I have my own safety consultancy business which is expanding and I am fully insured, professional indemnity and public liability. I intend to register the company but am not sure about going limited. It appears to bting lots of additionals with it. What do other members do?

SBH

Misunderstanding I think. Do any members go limited company when they have their own consultancy.

SBH

Limited keeps liabilities with the business rather than the individual

https://www.gov.uk/limited-company-formation

As an individual you could end up on the wrong end of a law suit with personal assetts in the baliffs sights

Hi,

Just somethings that I gradually found out when I had a Limited Company:-

With a Limited Company the annual accounting period is from the date that you start it i.e. if you start in October then it is October to October and so on.

You must have a set of accounts which then have to be copied and sent online to Companies House in the format that they require.

With a Limited Company you are regarded as an employee of it even if it bears your name.

You will need to confirm with your Accountant how you should pay yourself and how you deal with profits – dividends. 

Only have an Accountant who is sensible – not one that tempts you with excessive tax breaks – better to pay more tax in the long run as you are the one who will be held accountable by the Tax Man and not them. 

Cheers

Andy   

You have more legal protection as a limited company and I would certainly recommend going down that route.  Being VAT registered on a flat rate scheme can also be an advantage as you pay less VAT than you would normally but the rules on that have changed recently so you would need to check up on the HMRC website. 

You do need an accountant who specialises in micro-businesses, my first accountant had dilusions of grandeur and cost me loads of money, my second account saved me twice as much money as I had to pay him each year.   The difference was that the second one understood micro-business and helped me to plan my tax affairs much better. 

Many big companies only want to deal with Limited companies because of the liability question.   If anything goes wrong and you are a sole trader even with good insurance you can end up with a very big personal bill which could put you into personal bankruptcy.  I recommend £3million minimum on Public Liability and the same for Professional Indemnity,   brokers will recommend a figure based on your annual turnover but that is likely to leave you underinsured.  Being a limited company cushions you as an individual from those sorts of issues.  Make sure you have a second signatory or second nominated director who can take over essential paperwork if you are out of action.   None of us know what might happen to us especially if driving so you need that back up of having a second person who can pay your VAT bill.   A power of attourney is also a good move if you are the sole director of a company.  

Your expanding, gaining more business and you intend to register?????

Your supposed to register and then work not the other way round.

Whats your business plan? make a £million and then tell HMRC, if you dont then not bother lol 

Originally Posted by: Bigmac1

Your expanding, gaining more business and you intend to register?????

Your supposed to register and then work not the other way round.

Whats your business plan? make a £million and then tell HMRC, if you dont then not bother lol 

I think you've got the wrong end of the stick - SBH is talking about the decision to stay as a sole trader or go Limited - both are completely normal and legit.

I'd recommend talking to an accountant - there does come a point where tax savings of being Limited offset any accountant's cost, they'll be able to let you know if you've hit that point. I went Limited a while back - it's a bit different from being a sole trader, but not too complicated. It also adds a bit more "legitimacy" to some clients who may be used to dealing with larger companies and you would stand out as a sole trader.