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  1. #1
    Join Date
    Apr 2005
    Location
    Bournemouth, UK
    Posts
    5

    UK Company - how to?

    I have been doing webdesign and hosting for a year or so now - but now I feel I should setup everything properly i.e. a proper company.


    Does anyone have any tips for the best way to do this - I have looked at LTD companies but as there is no risk on my part to setup this company (only my time) is a ltd company neccesary?

    Any advise would be a appreciated.

    Thanks
    Toby

  2. #2
    Join Date
    Dec 2003
    Location
    UK
    Posts
    652
    If you've been doing it for a year and taking payment during this time, then I'd suggest talking to an accountant as you'll have to account for this work on either your company accounts or on your tax return

    A google search will find many company registration agents where you can easily and cheaply setup a Ltd company. You need to register with the Inland Revenue and possibly Customs & Excise (VAT)

    A Ltd co is usually the best option to go as this makes your company a legal entity and removes your personal risk (unless you act improperly as a director).

    You'd be best off seeking advise from an accountant of other suitably qualified business agent rather than on a public forum though.

  3. #3
    Join Date
    Apr 2005
    Location
    Bournemouth, UK
    Posts
    5
    Thanks Alex - I'll get some legal advice

  4. #4
    what it's the tax for uk? i'm looking to move my company to some country with less taxes.

  5. #5
    Join Date
    Feb 2005
    Location
    United Kingdom
    Posts
    78
    What is the typical cost of getting registered as a LTD? And at what point do you start having to pay tax and VAT and all that?
    Mark Stevens
    GHXhosting.com Ltd - Shared & Reseller Hosting
    (UK/US) Dedicated Servers & VPS
    Server-Help.co.uk Experienced Linux server admin for hire

  6. #6
    Join Date
    Dec 2003
    Location
    UK
    Posts
    652
    You should get a Ltd co setup for less than 100.

    Tax depends on how you work things, basically you pay tax on your profits. VAT is currently just under 50K turnover although there are many potential benefits of registering anyway.

    Seek advise from an accountant or business adviser rather than a public forum though

  7. #7
    Join Date
    Apr 2005
    Location
    Bournemouth, UK
    Posts
    5
    Just Been looking on google....

    ukplc.com offer ltd companies from 34.99 - may be worth checking out -

    but I think Alex is right - that you definately need to get legal advice first!

  8. #8
    Join Date
    Aug 2000
    Location
    Sheffield, South Yorks
    Posts
    3,480

    Re: UK Company - how to?

    Originally posted by digitalmischief
    ...but as there is no risk on my part to setup this company (only my time) is a ltd company neccesary?
    I really really hope you don't believe that statement, I don't mean to be harsh, but it is one of the first things you'd learn on a business course and in the real world - There is no such thing as a risk free company, what if a client sues because the site you built lost them a major sale? No such thing as no risk, like there's no such thing as your target market being "everyone" etc.

    First thing I'd do, is talk to your local business advice centre - You'll have one, every area does, they'll tell you everything you need to know about tax, accounts etc. etc.
    Karl Austin :: KDA Web Services Ltd.
    UK Business Hosting and Managed Servers - Hosting for Business Users :: 0800 5429 764
    Call us today and ask about our hosting solutions.

  9. #9
    Join Date
    Apr 2005
    Location
    Bournemouth, UK
    Posts
    5
    Good point .....LTD Co. it has to be!

    Toby

  10. #10
    Join Date
    Sep 2004
    Posts
    311
    Tax laws in the UK are currently:

    If annual profit is more than 4770 (I think its around that) then you pay tax. If not, then you must still file for tax but you just won't get taxed on them.

    VAT is if annual profit reaches 58 000 then you must file for VAT with Customs & Excise, anywhere below that figure is optional.

  11. #11
    Join Date
    Aug 2000
    Location
    Sheffield, South Yorks
    Posts
    3,480
    VAT is nothing to do with profit, it is to do with turnover. Tax depends if you are running as a sole trader or a liimited company. This is why you need to go speak to your local business advice centre etc. or an accountant - They will give you the correct information, wheras you're going to end up having to work out whose advice is right/wrong on these forums.
    Karl Austin :: KDA Web Services Ltd.
    UK Business Hosting and Managed Servers - Hosting for Business Users :: 0800 5429 764
    Call us today and ask about our hosting solutions.

  12. #12
    Join Date
    Feb 2005
    Location
    United Kingdom
    Posts
    78
    I think i'll try and find out where I can get some proper business advice locally then. Thanks for your help on here.
    Mark Stevens
    GHXhosting.com Ltd - Shared & Reseller Hosting
    (UK/US) Dedicated Servers & VPS
    Server-Help.co.uk Experienced Linux server admin for hire

  13. #13
    You may find this site very useful for information about setting up a company etc: http://www.businesslink.gov.uk/

    Although obviously, you are still likely to need to talk to an accountant/business expert - especially about how to explain the fact you've been doing work for a year and not registered as self-employed (Inland Revenue say you must register within 3 months of the end of the month you started or pay a nice fine).

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