Limited Company for Contractors can be a Positive Move!
Being a director of a company can be very stressful as well as very interesting. They can be enjoying their hefty incomes and profits being a director or a shareholder of a limited company. But setting up and running a company at the same time can make a person very stressful and burdened in related to tax and rapport. A director is able to set up a specific amount as a salary for himself and some dividends as well. This way they can save the company from excessive tax money. A shareholder and the director can be one person and earn the shares and the salary both at the same time. The limited company’s assets are completely secured because any of the owners of the company cannot be liable for any asset of the company.
Accountants in Croydon are significantly popular for teaching the people about the actual cost of setting up a limited company which can be free of charge as well.
Setting Up a Company
To start a company formation in UK you must register it in the company house to proceed further. Name of the company is the first thing to be chosen and registering, it is the best thing you do as soon as possible. This recommended that you should not copy the name of any other company before registering it. You will need a true address to register with your company accounts. If you have hired a sole trader accountant in London, you can use his address as your company accounts or you can use your own. But having a P.O Box is compulsory for a company.
A company must have a director and a shareholder and both can be one person. You can find all the detailed information about incorporation on the UK government website. The minimum amount for company formations is £15 and the maximum will be £40. If you want to hire an accountant for documentation then you can have it.
After setting up a Limited company for contractors, you will have a three months’ time period to apply for annual tax registration. The company’s taxation profile will be registered based on a UTR number that can be obtained by the HMRC website. There will be a deadline for your company to pay an annual tax. The deadline will be given by HMRC. The next important thing is to register for VAT. The maximum threshold for the annual turn over is £85,000 per year. Exceeded from this, you will have to pay VAT as well. To keep all the records, you can avail various bookkeeping services in London.
Opening Company’s Bank Account
The next important step is to open a company’s bank account which you can open after registering for the company’s name and tax profile. Banks will need original documents of the company and a brilliant business plan. You will have to take care of these things. You can use your bookkeeping records for future bank reference. Some banks don’t charge the account opening fee for some new customers but to find that you qualify for this, you will have to look for them first.