Its a hassle and a time consumer that you don't see any return for. I will be honest I have been playing with the idea of closing the Ltd co. To be a sole trader again
You will have to register as a contractor with the Cis so you can pay subbies/employees. The contractors online account allows you to do all the payments and tax forms.
You must do them for subbies Cis every month showing all tax deductions or you will be fined 100 quid every time you are late.
If you suffer Cis deductions yourself then you will need to offset this against what you deduct from subbies otherwise you could end up with a negative cash flow. Also getting money back off the hmrc is getting increasingly difficult....they owe me 6k down from 13k going back to 2010.
You will also need to set up RTI online this means every time you pay yourself or an employee or you receive money from sales you must enter the amounts. This info shows your deductions so you can offset. Again if you don't keep up to date you will be fined 100 penalty.
My advice is stay off the vat unless you hit the threshold only then should you register. Its another quarterly form and yes you guessed it....you will be fined 100 penalty if its late.
Good luck with it all. Kiss goodbye to your spare time unless you wanna pay a hefty bookeeper fee to do it all for you
It's best to be organised,a decent accountant doesnt cost the earth, I am a sole trader,it suits me,low risk work, at most i would lose a couple of weeks money,but unlikely as I work for people I know for a long time, ltd suits people busier than I am ,the benefit of being a ltd is that if it goes belly up you loose your business if your a sole trader in your name you loose your business , your house anything that's not nailed down.
It depends on your potential punters I guess If your taking on work for developers etc you want to be vat to claim it all back if your domestic you don't want to be involved, claiming vat back on fuel is a godsend, I don't know how lads make a do paying for fuel and the vat as well, I've got 4 vehicles, two vans my navara jeep and my range rover all the fuel goes through the business I recon I do over a 100,000 mile a year across all 4 if I wasn't claiming vat back it would be a fortune.
You can be late with the vat return once but I it's late again in 24 month it's 10% of the return .
I get a book keeper to do all mine, piece of mind and only paying out a small amount for it, I do nothing but write cheques.
In an entirely different business I was a contractor with North Tyneside Council, seems different departments or councils do better than others. I was waiting up to 6 months and on one occasion even longer to get paid and we are talking up to £29000 at one point I was owed. Nearly collapsed the business that did and it certainly could not keep going like that.
For plastering it isn't too bad I assume but if they start piling a lot of work on and the balance sheet keeps mounting I'd be wary.
no ive been there subbing there 6 yrs and payments regular luckily enoughIn an entirely different business I was a contractor with North Tyneside Council, seems different departments or councils do better than others. I was waiting up to 6 months and on one occasion even longer to get paid and we are talking up to £29000 at one point I was owed. Nearly collapsed the business that did and it certainly could not keep going like that.
For plastering it isn't too bad I assume but if they start piling a lot of work on and the balance sheet keeps mounting I'd be wary.
plasterjfe is spot on..your most important thing to do first is to get a contractor status ..because you will be surprised at how fast your own income will be down after your 20% has been deducted then you have to deduct another 20% you will need good cashflow as it all adds up and if you are waiting on a good chunk of money to be paid it can make all the difference ..if you dont get the odd fine from cis i would be shocked they will not give you any second chances .. expect to spend alot of time on the phone at first untill you get used to the system ..best of luck :RpS_thumbup:Its a hassle and a time consumer that you don't see any return for. I will be honest I have been playing with the idea of closing the Ltd co. To be a sole trader again
You will have to register as a contractor with the Cis so you can pay subbies/employees. The contractors online account allows you to do all the payments and tax forms.
You must do them for subbies Cis every month showing all tax deductions or you will be fined 100 quid every time you are late.
If you suffer Cis deductions yourself then you will need to offset this against what you deduct from subbies otherwise you could end up with a negative cash flow. Also getting money back off the hmrc is getting increasingly difficult....they owe me 6k down from 13k going back to 2010.
You will also need to set up RTI online this means every time you pay yourself or an employee or you receive money from sales you must enter the amounts. This info shows your deductions so you can offset. Again if you don't keep up to date you will be fined 100 penalty.
My advice is stay off the vat unless you hit the threshold only then should you register. Its another quarterly form and yes you guessed it....you will be fined 100 penalty if its late.
Good luck with it all. Kiss goodbye to your spare time unless you wanna pay a hefty bookeeper fee to do it all for you
plasterjfe is spot on..your most important thing to do first is to get a contractor status ..because you will be surprised at how fast your own income will be down after your 20% has been deducted then you have to deduct another 20% you will need good cashflow as it all adds up and if you are waiting on a good chunk of money to be paid it can make all the difference ..if you dont get the odd fine from cis i would be shocked they will not give you any second chances .. expect to spend alot of time on the phone at first untill you get used to the system ..best of luck :RpS_thumbup:
i was warned 3 times not to keep swearing lol i could'nt help myself :RpS_cursing: as they guessed what i should pay to say i was angry was only the tip of the iceberg .. i would like to see the figures on how much they made from fines and premium rate numbers last year i bet it was a colossal amount of money
It was published somewhere in a complaint. Its millions and millions mate