered, instead the VAT will be declared at the end of the year (I'm not expecting a big turnover to be honest, it's for personal locum work).

I am planning on setting up a simple high street bank account to manage the in/output of money, and of course will be keeping (digital) books/spreadsheets.

When it comes to registering the names and informing company house of the business, is it best to go through the gov website/forms, or generally is it best to have a third party involved in the set up?

Cheers,

DrP

Posted 1 year ago #
ourmaninthenorth - Member

Don't use a third party - will costs lots more than it needs to for the sake of filling in the forms at Companies House.

Am happy to help you out if you pay some money to a charity of my choice.

Sound fair?

Tom

Posted 1 year ago #
turin - Member

Just curious,what do you mean about the vat being declared at the end of the year? Im a sole trader and hadnt heard of this as an option...

Posted 1 year ago #
pixelmix - Member

Essentially, I'm looking to register a company name (well, two), and to use that name (well, two names..!) to be ran as a small company. i don't want to be VAT registered, instead the VAT will be declared at the end of the year (I'm not expecting a big turnover to be honest, it's for personal locum work).

First off - income tax etc:-

I'd speak to an accountant to check if it is worthwhile setting up a ltd company. It is generally only worth it if you have a turnover over £X amount, or there is a chance of people suing you (in which case the company gives you something to separate yourself from to a certain extent). Otherwise, the cost of companies house filing every year, more detailed accounts required etc would outweigh any benefits.

If you are just receiving a few £1000 per annum for services, you would be better just operating as a sole trader. I receive a small amount of funds for software work I used to do, and just do a tax return at the end of every year.

Separately, VAT (it sound like you were confusing the two in your first post):-

You do not need to declare VAT at the end of the year unless you are charging VAT. You only need to charge VAT if you are VAT registered, and you only need to be VAT registered if you are above the threshold (around £68,000 or so), or choose to be VAT registered (perhaps because you are expending a lot of money on items with VAT on, and want to recoup that VAT).

Posted 1 year ago #
DrP - Member

Tom,
Sounds reasonable! Have you set up your own business then?
At what point/how does the logo get registered?
Also, from the above, it sounds like a limited is the way to go (as I'd look to be having more people under the company) - i expect, as like most things, this is more complicated...

I tell you what, my eMail is in my profile - that's prob the best way to communicate?

DrP

Posted 1 year ago #
DrP - Member

"tax return at the end of every year..>"

That's what I meant!

DrP

Posted 1 year ago #
algarvebairn - Member

Hi Dr P, I'm an accountant specialising in the type of thing you're talking about. You said you didn;t want a free consultation, but I'll give you some free info instead:

1.) If the locum work is thu an agency then you will almost certainly have to form a limited company. depending on your level of income (both inside and outisde the company) this can be a very tax efficient way of operating. But you need to take advice as to how to manage this.

2.) To set the company up you can either, as has been said already, do it yourself or pay about £40 to get it done online. Haven't used the CH website for this so can't really comment. Again, though if you're doing it yourself, you need to think about the most tax efficient shareholding and this is normally easier before the event.

3.) If the locum work is medical - which it sounds like - you're outside the scope of VAT so you can forget it entirely.

HTH.

Posted 1 year ago #
ourmaninthenorth - Member

DrP - will email tomorrow, if that's OK. Am going to escape work for an early night tonight and trundle home on the bike.

Posted 1 year ago #
gusamc - Member

Cater Allan bank was good for me (*you'll probably need a business account)

have you looked at 'umbrella' companies (*not sure if it's good/legal for medical work). Not as tax efficient, not as much hassle. (see Parasol as a good eg, you get all insurance etc(*check for medical and some contracts require min amounts) and you effectively work for them, so much less tax efficient, *the contract will be between them and whoever pays, so may not be suitable for one offs, odd job work etc).

A limited company has running costs (and legal obligations), it's worth having advice/

Posted 1 year ago #
DrP - Member

Thanks for the replies there - all seem useful. Tom, no rush at all, thanks!

I'll be looking for one company to deal with (medical) locum work, the second for a slightly different line, again medical related. As I want to have a specific company name/logo (for both lines really) I wouldn't want to use an umbrella company really.

Whatever either business earns, I'll be a higher rate tax payer, if that helps?

"you need to think about the most tax efficient shareholding and this is normally easier before the event."
Could you expand on this please? (that's psoh talk for "eh?"!)

DrP

Posted 1 year ago #
gusamc - Member

your research subjects are:
dividends
entrepreneur relief

Posted 1 year ago #
algarvebairn - Member

DrP on the shareholding point: if you are married you spouse could be a shareholder in the company. You could then use his/her basic rate band to avoid paying higher rate tax. Another way to do this is to use the company as a quasi-pension: Some or all of the income generated in the company can be retained in the company reserves until such time as it is more tax-efficient to do so. Or you can build up the reserves until you stop doing the locum work and then, if you know the cessation is terminal, apply for the reserves to be distributed as capital and then only pay CGT.

Posted 1 year ago #
algarvebairn - Member

@gusamc, although I have an obvious bias, I have never really seen the point of Umbrella companies. If you don't want the hassle of the limited company or if its short term, then yuo'd be as well to go PAYE with the agency. Most of them will do this if you ask them.

Posted 1 year ago #
WorldClassAccident - Member

DrP - I did the same thing last year. I can email you all the details or you can ring at the weekend if you want to discuss. Easy to do and cheap. I can recommmend you an accountantin Southampton if it helps. It is a lot easier than I thought.

Posted 1 year ago #

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