That’s entirely up to you (provided the funds are there), although we recommend that you take a reasonable level to meet your day to day needs, you should take at least a National Minimum Wage salary. Once we’ve agreed a salary with you, we’ll provide you with a monthly payslip which is easy to follow and clearly sets out how much to pay yourself on a monthly basis.

You also have the option of taking some salary as dividends, which are paid from your remaining profit.

Dividends are a distribution of your company’s profits (after tax) to the shareholders. You do not have to pay National Insurance on dividend payments and so this is a very tax efficient way of receiving income from your company.

Log any mileage throughout the month and keep any receipts for fuel and all other claimable expenses. Then detail these expenses in your monthly report. We will then advise you how much to pay yourself from your company bank account to reimburse these expenses.

You can claim back anything that is “wholly and exclusively” incurred to carry out the day to day running of your business. Examples may be business travel expenses insurance, accountancy fees, motor expenses, computer hardware and software, telephone, stationery, home office, training, etc.

The flat rate scheme is aimed at simplifying VAT. You pay VAT to HMRC as a flat rate percentage on your gross sales including normal VAT.
The flat rate percentages vary depending on your business activity. Under the flat rate scheme you can not reclaim VAT on your purchases and expenses, but you can on larger capital purchases of equipment over £2,000.

Once you enter the flat rate scheme you are free to leave at any time, but then can’t re-enter the scheme for 12 months.

Your VAT is payable to HMRC four times a year, each quarter, one month after the quarter end. We will calculate your VAT for you and advise you how much to pay and to whom. We will also submit your company VAT return to HMRC on your behalf each quarter.

A self assessment is a set of forms designed to bring together an individual’s taxable income and gains during a tax year, which runs from April 6 of one year to April 5 of the next for the purpose of calculating the correct tax liability for that specific period.

No, we do not charge by the hour. You pay a set monthly fee and this includes all services. You will know who your accountant is and be able to contact them at any time within working hours.

You have the option of making your company dormant; however you will still need to file annual accounts with Companies House. Our fees will reduce to £20 + VAT per month in order to continue assisting you with your company while you are dormant.

If you decide to be paid inside IR35 you can still:
1. Claim travelling and accommodation expenses when working away from home
2. Benefit from the VAT Flat Rate Scheme which on an average contract will save you around £2000 a year
3. Receive interest on the funds held within your own company.
So yes, from a financial point of view it still could be worth it. Also any other contract work you do can be put through your limited company.

This depends on when you submit all the relevant reports to us. We will ensure they are prepared in time for all deadlines and give you plenty of notification of any Corporation Tax liabilities to pay.

IR35 dictates the way tax is paid through a limited company. If you work outside of IR35 you can dictate a level of salary. The remaining monies will be either classed as profit or expenses. Once tax is paid on the profit the shareholders can withdraw dividends. This is more tax efficient than working inside IR35 however we strongly recommend that you seek advice from independent tax status advisors or sign up to our Simple Plus Package to benefit from the unlimited IR35 contract reviews.

If you receive advice from an independent tax status advisor that thinks you are inside IR35 and you choose to follow this advice (the decision is ultimately yours) then your salary payments under PAYE will be calculated at 95% of the income your business receives. This basically means that you will receive less money than outside IR35.