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nav8

locum limited company

11 posts in this topic

Hi

I am in need of this information ASAP please.

Cheers

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I have set one up. The problem is that I am not in the position to recommend it as I have yet to complete a tax return.If it leads to hassle/paying most of saving back/need for an accountant, then it may not be worth setting one up.If despite this you're interested in how I set mine up then send me a message and I ll happily let you know

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:D It is extremely easy to set up a limited company. There is a company in london called 'the contractor company' by registering with them they will set up a limited company in your name, this means you will only be liable to 15% corporate tax. there number is 08456580650. they will be able to send you information.

I have been using them for around a year and it is incredible how much I have saved in tax on my locum work.

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Does setting up limited company only helps in saving tax of people who do locum jobs?

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If you are in a PAYE nhs job you will not be able to use the limited company sytem

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A private limited company is a legal body in its own right. Any money earned by the company belongs to the company. You cannot simply move money between the company's accounts and your bank account as you wish, even if you are a director of the company. Even if the company's tax rate on profits is less than your personal tax rate, the sting is that you will face a tax bill when you want to take your slice of the post tax company profits into your personal bank account.

To take money out of the company, you have to either take a salary or take a dividend payment. Both these routes have tax implications and although the company will pay some of the tax, if you're a higher rate tax payer you will have to make up any shortfall in tax owed to the Inland Revenue. In the end you'll most likely end up paying the same amount of income tax as you would have done earning outside of the limited company. Any money left within the business accounts can only be used to pay for business purchases; you'll find it hard to convince an accountant to sign off your accounts if you're buying 40inch plasma tvs on the business account!

However there are tax advantages in terms of national insurance payments and expense claims but you have to weigh up these benefits versus the costs of setting up the company, paying for accountancy services and if you're doing well, VAT payments.

Although it's easy to set up a company on the net, eg http://www.company-wizard.co.uk, there are legal responsibilites for company directors and secretaries and you can be criminally charged if you don't go about things in the right way. Also remember to set up a separate business bank account to differentiate your personal affairs from the business affairs, otherwise you'll end up with an administrative nightmare should the Inland Revenue or Customs&Excise decide to investigate your affairs.

One more thing - anyone can pay a small fee online to see your Company's accounts, so your earnings will not be private.

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hey babe

havent you heard of google?!!

Just joking..advice straight from horse mouth is good,but limited,go on net and you have a sea of advice/comments/forums

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