Talk

Advanced search

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?
tia

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.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now