Posted By Andy Brazier
Which ever way you go, make sure you have adequate insurance. Whilst Ltd status provide some protection for you if the business has financial problems it probably won't if someone makes a claim because of advice or a service provided.

As for tax implications, obviously you will be better speaking to an accountant.

Posted By William
I think that the Ltd/composite company status will change in April and you must now work through a company who will do you wages for you and charge you around £20 per week, I do know that the Inland Revenue has made the passing of self employment tests a condition of being able to be considered eligible to receive the dividends.

I did this last year and to be honest I wont be using the company or agency I used again as they have just hit me with bills for £475 and £367 for what they claim to be overpayment's for mistakes they made and ignored when I flagged it up to them 6 months ago.

So when you consider all the hassle I had with time sheets and other paperwork and the complete mess the company involved made of things, I would be inclined to go the sole trader route in the future if I could. As what is the point of paying money to a company who will mess things up and get the benefit of you paying them to do your wages and also make interest off your tax?