Starting New Company

[Emm Eff]

I've kicked off discussion in a previous thread, but I thought it might be best to start a new thread in this particular section of the forum.

I currently work offshore, and therefore have 7 months per year at home that I intend to use to kick off a business without sacrificing my regular job straight away.

OK, here's what I want to do:

• Start a limited company, and leave it dormant for a spell until I get round to "trading".
• Work via an agency on and off to build up some capital. I will work "limited company" with them.
• Once I have some capital, I'll start advertising for domestic work/contracts.
• Basically I will then see how work progresses, and hopefully quit my regular job to work for myself.

Questions:

• Is it just as simple as registering the company and leaving it dormant? If it's dormant, I won't have any hassles from tax man if I'm not trading?
• Do I really need a business bank account if I'm just working through employment agencies initially? What benefit would a business account provide in this instance, if any?
• What insurance cover do i require?
• Does using my home address as business address have any impact on anything?

If anyone could provide a link to reputable companies I could use for company registration and insurance, I'd appreciate it.

TIA

 

[Nursecall Bits]

you can register a new limited company at any time without activating it, but once activated you must keep trading records for the whole year. you will need a business bank account because a limited company is an entity in its own right. if you use your own bank account you may have problems proving to the taxman what is income from your job that is already taxed and what is taxable via the new company. talk to your accountant before taking the plunge. once in it could be messy getting out again.

 

[Emm Eff]

you can register a new limited company at any time without activating it, but once activated you must keep trading records for the whole year. you will need a business bank account because a limited company is an entity in its own right. if you use your own bank account you may have problems proving to the taxman what is income from your job that is already taxed and what is taxable via the new company. talk to your accountant before taking the plunge. once in it could be messy getting out again.

Thanks,

If I was dormant and then decided to start trading, is the "activation" process simple? By this I mean, if I decide to take an agency assignment would it be easy enough to get the activation sorted for the first wage to be processed?

 

[grantr37]

Heres a good disclaimer to put on here before anybody tries to sue due to their own personal or business misfortune (as worldwide readers see this and the Law can be varied and Unusual) in case they try to blame (claim against) anybody posting or this forum in general....which some unscrupulous people would all too happily do and the laws in their countries would allow them to chase/pursue across international borders...

1) I accept no Liability for any Tax or Business or other financial or personal or business issues whatsoever that arise (or are assumed or deemed to have arisen from) me giving my opinion on here(This website Electricians Forums dot co dot uk website) this based on my understanding of what I would personally do with the allocation of Bank accounts for the purposes of paying Taxes Due in a timely and correct fashion to the relevant Tax Authorities and departments in the United Kingdom.

2)My opinions as placed on this internet Forum post are just that (mere opinions) with no asertion of Fact or legal standing.

3) This post and the suggestions placed on it are soley(only) intended for those Domiciled in and Resident of the United Kindom.

4) This post is offered as an Opinion relating to the formation and organisation of a small business entity in the United Kingdom and in relation to Business funds handling with repect to the settlement of Taxes due to HMRC (United Kingdom Tax Authority) only.

5) Readers of this post and any connected comments or re-posting of this text in full or in part who are resident in other countries, states and/or territories should consult (Ask) their local Tax Authorities and (or) the relevant Governmental departments relating to any Tax queries or the settlement (payment) of any Monies (amounts of payment) due to be paid.

6) you should always consult a local (in your own place of residence or work/trade) Qualified and /or Registered Accountant or Qualified independant Financial advisor before making any descisions pertinent to (in connection with) the allocation of or payment of Taxes and Duties, many Banks have advisors that may be able to assist you with regards to the correct Financial solutions and/or Bank accounts to set up in order to expediately(quickly and efficiently) pay your TAX bills to the (your) Government.

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8)This post is an opinion SPECIFICALLY for readers who are permanent Residents of the United Kingdom and whos place of business and trading is soley within the borders of the United Kingdom with a TAX domicile status as UK resident for Taxation purposes as required by the UK Government.

