don’t all SHOUT told yu so but i’ve done away with nova as they are no longer viable & made myself a ltd company. went to see accountant last saturday & did not realise how easy it was. all i can say is i wish i had done it 2 years ago & saved myself about £2000 nova fee’s.
good luck 
Same here…
Set up last week,
lose out on holiday pay, but at end of day hope to pay lot less tax
Tax avoidance= legal
Tax evasion= illegal
164480:
don’t all SHOUT told yu so but i’ve done away with nova as they are no longer viable & made myself a ltd company. went to see accountant last saturday & did not realise how easy it was. all i can say is i wish i had done it 2 years ago & saved myself about £2000 nova fee’s.
And people said I was talking out of my backside…
Glad you’ve seen the light. Keep a decent tidy set of books and it’ll save you a lot of money at the year end when you send them off to the accountant.
Also, put away money in a ISA to cover tax/NI. Because it earns interest tax free, it’s like getting a discount off your tax bill. Also means you’re not panicking on January 30th realising you’ve £2000 to find in 24hrs.
wondered when you would appear conor, i never said your talkin out of your backside conor i just thought it was a lot of hassle & paperwork but after talkin to accountant it’s so simple he’s charging £250 a year alot less than nova,i should av listened to you before,never mind i’ve done it now infact 3 of us all went limited at same time so nova are £3000 a year down allready.
Small correction there…to Conor…talking to my accountant…this week…
NI…you won’t pay…so long as your directors wages is £435 a month…(dividends…is where you get to your money)…this is just the way it works… totally legal with no comebacks…
You must though keep any money in the business name…unless you’ve drawn it out properly for yourself…i.e dividends…wages…claims etc…In other words you can’t just take a large sum out and just put it back in later…
What you have to do is setup a business savings account in the company name…this will pay a higher interest rate than the normal business current account…(where your agency pays wages into each week)…
Very much doubt ISA’s do that…correct me if i’m wrong…but make sure you check with your accountant first.
Remember though…be wise and look after your money with care…if you don’t need it…leave it…and even if you do need it…leave it…
What the taxman doesn’t want…is always yours for later…rather than him wanting and you ain’t got…ooooooooooooohhhhhhhhhhh
Actually you need to pay NI, even if it’s just Class 2, otherwise you lose entitlement to benefits and state pension.
Apart from that, Supersmiley is right, especially with the part about making your money last and not seeing that £2k invoice that’s just been paid as an opportunity to go buy a new telly.
I don’t know about the ISA fingie … wifey just cashed one in this morning. She had 6k in one for three years and earned 800 interest. Not a lot for the amount invested.
SuperSmiley:
Small correction there…to Conor…talking to my accountant…this week…NI…you won’t pay…so long as your directors wages is £435 a month…(dividends…is where you get to your money)…this is just the way it works… totally legal with no comebacks…
You must though keep any money in the business name…unless you’ve drawn it out properly for yourself…i.e dividends…wages…claims etc…In other words you can’t just take a large sum out and just put it back in later…
What you have to do is setup a business savings account in the company name…this will pay a higher interest rate than the normal business current account…(where your agency pays wages into each week)…Very much doubt ISA’s do that…correct me if i’m wrong…but make sure you check with your accountant first.
Remember though…be wise and look after your money with care…if you don’t need it…leave it…and even if you do need it…leave it…
What the taxman doesn’t want…is always yours for later…rather than him wanting and you ain’t got…ooooooooooooohhhhhhhhhhh
been self employed 25 years and have never once had my bank account checked by the taxman!
only advice i’d give is never on any circumstances except any figures that come out of the tax office as correct, they make so many obviouse mistakes it makes you wonder how some ever got the job in the first place? for 05-06 i had four different tax caculations before they eventually hit on the right amount due, and this is for a one man band setup!
we’re now in a running battle over interest charged on money owed which in fact as it turns out i didn’t owe but these people want me to pay for their mistakes and basic acounting errors.
not in this lifetime!
Conor:
Actually you need to pay NI, even if it’s just Class 2, otherwise you lose entitlement to benefits and state pension.Apart from that, Supersmiley is right, especially with the part about making your money last and not seeing that £2k invoice that’s just been paid as an opportunity to go buy a new telly.
You may be right
Getting a bit confusing this one as some people are talking about ltd. companies and some people are talking about self employed which are 2 completely different things.
If you are a ltd. company you dont need to put anything away as such as you will pay tax and NI each week/month. You will need to keep some back for corporation tax though. If you are taking the minimum and paying a dividend then remember you have to pay an equal dividend to each shareholder so if your wife is an equal shareholder you have to pay her the same dividend as you.
£250 seems very cheap for ltd. company accounts. Nearer £1200-£1500 seems more like it. Dont forget you have to pay companies house something like £100 a year just to keep registered.
Keep the business and private money totally seperate. The accountant has to balance the books at the end of the year and if you keep taking money out willy nilly for both company and private use then they have to work it all out and that costs money.
I have been self employed and had my own company. It used to be a good thing having your own company as corporation tax was not paid until you had over £10,000 profit so even with the extra costs of accountants/companies house it was worth it. I believe the government have stopped this benefit now so I am not sure if it is worth going along the ltd. company route with all the expense and paperwork involved.
TheBear:
I don’t know about the ISA fingie … wifey just cashed one in this morning. She had 6k in one for three years and earned 800 interest. Not a lot for the amount invested.
She needs to find a better one. Mine would have returned over £1000.
bristolron:
£250 seems very cheap for ltd. company accounts. Nearer £1200-£1500 seems more like it.
You’ve been robbed.
Conor:
bristolron:
£250 seems very cheap for ltd. company accounts. Nearer £1200-£1500 seems more like it.You’ve been robbed.
been advised (Courtesy of MSE) to look at £50 to £75 a month)
Mine is £600 all in… so far good advice from him
robbed at £250 for year you must get yours done for nowt.
164480:
robbed at £250 for year you must get yours done for nowt.
I think he was refering to £1200-1500
I was.
Still, if you think paying someone the equivalent of £30 a week to look over books that’ll be lucky to have a dozen entries a month in and say “Yup - it’s added up OK” is good value then it’s up to you - it’s not my money being wasted so that suits me OK. 