Good news and bad news this week, as Companies House released their monthly report for October 2011 (PDF) and revealed that the number of company incorporations has jumped around 14.6% from the same period last year. For the first week of October the number of companies formed was up a full 20% year-on-year.
When it comes time to form a Limited Company, undoubtedly the biggest hurdle will be choosing a Company name. Company names are like URLs – they have to be unique – and with over 1,000 companies formed every day in the UK, the number of available company names is decreasing rapidly.
If you decide to form a Limited Company, your next question will probably be “How do I do that?” Many people imagine that forming a Limited Company is an exercise in endless bureaucracy, involving mountains of paperwork and astronomical costs. This couldn’t be further from the truth. According to Companies House 362,000 companies were incorporated in the financial year 2009/10 – over 1,000 every day day!
Jon Norris | Guides,Legal,Money
It’s the freelancer’s perennial quandary – should I stay as a sole trader, or form my own Limited Company? There are advantages of both, but also some drawbacks to be aware of. Remember every situation is different – some people may choose to go Limited for the added weight it puts behind their company name, some people may choose not to incorporate to as they don’t earn enough to take advantage of the added tax efficiency.
As we reported on Friday, new government legislation regarding the use of offshore Employee Benefit Trusts (EBTs) by Umbrella Companies as a means of saving clients money will now be passed into law, meaning the money-saving benefits of this method will be removed come April next year.
Freelancing has many advantages including the flexibility to decide when and where you work.
You will also have a wider variation of work with a number of contracts and clients as well as usually being paid higher rates of pay.
However, there can also be disadvantages, especially as you are responsible for all aspects of your business including finances, sourcing work and compliance with relevant regulations such as IR35.
Michael Rose | Getting a Job,Money
Continuing our Freelance Stories series we talk to artworker and print production pro Bill Greenwood.
After 20-years working for top design studios Bill has decided to go it alone and tells us what it is like to start your own Limited Company.
If you are a freelance sole-trader or a contractor working under an Umbrella company you may not be aware that going limited could save you money.
By going limited you can, save tax, open more avenues for employment, benefit from limited liability if you get into trouble.
If you have read our guide to the expenses freelancers can claim the following guide gives some in depth information on how to claim your business expenses.
What expenses can I claim?
Freelancers and contractors with limited companies can claim the following as legitimate business expenses.
Michael Rose | Getting a Job,Money
If you decide to set up your own limited company then you’ll need a business bank account to separate your personal and business finances.
It may sound like a lot of hassle but our quick guide shows you what you need to do.
Setting up a Limited Company is one of the smartest way to get paid for your work. With a Ltd you get to define your brand, own everything you do, run your business in the most tax-efficient way and pitch for work you wouldn’t be able to get as a sole-trader.
Some people, usually the folks at Umbrella companies, will tell you that setting up a company is costly and complicated but with low-cost solutions out there it’s a no-brainer.
Got a great accountant but lousy software?
Or great software but an accountant who wants everything in Excel spreadsheets?
Crunch Managing Director Darren Fell explains why choosing an all in one accounting solution can save you a lot of time and hassle when it comes to your year-end.
Darren Fell covers the correct steps to setting up your accounting system. Step 1: Find the good accountant Step 2: Make sure you like their software
Freelancing and contracting is becoming a normal work practice within our society but many people continue to work as a sole trader rather than through a limited company. Freelance Coach Daryl Close takes a look at how a limited company setup can help you
Michael Rose | Money,Resources
If you’ve read the tax overview and know what to expect this guide gives you a simple to understand guide to Self Assessment, National Insurance contributions, VAT, employing others (PAYE) as well as some of the help you can get in the form of Allowances, reliefs, incentives and Tax credits.
Essential reading if you’re starting out and struggling to understand tax and self-employment.
Michael Rose | Money,Resources
To help launch our new Resources section we’ve teamed up with Business Link and the HMRC: Over the next few months we’ll be offering the latest advice, guidance and short videos from the people who know.
If you’ve recently gone self-employed or are thinking about working for yourself this first PDF guide will give you an overview of initial questions you might be asking yourself when planning on starting a business.
Freelancers need all the advice they can get and when it comes down to leglistlation not knowing your liabilities can be a painful and costly lesson. Our new legal blogger David Gordon is an expert in giving legal support and advice for freelance, contracting and small-businesses. Six things you need to know (but might be [...]
Andy White | Getting a Job,Podcast
Andy talks to Raju Ajiz, an IT support contractor, about some of the first things you should consider before embarking on freelancing or contracting.
