Limited Company Considerations

• Employees of managed service companies are now going to be charged full PAYE tax rates
• Therefore to meet IR35 guidelines and still benefit from reducing your tax paid as a company you will need to set up a Director based Ltd Company.
• You will need to register your director based company at Companies House www.companieshouse.gov.uk
• You can use an online company like Companies Made Simple to register your company at Companies House for £25 www.companiesmadesimple.com
• To be considered the Director of a Ltd Company you will need to set up a business bank account. HSBC, Barclays and Lloyds are the major banks to do this through.
• This bank account must be on shore for recruitment agencies to be able to pay you.
• MWA have a corporate relationship with Lloyds Tsb and can arrange for you to meet a senior consultant at the Lloyds Tsb Covent Garden branch to open a business bank account. NB Lloyds business bank accounts have no fees for the first 18 months www.lloydstsbbusiness.com
• As the Director of a Limited Company you are not covered by any of our insurance policies therefore all of our limited company temps must have employers liability insurance. Although this is not a legal requirement we should advise that without it you could find yourself personally liable for any claims made against your company.
• To meet the new legislation guidelines you must be seen as the Director of your company. This means that you can no longer use a Limited Company supplier to run your company, you must treat any Limited Company service provider as the accountants of your business that you are the Director of.
• Thus Limited company service providers must now charge up front set up fees and then fees for accounting services i.e. Company Compliance, VAT registration, Year End compliance and Company Accounts. They are no longer able to charge a percentage of your salary to cover their costs.
• It is worth noting that you may wish to submit your own year-end tax returns to reduce your costs. Please seek good advice from an independent financial advisor if you wish to do this or go to www.hmrc.gov.uk Sable Wealth specialise in expat wealth solutions and as Chartered Independent Financial Advisors are able to examine your situation and determine with you if it would benefit you financially to be set up as a Limited Company. They are also able to offer advice on how to structure your Limited Company; Tel +44 7768 022 818, www.sablewealth.com
• As a Limited Company Director you are able to apply for a flat rate VAT status which is 12% and charge your client for your hours plus full rate VAT which is 17.5% giving you an extra 5.5% in your pocket.
• You are also able to claim deductions for your travel expenses, mobile phone, laptop and a daily subsistence allowance.
• Thus if you will be opening a mobile phone contract take this out in your business name to deduct the full cost of this or keep your top up receipts. Also keep all of your travel card receipts and make sure that they correlate to an Oyster card in your name. As well as all lunch food receipts up to £9.50 per day.
• Discuss with the service provider performing the accounts for your company when you will be able to submit these receipts as tax deductions or speak with an independent financial advisor to ascertain how you can submit this yourself.

Contact telephone numbers can be found on all of the sites listed above.