Starting your own company

[forestboy1978]

It's pretty complicated. I pay around 1k for PL and EL turnover is 85k. I literally stay just under the threshold even if it means not working. That will change possibly  next year. Not sure. Anyway.... 

 

I think you'll find also that sub contractors need to be have their own insurance also to be bona fide subs or you could get up shit creek with the inland rev. Especially if they are working for you job after job. They no longer qualify as subs. I don't fully understand it. 

 

Get ready for stress though lol

 

Good luck. 

 

 

[Squaredy]

6 minutes ago, forestboy1978 said:

I think you'll find also that sub contractors need to be have their own insurance also to be bona fide subs or you could get up shit creek with the inland rev. Especially if they are working for you job after job. They no longer qualify as subs. I don't fully understand it. 

No-one fully understands it, not even accountants and lawyers and HMRC can agree on what the rules mean.  It is a minefield.  Anyone new would be well advised to read up on it - there are threads on Arbtalk that go into it a lot - and it is almost enough to put you off using sub contractors!  And we can't even blame the EU for this complex legislation....all our own home grown pile of nonsense!

[forestboy1978]

12 minutes ago, Squaredy said:

No-one fully understands it, not even accountants and lawyers and HMRC can agree on what the rules mean.  It is a minefield.  Anyone new would be well advised to read up on it - there are threads on Arbtalk that go into it a lot - and it is almost enough to put you off using sub contractors!  And we can't even blame the EU for this complex legislation....all our own home grown pile of nonsense!

I don't see the point in reading up on it. I did, and I still don't understand it. And as you say, neither does my accountant. I just do what I have to do, keep my head down and my nose clean and hope no bureaucratic idiot decides to climb up my ass for some reason or another. Cos "they" can find a reason if they look into absolutely anyone far enough.  

[Rich Rule]

Bona fide sub contractors will require their own PL when doing jobs for you.

 

The problem arises when a freelance worker calls themselves ‘subbies’.  They are not.  A freelance worker or labour only sub contractor will be covered by your PL and El insurance.

 

I was once in a situation as a freelance worker who thought I needed PL insurance...  anyway, the need for a claim came about.  The main contractor tried to claim on my Insurance policy only to be told I was covered under theirs.

 

I quickly called the company and cancelled.  I wasn’t impressed as I had explained exactly the capacity I was working at the time.  3 years at 600quid plus I was charged for absolutely no cover.

 

Simple answer is don’t use the term ‘Subby’ unless you are a Bona fide Subcontractor.  

[Ty Korrigan]

When I talk to others in this industry, often I am told "oh I run my own arb company" or their FB profile states Owner or Director at treecutting company.

To be clear, a company is a legal entity in itself. 

 

A major difference between a limited company and a sole trader is that alimited company is a separate legal entity to its shareholders and directors. ... This creates a clear distinction between your home life and your business, which helps to reduce the financial risk to any individuals involved with the company

 

 

I may be seen here as just being pedantic but claiming you are a company when you are merely a sole trader is indicative either of having Walter Mitty syndrome or having insufficient* understanding of business in the first place. (*does not mean you do not know your job, just that you do not fully understand the terms of 'business')

 

Stuart

 

 

[doobin]

I'm a sole trader and I have three staff. I'd quite happily call myself a company. To my mind this is in keeping with the (presumably) original terminology- 'a company of men'

[forestboy1978]

3 minutes ago, doobin said:

I'm a sole trader and I have three staff. I'd quite happily call myself a company. To my mind this is in keeping with the (presumably) original terminology- 'a company of men'

Yep, you're like 1 days admin and a small amount of time and money meeting bank managers away from being able to stick Ltd after your biz name if you wish it to be. I see no difference other than what clients you might attract from having the ltd being higher commercial percentage perhaps. 

[doobin]

5 minutes ago, forestboy1978 said:

Yep, you're like 1 days admin and a small amount of time and money meeting bank managers away from being able to stick Ltd after your biz name if you wish it to be. I see no difference other than what clients you might attract from having the ltd being higher commercial percentage perhaps. 

To be fair we're probably about 60% commerial if you count some charity type work.

 

I'm sure for LTD you just get the accountant to register you as such? Heck, I still run out of a personal bank account!

Edited December 8, 2018 by doobin

[Chris Day]

It's a good idea to get try and estimate costs. The biggest mistake I have watched and still watch people and friends make is treating the money left after paying staff/subbies and fuel from a job as their own.

 

Expect to pay yourself very little for the first few years, young businesses eat money and you will always need to buy something else. Whilst paying yourself little expect to work long long hours, quotes, paperwork, fixing stuff, organising stuff etc.

 

All that said, I love running my own gig. And I even enjoy it sometimes. 

 

 

Edited December 15, 2018 by Chris Day
Typo

[Dendrologen]

On 25/01/2019 at 13:16, Andrew_Horn said:

I also thought at the time that it was a rather complicated undertaking, but a realizable one. Then he led the calculations and realized that this was not a very profitable idea. Therefore, I considered the option of investing in startups, following the example of Splento (https://www.splento.com/), which interested me with its original organization of a new level of cooperation between photographers and clients.

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