Self employed, Pro/cons of reg as Ltd company

[PrenticeBoyofDerry]

After being made redundant, I am now thinking of setting up on my own.
Is there any benefits in regeristing as Ltd company? it's only £20.
But are there really any benefits in doing this?
Pros and Cons if anyone has had good/bad experiences.

 

[onlyfitidealboilers]

Go LTD an you wont get credit anywhere. id think again about going self employed

 

[PrenticeBoyofDerry]

Why think again about going self employed?
I got made redundant a month ago, I have applied for around 30 jobs since then, all vacancies that I more than match the criteria of which the job description is asking.
Not one proper reply, a few automated ones, fair another some of the closing dates for application have not yet expired, but I ain't holding my breathe!
I am a qualified electrician and also have skills in plastering, rendering, dry-lining and tape jointing systems.
I have a knowledged in plumbing and some minor qualifications in that. Fitting bathrooms, kitchens and tiling is not a problem. I have had involvement in many house renovations.
I also have a vast knowledge and experience in the pre-casting concreting industry.
I have not stopped working since I was made redundant and I currently have four jobs on the go at the moment, I picked up another three jobs yesterday one for kitchen and bathroom installer and another with a property renovation and letting outfit, so that could lead to a bit more, and I have not even advertised or promoted myself in anyway since being made redundant.
The logical step would be to set up myself, I have to declare all my earnings, as this sum will be taken from my notice money that I am due to receive in a couple of month.
It's no brainer!
The thing is are there any benefits to going Ltd, I am aware that a lot credit accounts are limited to a value of around £500 and contracts are also made, waiving the condition that your personal assets can not be touched, so is it worth doing?

 

[moggridgeplumbing]

Going self employed, start off Sole Trader, and keep your overheads low as you can. Be a scrooge. You may find SE is not for you, and you go back to being employed. Doing your own accounts is simple at first, and for all the start up costs you may make, can be claimed against in your tax return. Most likely you won't be paying tax for a while.

 

[PrenticeBoyofDerry]

Most likely you won't be paying tax for a while.

That sound more like it!
Keeping cost down
Well I will be using the spare room as an office and I have a garage to use as storage.
Most of the material I use will really be supplied as demand, so don't really need a lot of stock, except for the odds and s0ds.
I have most of the tools, might need to re-new some trowels, due to wear and tear and chop saw blade.
I'm ready to go, do need a van though! working out the back of the car is not particulary practical.

 

[cumbriahandyman]

Most likely you won't be paying tax for a while.

That sound more like it!
Keeping cost down
Well I will be using the spare room as an office and I have a garage to use as storage.
Most of the material I use will really be supplied as demand, so don't really need a lot of stock, except for the odds and s0ds.
I have most of the tools, might need to re-new some trowels, due to wear and tear and chop saw blade.
I'm ready to go, do need a van though! working out the back of the car is not particulary practical.

You might find it really difficult/costly to get public liability insurance.

 

[moggridgeplumbing]

Don't forget to take out 'Public Liability Insurance' though!

When I started I did work out of an old car, and I advertised in local newsagent, and did leaflet drops. Cheap as chips but it worked, and gave me the break I needed.

P.S. Still use back bedroom as my office, and I now employ a couple of engineers.

 

[PrenticeBoyofDerry]

I have had some quotes for both public liability and professional indemnities,
they have ranged between £750 to £290 the lesser amount is a special offer for new start ups. This also covers commercial and industrial PAT
I have done a little research and if I to use the back bedroom as an office, sound like I will get away with paying business rates.
I have been considering getting some cards printed and some leaflets, I have a pal in the printing trade and he will run me off some cards and leaflets for letting him have some karndean flooring I have left over from a job at home, for his bathroom.

 

[cumbriahandyman]

I have had some quotes for both public liability and professional indemnities,
they have ranged between £750 to £290 the lesser amount is a special offer for new start ups. This also covers commercial and industrial PAT
I have done a little research and if I to use the back bedroom as an office, sound like I will get away with paying business rates.
I have been considering getting some cards printed and some leaflets, I have a pal in the printing trade and he will run me off some cards and leaflets for letting him have some karndean flooring I have left over from a job at home, for his bathroom.

I take these quotes are for electrical work only, what about all the other jobs you might take on?

 

[1john]

I'm a sole trader and we seem to do similar work mate, the reason that I went as a sole trader is that you are more determined to make money rather than let a company fail, it motivates me that I could lose something if I fail, that being said, the only money I owe is on a £37k mortgage.

 

[londonboy]

Search google for trade direct insurance, mine was around £100 including £1000 of tool cover.
(I don't have or need indemnity insurance though).

Ill be interested to see the replies regarding LTD, as I am also considering it at the moment.

 

[fattony]

go LTD in my opinion.

I was made redundant last July, fortunately already had a LTD set up, we did get trade accounts and you can pay yourself salary and dividends to keep tax down.

Someone told me in the first year of self employment you pay half of year 2 tax up front (tax bill at end of year 1) not certain if this is true.

Ltd looks more professional, and limits your liability if you have trade accounts. Consider VAT registration as well, its only worth not registering for VAT if you work with non vat registered people, you obviously claim it back on diesel, materials etc

You can lump profit into a pension before corporation tax is calculated

Just my thoughts

 

[WoodYouLike]

Go LTD an you wont get credit anywhere. id think again about going self employed

Now, I would be very interested in hearing why a LTD can't get any credit anywhere?????

 

[WoodYouLike]

Consider VAT registration as well, its only worth not registering for VAT if you work with non vat registered people, you obviously claim it back on diesel, materials etc

Once you reach the VAT threshold you have no other choice than to register for VAT - don't forget that.

 

[1john]

If you dont have to go VAT registered then don't, you immediatly become 20% more expensive than anyone else.