Self Employed or a Limited Company??

[Xena]

I'm a registered childminder who has a good income in Sept I am going to take on an assistant so that I can look after my sisters 2DC'c when she is at college. Then in November I am going to go on Maternity leave and the assistant (who is a registered childminder) will take over fulltime (this is all within the allowed numbers) The childminding will be making more money than I will be paying this assistant but I will not be able to take this money as I will be on Maternity pay ?? So do I make myself a ltd company or do I forfit the maternity pay about £2600 and take the rest of the money from the childminding?

I'm not an expert so I think you should take some proper advice on this.

However, to be a limited company you need another director.

You may find that as long as you are not actually working you can get the rest of the pay but check this. The rules state you can't work and claim SMP or MA but that doesn't stop companies paying employees enhanced maternity pay whilst they are on leave. Check out how this works out with self employed.

You'll need to get proper advice on this, I agree, although if you're a ltd company I think you should be able to draw the money as enhanced maternity pay (it is up to individual companies what they offer employees as far as this is concerned), although obviously SMP has to stop when you start working. Not sure how this works if you're self-employed, surely the money just goes into the business and as such belongs to you anyway?

What I would say is that a ltd company involves extra paperwork and more official responsibilities, which although not massively complicated if your business is straightforward, is time-consuming. Tax is also more complicated as it's not as simple as putting it all on a personal tax return. If you're just thinking of it to get round this one issue, I would steer clear tbh (am company secretary for my dh and it makes me want to tear my hair out...)