Self Employed - Ltd Company startup

Mully

Hi.

I'm looking at setting up a Ltd Company with myself as the only employee, as I won't be a Sole Trader.

The thing is, I'm home from doing a spot of travelling over the last 2yrs, & was wondering what the situation is with P45s etc, as I haven't a breeze where the one I got in 05 is. Do I need this or do I just start fresh as far the Revenue are concerned ?

Thanks.

Crea

People usually run a mile from the tax man but he is the best person to talk to in relation to setting up your own company. My hubby did this and knows that his tax is spot on because they gave him (free) advice from the get go. They put him in the right direction for registering the company for tax and Vat etc.
Get the advice from the experts.

ncit9933

where do you contact the Tax man?

I have the opportunity to switch from the agency in the current company I'm in to working direct for them myself as a contractor.

What's my best options at this stage of the year i.e. do I have to pay full audit fees of about €1400 per year if I set up as a LTD company or would I be better off going as a sole trader?

What's the difference between the 2 or are there any other options?

is_that_so

Mully wrote:

Hi.

I'm looking at setting up a Ltd Company with myself as the only employee, as I won't be a Sole Trader.

The thing is, I'm home from doing a spot of travelling over the last 2yrs, & was wondering what the situation is with P45s etc, as I haven't a breeze where the one I got in 05 is. Do I need this or do I just start fresh as far the Revenue are concerned ?

Thanks.

Why do you need to be a limited company? Unless you really have to then consider starting out as a sole trader. Many smaller business start out as sole traders. Contact Revenue as they will be your new best friend and as posted will tell you everything you need to know. Excellent govt department to deal with in my book. Don't worry about tax. You won't have to worry about that till next October.

ncit9933

I don't know do I need to be a limited company or a sole trader, basically it IT contracting and it may run for a years contract, I'm looking to get the most financially out of it

nellyshark

There are also enteprise boards you can talk to to help you out.

calsatron

It really depends on how much your making out of it. If the audit fees are considerable in comparison to the money coming in then its probably not worth it. Bear in mind you'll also have intial fee's to set up the Ltd company and ongoing costs relating to filing and statutory obligations.

The main benefit is that the corporation tax rates are considerably lower than personal tax rates. However extracting the profits from a ltd company in a tax efficient manner will require specalist advice, which is another cost of course.

The cost's related to the sole trader would be considerably lower than the Ltd company, your only obligation would be a tax return. Presuming you fall under the VAT registration limits. I'm a bit out of the loop on the cost of basic accounts and a tax return these days but it I would it would definately be significantly cheaper than a Ltd company audit.

Your best bet is to work out roughly how much you reckon you'll be pulling in from the gig then sit down with an accountant and talk it through.