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Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Mon Mar 30, 15 10:25 am Post subject:
But am I missing something? Bit of a difference between £300 and online application £15. What exactly is the difference? Surely its the same thing? I did ask him what I would get for the fee, and he mentioned registration, and sorting out a bank account. Surely I can just sort a bank account at the bank?

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Mon Mar 30, 15 10:29 am Post subject:
Solicitor's time, and, I imagine, their liability insurance to make sure it's all done properly.

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Mon Mar 30, 15 10:31 am Post subject:
Just spoken to a guy at Business support on the .gov.uk pages on setting up a business. Apparently this is the normal fee for an accountant to do this (I should have been an accountant obviously). So he said just fill in the online application and contact HMRC to let them know of the change.

wellington womble

Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands

Posted: Mon Mar 30, 15 12:07 pm Post subject:

Falstaff wrote:

Taxation as "dividend" can save few quid - but Corporation tax does start with the first pound of profit - there are NO "Personal Allowances" and you HAVE to pay yourself as an employee as well !

But you can pay yourself just the personal allowance, which is untaxed by the company as it's an expense and untaxed for you, then take rest as dividend taxed at 10 percent instead of 20 or 40.

Are allowable expenses different for limited companies? Surely a sole trader should also be able to take of expenses before profit? I am.

A limited company will also allow you set up a pension scheme controlled entirely by you. You can decide where to invest and it can also loan up to 50 percent of the fund to you, at market rates. If you have pension schemes already, you may be able to transfer them and access some of the money for the business (if this is wise or desirable).

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Mon Mar 30, 15 12:33 pm Post subject:
My situation is complex as I already get a pension and also have a PAYE job. There are reasons why limited is the way forward now. I just dont want to pay £300 for something I can do myself. Ive just made an appointment at the bank to open a new business account and am waiting for my dodgy accountant cousin to phone me with advice (not my actual accountant you understand).

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Mon Mar 30, 15 1:25 pm Post subject:

wow, this really is confusing..

Ive found this site/page online...https://startups.co.uk/choosing-a-name-for-your-limited-company/
where you can literally form a company online for either £20, £30 or £40 plus vat. Which would you choose (if any)?

Professional - Ltd Company Formation Package
3 hour online formation
Full trading ltd company - limited by shares
Digital documents

Mem & Arts
Certificate of Incorporation
Share certificates
Printed Certificate of Incorporation
Bound Memorandum & Articles
Company Register (unbranded)
Registered Office (optional)
Online access to Admin portal / Co Sec system

To add a HSBC Business Bank Account - see bottom of page. £39.99 + VAT

Executive - Ltd Company Formation Package
3 hour online formation
Full trading ltd company - limited by shares
Digital documents

Mem & Arts
Certificate of Incorporation
Share certificates
Printed Certificate of Incorporation
Bound Memorandum & Articles
Online access to Admin portal / Co Sec system

To add a HSBC Business Bank Account - see bottom of page. £29.99 + VAT

Starter - Ltd Company Formation Package
3 hour online formation
Full trading ltd company - limited by shares
Digital documents

Mem & Arts
Certificate of Incorporation
Share certificates
Printed Certificate of Incorporation
Online access to Admin portal / Co Sec system

To add a HSBC Business Bank Account - see bottom of page. £19.99 + VAT

wellington womble

Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands

Posted: Mon Mar 30, 15 1:27 pm Post subject:
I'd be very interested to hear what he says.

vegplot

Joined: 19 Apr 2007
Posts: 21301
Location: Bethesda, Gwynedd

Posted: Mon Mar 30, 15 2:09 pm Post subject:
I'd do it myself via Companies House. https://ewf.companieshouse.gov.uk//runpage?page=welcome

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Mon Mar 30, 15 2:42 pm Post subject:

Ive just spoken to a very nice Welsh lady at Companies House.

basically its an online registration. She CANT give advice (but her tone of voice changed a lot when trying to spell things out to me without advising me...
So when I asked - " so, it says I need to give details of the shareholders and the share capital what does that mean?"
she said Are you going to be the only shareholder?"
me - "er....yes?"
"Then you have to decide what you want your share capital to be - what the share is worth - the liability"
me - " well, whats the usual thing?"
"I cant advise you that, BUT YOU COULD MAKE IT FOR AS LITTLE AS £1"
Me-"Does that mean my business is worth £1 then?"
Her - "No, its what the liability is. If your business goes down then you as the only shareholder is liable for £1"
Me - "so, Im not giving the share amount as what I value the business at?"
her - "I cant advise you that, But you can always issue MORE shares when your business becomes more profitable"

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Mon Mar 30, 15 2:43 pm Post subject:
So, yes, Im going for online reg as a private limited company with shares. There will be one share and I think I have to make it £1. Is this a correct interpretation? Or should I ask my helpful, very rich accountants?

vegplot

Joined: 19 Apr 2007
Posts: 21301
Location: Bethesda, Gwynedd

Posted: Mon Mar 30, 15 2:50 pm Post subject:
We did 100 shares @£1 each split between two directors equally.

wellington womble

Joined: 08 Nov 2004
Posts: 15051
Location: East Midlands

Posted: Mon Mar 30, 15 11:54 pm Post subject:
If you did it now, would that mean you need to get your accounts done for this year, despite being a ltd for only a few days of it? Or would it be worth waiting a week? Edit - ignore me. You said you already had them done anyway.

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Tue Mar 31, 15 7:08 am Post subject:
The accountant said it didnt matter when I started. Having slept on it overnight, Ive started to have creeping doubts... Am I kidding myself? Do I need the hassle? And then the contrary - Its no more hassle than now - just different. Good opportunity to formalise the business and get it profitable. Sleepless night, and off for a whole day of maths at Penzance...groan.

vegplot

Joined: 19 Apr 2007
Posts: 21301
Location: Bethesda, Gwynedd

Posted: Tue Mar 31, 15 7:34 am Post subject:

Lorrainelovesplants wrote:

And then the contrary - Its no more hassle than now - just different.

It's better not just different.

Mistress Rose

Joined: 21 Jul 2011
Posts: 15952

Posted: Tue Mar 31, 15 7:36 am Post subject:

As there are three shareholders in our company; husband, son and me, we each have one share at £1. Our accountant set it all up for us at the beginning, including a name of our choice, and hasn't suggested that we increase the shareholding at all. I would speak to your cousin, but don't lose sleep over it. If you don't feel up to the hassle now, you could look at it again in a couple of months having discussed it with various people and got the information together.

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