Using a Limited Company

1. Bank account - you will need a business bank account. If you have bank account details then please enter them in the "business section".

2. VAT registration - you may need to be VAT registered and there are various schemes and methods for accounting for VAT.

If you are VAT registered then enter your company's VAT registration details in the "business" section. You can also "upload" a copy of your VAT registration certificate - select the "certificates" page from the business section.

More guidance in respect of VAT can be found here.

3. Registered office address - you will need one of these. This will normally be your home address. Please ensure that the registered office address entered in the "business section" is correct.

You don't have to use your home address as your registered office address. You can use our office address if you wish for a reasonable fee

4. Paying yourself (and - if applicable - your partner):

We recommend a low salary (payable annually in arrears in March) and Dividends.

If at the end of the year it is decided that you are failing IR35 then there will be a Deemed Schedule E calculation that will calculate your NI/tax liability. If you think that this is going to be the case then you will need to retain 40% of your gross fees to cover NI/tax.

If you feel that you pass IR35 then you should still retain 40% of your gross fees to cover NI/tax that may be payable in the event of a successful challenge by HMRC.

More guidance about running payroll is provided here.

5. Paying expenses.

Only expenses that are incurred "wholly and exclusively for the purposes of the trade, profession or vocation" may be claimed by your business.

More guidance in respect of some common expenses can be found here.

6. Paying dividends - it is likely that your business will pay dividends

More guidance in respect of dividends can be found here.

7. Paying corporation tax - your company will need to submit a corporation tax return ("CT600") each year.

This involves the preparation of the tax return and the calculation and payment of the corporation tax. More guidance in respect of corporation tax can be found here.

8. Submitting annual accounts - your company will need to submit accounts ("financial statements") to Companies House each year.

These will generally be submitted as "abbreviated financial statements". More guidance in respect of corporation tax can be found here.

8. Insurance - by law you are required to have employers liability insurance (in practice many single operator companies do not take out this cover because you as the employee would be claiming against yourself i.e. your company - nevertheless it is still a legal requirement). You can organise this via The other common insurance covers such as Public Liability and Professional Indemnity are optional.

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