Forum
Becoming a Limited Company.....or not??
SB Designer
Messages count : 1
Likes count : 0
Registration :
2 October 2007
Hey,
After a year and half working in a Creative Ad Agency based in Dubai as a Graphic Designer, I returned to the UK and I started to do some freelance work through recruitment agencies. Been freelancing for about a year now via PAYE. Am now thinking of setting up my own Limited Company. Is it worth it?? whats the best way to do it? and whats your advice??
Cheers
Sam
After a year and half working in a Creative Ad Agency based in Dubai as a Graphic Designer, I returned to the UK and I started to do some freelance work through recruitment agencies. Been freelancing for about a year now via PAYE. Am now thinking of setting up my own Limited Company. Is it worth it?? whats the best way to do it? and whats your advice??
Cheers
Sam
- Contact in PM
MickeyFinn
Messages count : 120Likes count : 0Registration : 30 October 2006Hi Sam,
Welcome to the forum :happy
Setting up Ltd depends on turnover really and whether you mind dealing with a bit of paperwork now and again. It becomes more worthwhile if you are making £20-£30k per year to go Limited. Company formation is very easy to do online and costs about £80 (look in the menu on the right of the site "Company Formations" and just fill out the forms. Very easy to set up.
A good account is also required and be prepared to pay a grand or so for their services for filing year end accounts, personal accounts and VAT returns if you become VAT registered.
Best way to take money out of the Ltd is to employ yourself as a member of staff and pay £5-10K (depends if you want to pay above minimum wage or not as some feel that below min wage leaves you open to investigation - I don't believe this and pay myself £435 per month) and then take whatever else you can as dividends throughout the year.
It is quite a big subject so have a look at the articles on the main site in case I have forgotten anything or got anything wrong!