Evening peeps...

I'm looking into doing this because the freelance agencies I will be registering with require me to be limited for tax reasons (I will be trading on my own so it's not like I will be starting a small business with staff etc.).

I used to trade as a limited company about 12 years ago (it does not exist now) so I know the ropes but I was wondering if anyone had any tips regarding any new rules since then plus ways to maximise the Tax system in the first year. I'm sure you could delay your first Tax return for about 18 months when I did it before.

Please post any specific or general advice because it may help others that read this thread who are looking to do the same thing as me.

At the same time, I've been doing some research of my own so will post any good links or snippets of info that I find but knowing how many accountants play fantasy football I'm sure FISO could come up with some really sound advice.



Cheers in advance.


Rich

whats your company?
is it that photo thingy?

IR35, read it.

Do as much as you can online, gets quite a bit of money off the taxman

It's probably not the best (most cost effective) way of doing it but I used to go through another company, Brookson. The gist was that you bought a dollar share in your company and then just got paid minimum wage, expenses, and the rest of your earnings as a dividend.

Made things very simple but obviously Brookson were making money off me as well.

So what line of business will Jive Bunny Inc. be in?

Small companies not really my thing. You will need an accountant to do your tax returns and prepare accounts - small local firm best for a 1 man band. He'll be able to advise you on paying dividends vs salary as well to get you the best tax deal. The IR35 rules are key, as someone has already mentioned. I don't get involved in that sort of thing but any small accountant will be well up on the rules. If you do ever need to check anything that you've been told then feel free to give me a shout and I'll be happy to give you a view or check it out for you.

There's only limited scope to minimise your tax - basically just make sure you're paying yourself in the right way (i.e. divi or salary - divi is generally cheaper for owners of small co's when you take into account the tax that the company pays and the tax that you pay when you take your cash out of the business as a whole) and make sure you get all the deductions against tax that you're entitled to. I suspect that you'll have to pay yourself some salary as well as taking divi's, but not sure what the current thinking is on this - it used to be the case that you pay a minimal £5k salary p.a. and take the rest in dividends, but like I say I only work with larger companies and its been a long time since I've done any accounts or tax. If you have to do that then you'll have to do PAYE returns, but your accountant should be able to handle that for you at minimal cost.

Good luck

Been a fair while since run a business(very badly) but dont think accountants have changed much, in that one's worth having dont do anything at minimal cost
But a good accountant is to me key, no matter what size business you intend to run, they will if you get a good one and listen (something I failed to do) pay for themselves.

Some previous related tips and comment particularly on setting up as a limited company and operating as a freelancer:

viewtopic.php?f=45&t=22342

viewtopic.php?f=45&t=19938

Business Link are really helpful, sorry took me ages to find the link

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805

Just the 2 years and 5 months, tricky URL to find?

Cracked up at that. Never too late to post in a thread I reckon! How are things going, Dixie?

Still freelance Jonathan... I'm generating just enough work from my own contacts so I backed away from the agency route.

Thanks for asking mate.


Rich

Good to hear, Dixie. I know we are in similar lines of work, and for us during the last 18 months it has been absolutely blinkin' manic! Nowhere near as profitable as in the past though, but enough to keep the wolves from the door.

Advertisers are returning though so things should improve.