self employed/ltd company?

[1dilemma]

Does anyone know where I can get some basic info/guidelines? Need to know whether this would mean we would pay less tax.
Thanks

HMRC website on being self-employed/starting a business

thanks a little light Christmas reading

you should ask someone we know, she and her OH do this...

You may well pay less tax as a limited company, but will be subject to a lot more rules and regulations, and you won't have such ready access to your money at whatever time you want it.

What sort of work will you be doing?

TB eh? give me a clue please.
CSWS don't want to say on here but this would be small amounts of my main jo for different or the same employers does that make sense?

Limited means you wont be risking your home etc. if your company goes bust (unless you re-mortgage it), but it is harder to get finance etc. as the bank would rather have something substantial such as your house if you default.

Her DC1 has the same name as your DC1 although there are 2 years between them
If you still can't guess email me!

You won't pay less tax, in that if you are SE your tax code remains the same, but depending on the type of company you run, more costs can be absorbed into the business - however anything you save will most likely be reflected in your accountant's bill, unless you do it yourself! It's a double edged sword; either you gain the knowledge yourself and save the £££s or pay someone to tell you how best to minimise your tax liability..

You will have more disposable income as a Ltd company but will definitely need to pay someone to do your accounts (unless you have the necessary knowledge).

There are pro's and cons to both and it is simply not possible to generalise: you need to speak to an accountant for advice and set out your expected earnings, any financial risks involved (eg if you give advice there is a risk of being sued if advice is wrong - very important in determining ltd co vs sole trader). also take along details of all your household bills as some of these can be offset. There are also things like bank charges and so on to consider.

Seek advice, don't just 'wing it' on this one. A good accountant will probably charge you for an hour of his time for this - or your local bank may offer some advice for free if they have small business managers at your branch.

Thanks TB I thought it might be her. (kind of not unusual in that field I think)

Am I wrong in thinking that I could pay myself in dividends which are taxed at ?19%?

get some professional advice - tbh any decent accountant would have an initial meeting with you free of charge, and would tell you whether it was a good idea.

not sure if you are saying that that this is an employment that you want to put into a company - if so then there are rules to stop tha (although they can be got round to an extent).

dividends are not taked a 19%, if you are not a higher rate tax payer they have no further tax to pay on them, if you are higher rate they are a further 25% of the amount you take. BUT this is out of taxed income - small companies are now taxed at 20%.

suggest you contact your local business link www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805&r.s=tl

as they will offer free courses and advice. an accountant will give you a free meeting but will want to take on your accounts at at least £100 per month which is a big cost if you are a start up. you can do books yourself, which you need to understand anyway to run your cashflow and business. hope it helps!