I'm scared! Should I be?! Sole trader to LLP

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I have changed business entity from sole trader to a LLP. I've voluntary registered for VAT (waiting for response from HMRC). I'll register the company as an employer tomorrow - then I think I just have to register for PAYE. I'll be the sole employee for a few months at least.

But I've been reading around on PAYE etc and I'm becoming a little bit panicky about the paperwork involved! And penalties for late payments to HMRC freaked me out abuit. If I restrict my salary to the personal allowance and pay the odd dividend should it be complicated for me?

I have an accountant who will do the tax returns for the company in due course - the plan is I'll keep on top of the paperwork, pay my salary etc.

I have a 7wk old and am doing a tiny bit of work but worried that being a director/employee as well as a mum (of 4 now), building up my work again and 'running a company' will be worse than being a sole trader - administrative speaking (I converted to LLP for the financial benefits).

Any advice to put my mind at rest would be appreciated! Thanks.

Talkinpeace2 awaiting your response in particular! ;-)

You could get the accountant to do the PAYE. Or buy a basic payroll package for around £100. NOt sure why you would be on PAYE in an LLP though - I always thought they were taxed like partnerships.

Do you mean Limited Liability Partnership or Limited Company? LLP seems a bit more than you'd need to be working for yourself tbh.
Anyway the PAYE isn't that bad- if you're taking more than personal allowance and/or take on staff then look at Moneysoft payroll software (around £130 a year) which is really straightforward. Just add the payment dates to your work diary/ set up a DD for the filing and payments.

Also re VAT , look into the Flat Rate scheme, the revenue website has a calculator which shows if you'd be better off using that scheme (which is much easier to administer)

An LLP won't save you any tax, and is more complicated than a limited company to do accounts for, so like the others I really hope you mean a Limited Company.

Most accountants would include running a directors payroll within their fee for a small limited company.

Why have you registered for VAT? Are the majority of your customers businesses who can recover VAT (not charities or banks)? Are you providing a service or selling a product, or a mixture of both?

If you do want payroll software, I'd agree with Moneysoft although the single company version only costs £55 a year!

i was tired! I did mean limited company not LLP, dopey me. Does that change any of your advice?

No, I assumed that anyway I remember now from old threads that you have only clients that can recover VAT so voluntary registration and the flat rate scheme is the way to go.

If I was your accountant I wouldn't offer you any saving for not doing your payroll, in fact I'd probably charge you more for the hassle of making sure the right payroll information got into the accounts! If you are going to have other employees though there might be an extra charge so I'd either go with Moneysoft or the online service MyPAYE which is only £1 a month per employee.

mranchovy that is correct! I've now registered with HMRC as I will have to register for PAYE looking at the requirements. I've also applied for VAT registration and it will definitely be cost effective to opt for the flat rate scheme - just hope the admin side isn't a burden although a friend who is in the flat rate scheme says not

To start off, I'll be the only employee although I may have to subcontract (any thing to be advised of there?!) and I'll be taking another director on within a year probably, who will also be paid.

Just hope I don't regret any of this! The advantage of having a tiny baby and being on maternity leave for a few weeks means I can try to get completely on top of all this before I start work again....