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10)This post is intended as general non professional opinion submitted through and as a gesture of goodwill to the enquirer(s)

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[grantr37]

If somebody else (anywhere in the world) messes up their tax and/or other legal matters I would not want to see them be able to point the finger of blame at this website or any poster on it by saying or stating "it said that there- I blame them for bad advice, I want to sue them" just think of all the different laws out there that may seem unusual to us here in the UK but can quite easily be used against any of us as seen before when people have typed messages online (even when they thought such messages were private between two individuals or a group of people assumed to be closed in nature) and somebody else has taken to be fact when it indeed was not fact and never even suggested or purported otherwise, but was merely an OPINION.

 

[Emm Eff]

That's a fair bit over the top there, Grant. I'm simply asking for advice from people that have already done what I'm thinking of doing. I can't think that a law exists that would allow someone to sue citing the reason "I read it on an internet forum"!!!

I mean seriously, has this ever happened in the past?

 

[grantr37]

LOL I thought I would put that on here to make a point that there have been occasions in the past where people have read a website post (normally in the old us of a) and ended up suing for supposed "bad advice" and actually won....even though the post was not intended for them their legal teams jumped through the hoops and pursued every avenue and possible line of blame, and where theres a blame theres a claim as they say LOL......just like when somebody complains on a forum and names names, then they get sued...etc

 

[thekingiam]

what like me saying loseleys ice cream got rid of half there british staff and replaced them with forigners who couldnt understand english so basicly couldnt understand the hygiene rules,often sneezed on choc ices or into hands then touched produce.

 

[thekingiam]

i thought people could only sue if you spoke untruths about them?

 

[bugsy]

I've kicked off discussion in a previous thread, but I thought it might be best to start a new thread in this particular section of the forum.

I currently work offshore, and therefore have 7 months per year at home that I intend to use to kick off a business without sacrificing my regular job straight away.

OK, here's what I want to do:

• Start a limited company, and leave it dormant for a spell until I get round to "trading".
• Work via an agency on and off to build up some capital. I will work "limited company" with them.
• Once I have some capital, I'll start advertising for domestic work/contracts.
• Basically I will then see how work progresses, and hopefully quit my regular job to work for myself.

Questions:

• Is it just as simple as registering the company and leaving it dormant? If it's dormant, I won't have any hassles from tax man if I'm not trading? No
• Do I really need a business bank account if I'm just working through employment agencies initially? What benefit would a business account provide in this instance, if any? You will need a buisness account
• What insurance cover do i require? At the very least public liability
• Does using my home address as business address have any impact on anything?
• Not really, not unless you run into trouble , then you will have people knocking on your door

If anyone could provide a link to reputable companies I could use for company registration and insurance, I'd appreciate it.Companies House website, google p/l ins.

TIA

You can always use a mailing address

 

[Emm Eff]

Bugsy, thanks for the advice.

Grant, I'm sorry but I find your suggestion regarding being sued completely and utterly ridiculous. In fact, I've trawled Google and can't find one single example of this. I enjoy playing online poker. There are countless websites and forums I use that give advice on how to play particular hands in particular situations.

Maybe I should call my solicitor next time I get a bad beat?

Seriously 'though, you shouldn't be putting people off from offering friendly and helpful advice, based on ridiculous legal scaremongering.

 

[grantr37]

just wait until somebody tries to sue you for advice on an online game or something, they can legally instigate proceedings, people have been sued over imaginery characters and gaming currency/points/tokens before in the USA ,Germany and Japan, but most of the time they are unsucesssful with these types of cases, however advising on taxes is a whole different matter, if it had nothing to do with the poster/writer/author, it can still be pushed towards blaming them if there is a belief that they will lose and the plaintiff will win the case....

Being sued over an online game - most of the time I would imagine that this would be thrown out, unless they could prove that the other person(s) gained from it somehow...

Being sued over supposed "tax advice" well you ask any lawyer and they will tell you that it can happen...