Contracting: Limited Company - Pay & Expenses
Discussion
To set the scene:
I work as an engineering contractor and have been getting paid through a composite company setup with an umbrella corporation. I always work on the one site and have to be on site to access the network drives and software I need.
The fee's they charge for the priviledge of them doing my accounts etc is £21 a week. So in my 6 months thus far of employment, just getting paid has cost me over £500.
I have a Limited company which I am a director of along with my father. It hasnt been trading for the last year and a half but as it is costing me in annual returns etc to keep open I am thinking I will move over to using it for paying myself. It may take up some of my time, but £84-£105 per pay period is fair enough I think for an hours work at most.
The limited company is registered to my parents home address. Would I be able to claim mileage allowance/expenses for the trip to the worksite? As far as I can figure out, I dont think I am able to as it is the primary work site and the one which I have to go to to do work, but wanted to double check.
Paying myself I think I have the gist of:
Contract rate x hours worked = Gross Income
Min wage x hours worked = gross salary
Weekly salary taxed: £96.80 @ 0%, next £41.35 @ 10%, over that 22% (not paid enough to get to 40%)
National insurance = 11% of gross salary
Employers NI = 12.8% of gross salary
Gross Income - salary - Employers NI = Profit
Profit - 19% corporation tax = share dividend
Net salary + share dividend = my wadge
Would I have to change the share structure of the company to introduce different classes of shares so that one director, i.e. me, was the only one to receive a dividend?
I work as an engineering contractor and have been getting paid through a composite company setup with an umbrella corporation. I always work on the one site and have to be on site to access the network drives and software I need.
The fee's they charge for the priviledge of them doing my accounts etc is £21 a week. So in my 6 months thus far of employment, just getting paid has cost me over £500.
I have a Limited company which I am a director of along with my father. It hasnt been trading for the last year and a half but as it is costing me in annual returns etc to keep open I am thinking I will move over to using it for paying myself. It may take up some of my time, but £84-£105 per pay period is fair enough I think for an hours work at most.
The limited company is registered to my parents home address. Would I be able to claim mileage allowance/expenses for the trip to the worksite? As far as I can figure out, I dont think I am able to as it is the primary work site and the one which I have to go to to do work, but wanted to double check.
Paying myself I think I have the gist of:
Contract rate x hours worked = Gross Income
Min wage x hours worked = gross salary
Weekly salary taxed: £96.80 @ 0%, next £41.35 @ 10%, over that 22% (not paid enough to get to 40%)
National insurance = 11% of gross salary
Employers NI = 12.8% of gross salary
Gross Income - salary - Employers NI = Profit
Profit - 19% corporation tax = share dividend
Net salary + share dividend = my wadge
Would I have to change the share structure of the company to introduce different classes of shares so that one director, i.e. me, was the only one to receive a dividend?
I'm in Farnborough Hants.
Emicen - producing limited company accounts that comply with all the statutory and accounting requirements and being aware of all the pitfalls associated with the taxation of directors/shareholders and their companies, is, in my opinion, just too complicated and technical for non-specialists to cope with.
I wasn't suggesting myself but really just putting you in the picture that running a limited company involves a lot more than just running the business and putting together a "simple" set of accounts at the year end.
Emicen - producing limited company accounts that comply with all the statutory and accounting requirements and being aware of all the pitfalls associated with the taxation of directors/shareholders and their companies, is, in my opinion, just too complicated and technical for non-specialists to cope with.
I wasn't suggesting myself but really just putting you in the picture that running a limited company involves a lot more than just running the business and putting together a "simple" set of accounts at the year end.
Fair enough, I've been down as company secretary for a bit now but havent actually had to deal with anything other than writing zero's on PAYE slips, VAT returns and filing this and that when required.
My mates father's an accountant so I'll have a word with him this weekend. Hopefully advice in exchange for beer will get me saving some dosh.
My mates father's an accountant so I'll have a word with him this weekend. Hopefully advice in exchange for beer will get me saving some dosh.
Gassing Station | Business | Top of Page | What's New | My Stuff