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if i set up a company, and make no money, what am i liable for?

(5 Posts)
stitchtime Mon 07-Sep-09 14:42:31

any advice appreciated. My friend is looking into setting herself up as a consultant, but isnt sure she will make much money. she needs to register the company soon, in order to get a contract she is interested in, but isnt sure if it will materialise or not.
does anyone know , will she have to fork over anything at all, if she is registered, but not earning anything?

MrAnchovy Mon 07-Sep-09 19:33:13

All it needs to cost is the £15 annual return electronic filing fee. See this information on dormant companies.

Bramshott Wed 09-Sep-09 10:31:41

If she is a consultant, does she need to set up a company at all? Can't she just freelance as a sole trader?

Kerrmunications Sat 19-Sep-09 18:58:17

Like the previous poster said, she should just freelance as a sole-trader. All she needs to do is tell the Inland Revenue within 3 months of setting up (starting the work) that she has done so. She will be liable for NI payments - something like £2-3 a week, but if she makes no profit, she shouldn't have anything over and above that to pay. (Disclaimer - I'm not an accountant, so please don't take my advice at face value - but I think I'm right!)

ChasingSquirrels Sat 19-Sep-09 18:59:54

the contract might insist on a company being used.
MrA is correct re the annual return. Accounts would also need to be filed, but a DCA form (dormant company accounts) on the Companies House website could be used and that is free.

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