Advice on ltd company or self employed

[Reevio]

Hi guys I'm after some advice , electrician with 12 years experience I've always been employed full time by a company the time has come to cut loose and go it alone what I want is abit of advice I'm looking to do abit of my own work , agencie and sub to a couple of guys I know would it be best to go ltd company or self employed any advice much appreciated Chris

 

[Darkwood]

Welcome to the Reevio

 

[telectrix]

just go s/e for now. consider ltd. if you grow big.

 

[Octopus]

It is easier to convert from being a Sole Trader to Ltd than to go from Ltd to Sole Trader.

Sole Trader while you build the business up, and my accountant has advised me that you need about £40K profit to make going Ltd worthwhile due to the changes in the last budget.

 

[Reevio]

just go s/e for now. consider ltd. if you grow big.

But where do I stand with getting paid via agencies etc I'm unsure on how it all works

 

[Octopus]

But where do I stand with getting paid via agencies etc I'm unsure on how it all works

I would advise you to find a local accountant, most will give you the first hour free and get some proper, local advice

 

[plugsandsparks]

It is easier to convert from being a Sole Trader to Ltd than to go from Ltd to Sole Trader.

Sole Trader while you build the business up, and my accountant has advised me that you need about £40K profit to make going Ltd worthwhile due to the changes in the last budget.

I think it also depends how many shareholders there are as its a 5K allowance per person.

 

[Deleted member 26818]

Agencies will not pay you direct unless you have a Ltd Co.
You would be paid via a payroll Co. which will charge a fee (about £18) each time you are paid.
Also many agencies will only pay you as PAYE, unless you have a Ltd Co.

 

[lennox]

If your thinking about working for agency then with being a limited company you avoid the national insurance charge that they slap you with when they pay you. So they take your 20% tax usually £20 to pay you and then x amount national insurance per week!

Bad side of going limited is if your looking for a mortgage, the brokers look at how much you personally take from the company and not how much the company has earned so generally get offered a smaller amount,just going through this situation myself so just a heads up if this applys to you!

 

[Reevio]

Thanks for all the replies guys , I'm considering going self employed in January, I've got abit of a rainy day fund to see me through until I build up and find some decent clients .