Thinking of starting your own Business as a Soletrader? Electrician or Electrical co?

[steptoe]

Yep, Ltd deffo has the major advantage of disassociating you from a lot of liability, 

But, there is also a good financial incentive too,

My CIS cost me nothing, I done it myself, my Ltd costs me about £800, and that's a bit dear for my turnover tbh, but all I do is give everything to my accountant and he sorts it.

BTW, even though I am Ltd, I still do a lot of CIS work too, one builder I work for insists on it as all his other subbies use it, doesn't bother me, pays my tax bill at year end. 

 

[Essex1]

Yep, Ltd deffo has the major advantage of disassociating you from a lot of liability, 

But, there is also a good financial incentive too,

My CIS cost me nothing, I done it myself, my Ltd costs me about £800, and that's a bit dear for my turnover tbh, but all I do is give everything to my accountant and he sorts it.

BTW, even though I am Ltd, I still do a lot of CIS work too, one builder I work for insists on it as all his other subbies use it, doesn't bother me, pays my tax bill at year end.

CIS rules do not differentiate between sole trader status or ltd company. If you are carrying out any type of construction work and the company you are working for is registered for CIS then HMRC dictates that you MUST suffer CIS deductions. The company has no authority to decide whether you are CIS liable or not.

 

[steptoe]

That's incorrect,

As a Ltd if you turnover >£30k iirc you can apply to HMRC for gross payment. 

You don't seriously think Balfour beattie (for example) gets CIS deducted when they build for other companies,?????? 

 

[Andy™]

so much easier not doing any cis work...

 

[Essex1]

That's incorrect,

As a Ltd if you turnover >£30k iirc you can apply to HMRC for gross payment. 

You don't seriously think Balfour beattie (for example) gets CIS deducted when they build for other companies,??????

It is not actually that simple. It is £30k per directo/partner and you will also need to get through a compliance test which will look into your business affairs. Just because you meet the £30k turnover you have other tougher tests to pass also.

 

[steptoe]

It is not actually that simple. It is £30k per directo/partner and you will also need to get through a compliance test which will look into your business affairs. Just because you meet the £30k turnover you have other tougher tests to pass also.

I didn't say it was that simple, but it's certainly not difficult,

and you originally said you MUST be CIS deducted, which was incorrect 

 

[Essex1]

I didn't say it was that simple, but it's certainly not difficult,

and you originally said you MUST be CIS deducted, which was incorrect

Trust me it is. I turnover considerably more than £30k and I do not meet the standard for gross status.

You must declare CIS liability and only then will HMRC confirm gross status.

For instance the principal contractor will still need to submit a return to HMRC each month stating what they have paid a CIS gross status company along with the tax they have stopped which would be nil.

 

[steptoe]

I'm sorry to hear that, 

I probably don't turn over anywhere near what you do, but I meet the requirements for gross payments. :C

 

[Essex1]

No need to be sorry. We off set it against our PAYE and NIC. This way we get a nice big rebate at the end of the fy.

 

[Kennyd147]

If the answer is 'Yes', then Thanks to KME and Myself, we have put together a page as Guidance for you.

Click to visit our Business Page.

.

Could someone point me in the right direction, as this link is no longer working. Thanks 

 

[Evans Electric]

Must be because its an old thread .     Someone will know what to do .  

What do you need to know  ?     Are you starting up on your own ?  

Are you sub contracting to someone else   or employing a subbie? 

I'm sure we can give some pointers.     If you are not familiar with the dreaded CIS system  theres a few things you need to know. 

 

[Kennyd147]

Must be because its an old thread .     Someone will know what to do .  

What do you need to know  ?     Are you starting up on your own ?  

Are you sub contracting to someone else   or employing a subbie? 

I'm sure we can give some pointers.     If you are not familiar with the dreaded CIS system  theres a few things you need to know. 

Thanks for the reply.

Considering starting up on my own, I was just looking for general information/advise to have read through really.

 

[Murdoch]

Thanks for the reply.

Considering starting up on my own, I was just looking for general information/advise to have read through really.

I would suggest you start a new thread ..........this one contains old advice and details..

 

[Doc Hudson]

Welcome to the forum Kennyd147,

This thread dates back from not long after the forum was originally started. (also, there was a problem with the link not working back in 2009 if you browse some of the comments).

However since then the forum has had a change of ownership and was moved to different hosting provider, and has had the forum software updated or changed a few times along the way.

So it is quite possible some links have gone AWOL in over 10 years since the thread was opened. Sorry its not working.

There are quite a few other more recent threads by numerous members asking about various aspects of running your own business, you could try the forum search function,

or start a new topic with specific questions you are trying to resolve.  (go to the General Chat or Questions & Answers area and just start a topic on anything you want advice on). 

Doc H.

I think it best to lock this particular thread now as it is a bit dated, and it would probably encourage newer posts to be started,

which should then get better up-to-date answers about the various obligations and regulations around starting your own business