starting an ltd company - tax??

[jaabaar]

Hi,

Me and 3 others are planning to start company in January.
If I work and pay tax as a pay as you go and I am one of the directors of the company do I need to fill out a self assesment form even if I do not take an income?

This is the only reason i shy away from having started this company.....

Thanks for any input on this highly boring subject....

J.

If you are going to be LTD you will need an accountant who will of course be able to advise on this as well.

Essentially it is the same as working for any other company on P.A.Y.E, you pay the wages through paye from your company to you.

Have you got an accountant yet? I found an accountant before I set up the company, mine was a great source of info and advice. He even helped with the business plan.

Yes, as a director you need to complete a self assessment return. As an employer you need s PAYE scheme. As a company you need to register for corporation tax. As a shareholder you may wish to pay dividends and pay yourself a small salary for a tax efficient solution. Do talk to an accountant.

Yes, we have to complete self assessment. As said above, you will need an accountant - you can either find one before or after, we did so before as ours was extremely good when it came to helping us actually set it up. However, once you set up your company through companies house, you will find quite a few local leaflets through your door from local accountants offering great deals for your first year!

We were told we didn't need to register as employees because we were just taking dividends, but we did anyway to have the PAYE set up because it can be useful when it comes to your accountant helping with the tax. Also remember you will have to pay 20% corporation tax and register the business with HMRC for this.

Definitely echo what the others have said, go to an accountant and they can help you - they will also give you their email address so you can ask questions as and when you need to.

Good luck!!!

Oh god, was just going on this topic, didn't realise it was an old one, sorry!

You should be able to get the accountant (which you will have to have if you start a ltd) to do your self assessment for you.

how do you find a good accountant?

shouldIbecrossaboutthis - we found ours through a recommendation from a friend/someone in the same line of work we'd previously worked with. generally i think thats the best way because then you know they know the sort of business/allowances etc and know that they are good from a real person!

it might take a few tries if you don't know anyone you can ask / don't know anyone in the same sort of industry - we went to one accountant first who didn't have a clue about our industry/work as its a bit niche and didn't go back after our consultation because they wouldn't know the main ins and outs/how the incoming and outgoing money/system works.

You can call and ask for a consultation chat with local accountants and they are usually extremely happy to accommodate you - it may be worth asking them if your business is in a sort of niche area if they have clients with similar systems that you would need!

definitely try to get a recommendation though!