Onwards and upwards.....

[Tony Croft aka hamadryad]

onwards and upwards, I can relate to that man, good luck in your change of direction, fair play, in much the same frame of mind myself.

 

 

all the best.

[Pedroski]

What,s the benefit of been registered with companies house and been LTD?

 

There're a few benefits:

 

> credibility/image which is pretty important - a lot of larger companies will ONLY deal with a proper limited company and won't deal with sole traders/partnerships

 

> company name is protected by law so nobody can use the same or anything too similar

 

> I can draw a small wage, and pay other directors a small wage, so we don't pay much in personal tax/NIC and we can then pay out a nice dividend which is taxed at a lower rate (assuming of course I manage to make any profit)

 

> company will have to pay corporation tax and deal with PAYE etc, but I'll have all that done the accountant. At the moment as a self-employed sole trader I do this all myself on-line so that'll be one less thing to worry about

 

> massive advantage is that if it all goes boobies up at some point then I won't lose my house over it as the company is dealt with as an entity in its own right. I won't be personally liable for any losses the company makes.

 

> pension contributions can be put down as legitimate business expenses, thereby reducing taxable profit and hence reducing corporation tax payment

 

> I can issue shares in the company

 

 

It was a no-brainer for me really. The total cost to incorporate the company with Companies House was...... wait for it............ £18! I've just blown double that on domain name registration for rootsenvironmental.co.uk and rootsenvironmental.com.

 

Interesting reading here Limited company advantages – an overview. Well, it's all I've written above

[renewablejohn]

Nice to have a rosie picture of Ltd company benefits but in reality its not always that easy. You still might lose your house as lenders are very wary of lending to new companies and normally insist on personal guarantees from the directors. If you accept the loan and the guarantee then Ltd liability is meaningless. Also make sure everything is filed on time and dont rely on your accountant especially with companies house and HMRC as its your responsibility. My first chartered accountant cost me £100 fine with Companies House and £400 with HMRC. I promptly changed to another chartered accountant only for him to miss the accounts filing date and another penalty of £500. Hope you have more luck.

[NFG]

Hi,

 

Good luck with your new venture,

 

Just be extremely careful when dealing with Companies House, they issue fines like confetti.

[born2trot]

I'll buy some of your shares Pedro Good luck

[Pedroski]

Nice to have a rosie picture of Ltd company benefits but in reality its not always that easy. You still might lose your house as lenders are very wary of lending to new companies and normally insist on personal guarantees from the directors. If you accept the loan and the guarantee then Ltd liability is meaningless. Also make sure everything is filed on time and dont rely on your accountant especially with companies house and HMRC as its your responsibility. My first chartered accountant cost me £100 fine with Companies House and £400 with HMRC. I promptly changed to another chartered accountant only for him to miss the accounts filing date and another penalty of £500. Hope you have more luck.

 

 

I appreciate the warning, and it's all stuff I have considered. Work mate owns a limited company and I've had a lot of experience of the pitfalls and the benefits. I've also had a lot of dealing with HMRC so know what can happen there, but I do have a reliable accountant who was recommended to me so feeling ok about it all.

[Tony Croft aka hamadryad]

I was a Ltd company, had a good accountant and never had a problem.

[GardenKit]

I was a Ltd company, had a good accountant and never had a problem.

Exactly. If you run your business properly, with a good accountant, and dont try to be clever to 'beat the system', you will have no problem at all with Companies House or HMRC.

 

I have a friend who tried to be clever in the IFA business, he expanded very rapidly, took on loads of corporate business and everyone envied him.

He bought the Beemer, moved to a larger house, took the holidays etc, all on money drawn from the business, whilst the business ran on loans. Within 2 years it was all gone, and even though the company was limited, he was also made bankrupt himself.

 

I have never borrowed a penny to run my business. I set it up from savings and a small redundancy payment and then reinvested profits as and when. I have only ever drawn dividends when there has been sufficient cash in the bank, even if it meant waiting for my money. OK, I will never be rich or flash, but I am comfortable and sleep well.

 

Best of luck with your venture Pedroski, it beats sharpening hedgecutters!

[easy-lift guy]

Sometimes names for products or companies can be difficult at best. I do like and believe your daughter has good taste for naming the new business. All the best.

easy-lift guy