New to contracting? Don’t want to work through an agency? Then working through your own limited company may be the option for you. The government is praising the self-employed more than ever, making now a better time than any to start up your one-man business. Limited company contractors are completely in charge of their trade, all you have to do is take the first steps to becoming one:-
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-Pick a name!
Not just any name, and nothing too specific either. If you directly relate the name to your trade then you run the risk of limiting yourself. Many businesses expand and move in different directions in their first year of business. So make it original, catchy, and keep an open mind.
-Memorandum of Association
This bit probably isn’t so fun, but is very necessary. This term refers to a documentation that will explain why you have set up your company and how you plan to operate it. This document is essential to legal matters and other important issues. Clueless? You may want to consider working with a company formation specialist if so. They will talk you through possible tax concerns and legal jargon and structure the document accordingly.
-Get a company bank account
Using your existing account will just get complicated. However, it is advisable that you open a new account at a branch where you already have an account. This will help with referrals and will hopefully make the process a bit shorter.
-Get a good Accountant
….if you don’t have one already that is. An accountant can help you budget during the crucial first few months of business, and let you get on with the more important stuff, like making money! A good accountant should provide you with information concerning everything from tax registration to payroll.
-Let the HMRC know
VAT registration is much simpler when done online. Although much of this may be handled by your accountant, familiarise yourself with online VAT registration in order to avoid delays