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dannycool
14-11-2009, 02:06 PM
I have recently been made redundent and in the current climate i am thinking i am not going to find myself any decent.
I am therefore thinking the only way i am going to get work is to go subcontracting.
The problem is i wouldnt know where to start as regards to tax, insurance, Limited or sole trader, VAT etc etc.

Can anyone give me some advice on the above issues?

Thanks in advance
Danny

ptsac
14-11-2009, 02:53 PM
If you are considering sub contracting then you should seek the advice of an accountant. As a sole trader any profit you make is liable for income tax and National insurance, If you decide to go limited you can be a bit more creative regarding minimum salary and dividends etc. Corporation tax however still needs to be paid. It is a useful exercise to sit down and write a business plan, just to work out your expected level of work, your costs of running a vehicle, including insurance,repairs,tyres and fuel. How much holiday you expect to take, the possibility of being sick etc. Be realistic. This exercise will give you a good indicator as to whether your charge rate is correct or not. Registering for vat can be worthwhile especially if buying a van or tools, and if you are likely to be purchasing materials.
Also you will be required to register as a company for F gas compliance as a sub contractor.
I haven't regretted going on my own, but some discipline is required.
Best of luck

Clk320_Greg
14-11-2009, 07:11 PM
Phone you local accountants, most will see you for your first hours for free, then go from there. Ive recently just gona from ST to LTD and TBH i would reccomend hanging on as ST for a while as its less paperwork and less dealings with the tax office - thus less potential for fines ETC.

If you want to chat about it drop me a PM and we can chat, Im no expert but its still very fresh in my mind!