Help, starting a job tomorrow and need to declare myself a sole-trader or start a limited co pronto and am clueless!

[monkeypuzzeltree]

Hello, am about to spend what was meant to be a relaxing day after chasing a toddler around trawling the net to get myself set up as self employed. Would be so grateful if anyone can point me in the right direction!

Basically, I am starting on a contract for a firm and they just told me that actually I won't be employed by them, as I had thought, I need to have a limited company or go through an agency that they use for contractors, which is going to charge me a fee to process my tax etc. Not that keen on paying their fees if I can go the limited co. or sole trader route and while I know I'll have to do a tax return, I am happy to do that myself.

So, here comes a fun evening, any tips appreciated! thanks

It's dead easy - you just register as self-employed online, and you get an email back straightaway. They then send you a 10-digit unique code (UTR _ Unique Taxpayer Reference, or something) that you'll need to give the firm to prove that you are self employed. They say this takes 4-6 weeks, but mine hadn't arrived after three months, so I had to get it again. You'll also wait a couple of months to get a NI bill, but it's only a few pounds a week.

BUT there are strict criteria for being self-employed, and one of them is that you have more than one client, and you can pick and choose when you work. Does this sound like you? There is an online questionnaire you can do. I'll look for links for you...

I don't think they'll employ you as a sole trader. So your options are Ltd co or use an umbrella company.

Seeing as you're starting tomorrow, I'd suggest using an umbrella co even for just a few weeks til you can get set up as a ltd co

You can do this online (don't pay the high fees you can do it yourself easily), set yourself up as the md and allocate yourself 100 of the shares

You need to set up a business account and have insurance etc. the site will tell you what you need.

Once the kids are in bed I can find out more details for you

Here's the link to check whether you are self employed and and here's the link to register, if you are

You ladies are fantastic....thank you!

Will be back in a bit but agent there are slightly different rules for contractors. You employ yourself but you can't be a sole trader.

I've just been thro all this myself and opted for an umbrella co as they effectively employ you and sort tax and ni etc.

I wrote this page for ebayers, but all of the principles of taxes and compliance apply to anybody
have a read
cgi3.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=talkinpeace
coffee and highlighters are recommended

Thanks for the link.

The more I read the more confused, I just read this www.businesslink.gov.uk/bdotg/action/detail?itemId=1073789948&r.i=1073789950&r.l1=1073858805&r.l2=1085161962&r.l3=1073875654&r.s=sc&r.t=RESOURCES&type=RESOURCES and i am pretty sure all of that applys to me, I do pr, am being asked to do a project which will take me until the end of the year, a couple of days a week. Although this is my first project, I may yet freelance for other firms.

Am I getting it wrong that I thought I could register as self employed sole trader, invoice the firm, pay my ni and tax through self-assessment.

OK I've found the site where I registered my Ltd Co (it's set up but not trading yet) here they actually do your first minutes etc for you. It's pretty easy.

These are the things that I was asked for by the company I'm contracting for if I'd been self employed:-

Certificate of Incorporation
VAT Certificate (if registered)
Limited Company Details
Employers Liability Insurance (if applicable, if you are the only employee then you are exempt from this legal requirement)
Public Liability Insurance ?£1,000,000 for each claim and £2,000,000 for claims in aggregate
Professional Indemnity Insurance ? ?£1,000,000 for each claim and £2,000,000 for claims in aggregate
Bank Details ? please complete attached form

You'll need a bookkeeper and an accountant

This is why I decided to leave it til I was sure contracting was for me!!

Big companies won't employ you as a contractor as a sole trader. Maybe this is your situation?

As a contractor you have two choices; form your own Ltd Co or go under an umbrella Co.

If you have to go as a Ltd Co contractor
your first call in the morning should be to these people
www.pcg.org.uk/cms/index.php
they will help you out

Gosh, it's much more complicated being a contractor than I suggested upthread. I had no idea... And it was so simple for me to register as self-employed. Good luck, OP!

Maybe I am confusing things by using the word contractor.

Can't I just register myself as self employed and then invoice them?

If they will allow you to work on a self employed basis then its pretty simple.
If they insist on you being a Ltd Co to get around IR35 its not

try to get them to go for the simpler option for the first contract

I don't know if big companies are allowed to employ people directly.
I think most have a preferred company policy etc so they only use employment agencies that take a small % of the persons salary that sort of thing.

When I worked there, we would use freelancers all the time and they invoiced us, so thinking on it, don't see why I can't do that too. Oh well, we shall see, thanks for all your help though, has made me understand things better if it does develop and i go ltd co. route in future. thanks

dolly
companies can do pretty much whatever they like
but they gold plate HMRC rules to avoid fines

Ah I see
Good luck tomorrow in your new job monkey

Problem solved, i am using the umbrella agency, but they are paying for it. Phew, gives me more time to understand the ltd co. route for the future. thanks for your help.

Cool
come over to the UK Business forums for excellent advice
very few posting IDs on there