contract work / registered business

[arby]

Can anyone give me some advice.

I've been offered a temporary job on a short term 4 month contract, but apparently I need to register and set myself up as registered business first?

It pays £300 a day, but are there any set up costs how much of that £300 will I see?

[Billybigbollox]

£300 a day ?
Fucking hell some employers take the piss nowadays.

[arby]

Oct 1, 2014 18:37:56 GMT Billybigbollox said:

£300 a day ?
Fucking hell some employers take the piss nowadays.

Haha I know I thought they were taking the piss, but it's barclays so that explains it

[Meggsy]

www.gov.uk/set-up-business-uk/register-your-business-in-the-uk

[harryburrows]

you can buy a ltd company off the shelf for not much money

[sorethumbs]

When you say 'registered business' do you mean as a Ltd company or would just being a sole trader suffice for this temporary employment?

Sent from my GT-I9195 using proboards

[milfman1]

Set yourself up as a limited company

an Accountant will advise you on how to go about setting up a limited company and it is really easy and cheap to do. Then you pay yourself a minimum wage through your company and receive a dividend at the end of the tax year to keep your tax costs down

You will need to probably get public liability insurance which is again is cheap and easy to sort out after getting advise from your accountant

[arby]

Thanks milfman1

[mcf]

Oct 3, 2014 9:08:41 GMT arby said:

Thanks milfman1

...but just be aware that if you do then Lukey boy will be absolutely livid with you.

[followyoudown]

Oct 3, 2014 4:47:51 GMT milfman1 said:

Set yourself up as a limited company

an Accountant will advise you on how to go about setting up a limited company and it is really easy and cheap to do. Then you pay yourself a minimum wage through your company and receive a dividend at the end of the tax year to keep your tax costs down

You will need to probably get public liability insurance which is again is cheap and easy to sort out after getting advise from your accountant

To add to this you can get your own insurance I use a company called QDOS. The tax situation isn't quite as simple as that, the dividend route would only be applicable if you are deemed outside of IR35 best to get tax advice and tax insurance if you go down that route otherwise you might end up with a nasty surprise if the taxman looks at your arrangements and he deems you inside IR35.

You can also pay yourself interim dividends and don't need to wait for the year end.

You can just google buy limited company and there are plenty of places that will register / set them up including a company bank account which is essential.

As an accountant I'd advise you if you can spare probably an hour or so a month to keep your own accounts / file your own returns as you'll otherwise be charged £100-£150 a month for something an office junior will be doing in minutes.

Once you have a company number and name register with the government gateway and they send you reminders on when returns like corporation tax , VAT, PAYE are due. You can download free software from the HMRC to submit your payroll details everytime you are paid a salary.

Recommend you register for the flat rate VAT scheme depending on your rates and what you are working in it can be worth £2,000-£4,000 a year for filling four quarterly VAT returns which again take less than 5 minutes each to do.

On a £300 day rate and going down the dividend route and paying minimum wage you would be looking at taking out around £1,220 (approx £1,010 as dividend and £210 as salary) of the £1,500 weekly wage but you would then be liable for tax on the dividends when you fill in your self assessment returns. The tax on dividends is 10% on the first £31,865 and then 32.5% on anything to £150,000 and 37.5% on anything above that.

Again if you google contractor calculator you can put your own details in and come up with a more accurate figure, if you put your contact details in some of them you will also get companies who will call you who will run it all for you if you don't fancy having a go yourself.

[kidcrewbob]

.....lot depends on whether you envisage being a contractor long term - if not, the agency that you must have dealt with should offer umbrella terms where you effectively go onto their payroll as a regular employee and they look after everything - invoicing, PAYE, NI etc as per a regular job. Not as tax effecient but a zero hassle option........

If you intend to make a career out of contracting then Ltd company off the shelf is deffo the way to go AND GET A GOOD ACCOUNTANT !!!!! Nothing worse than having to deal with the IR HM C&E direct......

[flea79]

i work in commercial insurance broking and see this more and more to the point its becoming the norm

its just a way of shifting liability in the event of an incident, as they will treat you as a bona fide subcontractor, you become responsible for your own potential issues, also the company at the top gets a cheaper premium as they only take what is classed as a contingency cover for you and are not legally required to take employers liability for you which is getting more and more expensive these days.

i also recommend as well as public liability to take your own personal accident cover out