starting Ltd company - anyone with any experience?

[teacakes]

DH and I have just started a Ltd Co and not sure about how to pay ourselves dividends / salary etc. He is the main fee earner and is doing consultancy work.

Does anyone have any experience in this area, or done something similar?

get an accountant! It's a minefield and a good accountant will save you ££££.

Second geekgrrl completely - if you fill the bl**dy forms in wrong, it can cost you a fortune, let alone anything else you have to do!

We do have an accountant, but they seem to be vague on details - like how often you should be drawing out dividends, how to put money aside for tax; if I should be a director or just a secretary etc.

Do you have a Ltd - what are the major things to look out for?

You need a better accountant!! That is all bread and butter stuff for any decent accountant.

Good grief, I'd change accountants!

I don't have a Ltd co but work for an accountant - he is very specific on his advice to people starting up Ltd companies and guides them through the whole process and answers any queries such as the ones you've got. That's what they're paying him for!

well, sounds like you should maybe switch accountants?
Ours tells us all these things, we're pretty rubbish but he always manages to mop up the mess to do the end-of-year accounts.
Do you have a business savings account? A good start would be to move a third of your profit into that every month (or however often he gets paid). What does your dh do? Is he an IT contractor or something? Or does his work come in bits and pieces?

geekgrrl, DH is a IT contractor and has just started his first contract. so we are in a right mess at the moment.

we are still not sure how much tax will be taken and from what the accounts say it will be around 32% for anything over 38k - is this the case. HELP

i am thinking what value they are adding considering how much they charge.

flashingnose - what the name of the accountant you work for???

teacakes- dh is /was an it contractor i will ask him

I'm a Contractor and I work as a Ltd Company. I earn over the high tax threashold and I pay an Admin company to sort all that out! They tell me each week how much they think I should put aside for the end of year tax return.
I pay myself minimum wage... and the rest is Dividend. Therefore only paying income tax and NI on £200 per week. The rest I pay 19% corporation tax on. Works out much better.

I can tell you in more detail the levels of tax I'm going to be expected to pay as part of the higher tax bracket if it helps?

he may be subject to IR35 so will ahve to take most of the money out as salry and pay tax \and NI, but as LTd Co you also have to pay ERS NI...employers NI...so allow 40%-50% for PAYE.

you also need to leave suffiecnt for ACCOINATANTS AND CORPORAYION TAX soory caps

change accountants to a firm that really understands IR35 as it makes a big diffrenec

laso make sure he has professional indemnity insurance

I've got to comply with IR35. Basically I've got to be not entitled to any of the staff benefits that my client offer... I've got to state I supply my own working tools, I've got different start/finish times and I'm not working at the same site for 2yrs or more. Hey PRESTO!

Toothache pls if you could let me know the details that would be great - can I CAT you?

auntyquated, we are looking at the insurance side as well, but thought we'd better wait until the first salary so it could all come from the business ac.

Do you guys have any tips on life assurance / critical illness / pensions?? There is so much to think about, it is mind boggling.

Thanks for helping it is really appreciated

We have a limited company and DP has been doing some IT contracting on the side. As he does fixed rate contracts we do not have to comply with IR35.

I am at home and do the books for the minimum tax threshold. The rest of the money comes out as dividends to both of us as equal shareholders.

We have an accountant which specialises in contractors and charges a flat rate monthly fee.

PS: Don't forget VAT - you can voluntarily register for VAT even if you are under the VAT ceiling. If you are buying IT equipment worth it, also of course that is a valid expense of the company.

make sure that you use a Chartered Accountant.

Anyone can grab themselves a caluculater and set themselves up as an Accountant, but a Chartered Accountant has been trained and must adhere to strict code of conduct.

Teacakes - Email me on [email protected]

My CAT credentials aren't right at the mo!