Basically, you must use your skills, experience and judgement to make the company a success.
You are responsible for filing returns to Companies House and checking that your tax, VAT and national insurance contributions are recorded, prepared and paid to HMRC on time.
Don’t worry, your dedicated Danbro team will help with all these things.
As a director and employee the company can pay you a salary. As a shareholder you can also be paid a dividend. You decide how much you take unless your contract income falls within IR35, in which case you follow HMRC’s ‘deemed salary’ calculation.
Again, your personal accountant will help ensure you maximise your tax efficiency and get the most out of the work you do.
Any money you make belongs to the company not you so, yes, you do need a company bank account for which you will have full control.
Our recommended company bank account is Cashplus Business, the low cost alternative to high street business banking. We can help set you up. Or, of course, you can choose your own bank entirely.
Most people use their home address. However, if you don’t want your private address made public and don’t want important correspondence overlooked, as your accountants, you can use ours.
By law you must display the registered address on all company documents, including invoices and your website, if appropriate.
When you are operating your own business, you will need to consider whether you need, or are indeed required, to take out any business insurances such as professional indemnity, public liability, employer liability or business equipment cover.
You should review your new contract as this may stipulate a minimum level of insurance cover required to fulfil the contract. If you would like to include this protection for your business in your accountancy service please contact us on 01253 600 140 for more information.
Operating your own limited company allows you the opportunity for tax planning to minimise the amount of tax you have to pay, and your personal Danbro accountant will discuss all these opportunities with you.
As a general rule of thumb, you could expect to take home between 75-80% of your contract income.
Both options offer their own advantages depending on your circumstances and requirements.
If you are uncertain as to which option is best for you please contact one our specialist business consultants. As Danbro provide both limited company services and an Employment Business solutions, you can be assured that you will be given unbiased advice as to which option is best for you.