Do You Operate as Limited Company or Self-Employed?

[n-hatton]

Hi All.

Realise this question maybe fraught with many issues\views!

However....

Been working as domestic multi-trade\handyman for 4-5 years now via limited company (the only employee) - hangover from my last years as an IT contractor. Fed-up paying my accountant £700 pa to take my highly organised accounts each year and "encrypt" them for the various tax offices etc!

My turnover isn't that much and this set-up isn't even saving me £700 in tax!

I'm not VAT registered.

Considering changing to self-employed; don't mind paying some NICs and extra tax and then keep the difference. Have no issue doing own admin which I've got totally covered\organised and have no issue completing personal returns of previous etc.

My real question is; What's involved admin wise for self-employed? Assume there must be something similar to a personal return each year? I already document all outgoings, incomings and expenses etc and therefore feel I have all that's required for completing such a return. Understand there's also setting-up monthly or quarterly NICs direct debits etc?

Does anyone do their own admin etc?

I can't do the shear amount connected with Ltd, but is self-employed closer to personal returns etc?

Any advice greatly received.


Cheers,
Neil

 

[WoodYouLike]

Other solution: submit your own well organised accounts to tax offices and company house!

 

[jono_h]

It depends how good your Accuntant is!

I give mine a folder full of receipts and a copy of my invoices and he goes away creates a set of accounts and fills in my tax return for me.
I get the folder full of receipts and a copy of my accounts back which I keep on a bookshelf for 6 years. All for the bargain price of £200 (which I gather is very good value).

In all honesty you probably could do a lot of it yourself. I'm happy to pay because;

a) I don't have to sort out my receipts (he actively enjoys this bit!)
b) I don't know the latest rules on allowances / personal useage etc.
c) I haven't a clue how to fill in a tax return
d) I feel that a tax return submitted by a trained Accountant is less likely to be flagged by HMCR as needing an extra look.

Interestingly enough I've actually been looking at going from Self-employed to Ltd. I'm always nervous that if something goes wrong all of my assets could be up for grabs, whereas a Ltd company is liable only for the values of it's shares.

 

[noseall]

a Ltd company is liable only for the values of it's shares.

There are downsides to both scenarios.

Your status as a limited company may mean your credit takes a bashing.

 

[Thermo]

there are pros and cons to both, and the tax advantages of the two are slowley being erroded away. It really does depend on your set up and how you trade. The advice from the horses mouth (Mrs T whos is an accountant) is speak to a decent accountant. They will advise you which one will best suit your purposes and be most advantageous to you in terms of tax and also the type of customers you deal with.

In terms of liability, many places wont offer credit terms without personal guarentees anyway

 

[Richard C]

If your a busy boy, a good acountant will save you at least as much as you pay him.