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

[Funkygibbons]

I have always been CIS defo going to look into this ltd company.

 

[andyh86]

Thanks

Thanks

Thanks

 

[Karl Bristol Electrician]

I have been thinking of going self employed as I would like to be my own boss; I have looked into it and it seems a little more complicated than I would have hoped. I think I may just stick at what I know best

 

[Doc Hudson]

I have been thinking of going self employed as I would like to be my own boss; I have looked into it and it seems a little more complicated than I would have hoped. I think I may just stick at what I know best

If you are not confident of all the administrative aspects that you need to do, as well as the physical work parts, then you are probably best not to go self employed. Being your own boss sounds like an easy ride, but when you are employed you may not be fully aware of the added responsibilities and duty's that a business manager has. It may be worth your while to get one of the many books about starting your own business, (some less than £10 or £15), to to either clear up the complications or the confirm you are best staying employed. The biggest question you have to address is who are your target customers, how will you attract and retain their business.

http://www.amazon.co.uk/s/ref=nb_sb_ss_c_0_26/280-9536220-7395315?url=search-alias%3Dstripbooks&field-keywords=starting%20your%20own%20business&sprefix=STARTING+YOUR+OWN+BUSINESS%2Caps%2C152

Doc H.

 

[apprentice87]

I read that;

"HMRC operates an extremely tough penalty regime for those within the CIS scheme. Contractors need to ensure that they keep not only their books and records up to date but also that they are not late in submitting returns or making payments of CIS tax deducted"

Shame the tory idiots cannot apply the "extremely tough penalty regime" to their banker friends etc....

john...

 

[Steve3948]

What the Tories that won the vote of the people with common sense to see that the others would just be far worse.

Time for the losers to get over it and understand the country is being run by the better party.

 

[Funkygibbons]

I have been thinking of going self employed as I would like to be my own boss; I have looked into it and it seems a little more complicated than I would have hoped. I think I may just stick at what I know best

 

[Funkygibbons]

I have been thinking of going self employed as I would like to be my own boss; I have looked into it and it seems a little more complicated than I would have hoped. I think I may just stick at what I know best

If you mean self-employed as not in Limited or solo trader its quite simple theres Two ways to go CIS or Umberella CIS you pay your 20% and the payroll companys margin (admin fee) what ever is left is yours don't forget its up to you to pay your NI contributions or you can be payed umberella payroll take your tax which can be different per person because you can claim expenses e.g public transport, mileage and food, after tax payroll deduct your NI Contributions as well as the company you work for NI's contributions which is a disgrace quite unfair they also take there margin (admjn fee) there's also PAYE but I havent been paid that way in a long time as companys would rather go thtough agency than offer you a contract both CIS & Umberella are very simple way to be paid my accountant takes care of my affairs alls he asked for is reciepts for work related materials and my payslips I give hom a figure for transport cost for the year and I usally have my rebate within 2 weeks.

 

[SPECIAL LOCATION]

What the Tories that won the vote of the people with common sense to see that the others would just be far worse.

Time for the losers to get over it and understand the country is being run by the better party.

Or from another perspective.....

I don't think for many years of elections any one party has had a genuine majority vote of the people of this nation........ 

In fact it is quite common for the "party in power" from whichever persuasion to be only there on the backing of a minority of those who were actually eligible to vote...

One of those quirks of our voting system....

More often than not those in power do not actually have the majority of the population behind them at all !!

Maybe it is time a more proportional system was introduced...????

now theres food for thought..! :innocent

;

 

[steptoe]

a few points here

umbrella systems,

a typical agency rip off

do NOT use an umbrella system

tory party

do NOT vote labour if you work in the private enterprise

I worked it out, if labour had got in to government I would have had to close my company and went self employed due to how their taxation system penalised the small comany.

 

[Murdoch]

Or from another perspective.....

I don't think for many years of elections any one party has had a genuine majority vote of the people of this nation........ 

In fact it is quite common for the "party in power" from whichever persuasion to be only there on the backing of a minority of those who were actually eligible to vote...

One of those quirks of our voting system....

More often than not those in power do not actually have the majority of the population behind them at all !!

Maybe it is time a more proportional system was introduced...????

now theres food for thought..! :innocent

;

The last time a single party commanded more than 50% of the voter's was .............. 1931 ..... yes 1931 so 84 years ago

 

[Evans Electric]

I read that;

"HMRC operates an extremely tough penalty regime for those within the CIS scheme. Contractors need to ensure that they keep not only their books and records up to date but also that they are not late in submitting returns or making payments of CIS tax deducted"

Shame the tory idiots cannot apply the "extremely tough penalty regime" to their banker friends etc....

john...

Don't remind me of that tortured scheme for making life even more difficult than it is.  

In the end I applied to withdraw from the scheme ...informing them that I would never employ or use a sub-contractor ever again .

 

[binky]

have to put 'zero' retun in when not using subbies, which is annoying

 

[SLIPSHOD & SLAPDASH]

have to put 'zero' retun in when not using subbies, which is annoying

And if you are  late in returning your 'zero' its a £100 fine  :C

 

[binky]

that's the annoying bit X(

 

[binky]

I worked it out, if labour had got in to government I would have had to close my company and went self employed due to how their taxation system penalised the small comany.

how did you get that then Steps?

My problem with the Tories (and last Labour government for that matter), is the 'we put more money in your pay packet' but forget to mention the additional back-door taxes, or the fact that as they aren't providing enough money to the local council to fill in pot-holes which then cost me a small fortune in suspension repiars and tyres - more than they put in my pay-packet. Then there's all these apprenticeships they are suppossed to have provided money for, s'funny I now have to pay half the training costs. TV this morning, we are investing £8billion in the NHS, no they aren't, that figure will just cost the extra needed to cope with larger ageing population. Failure to provide sufficient funds for social care ie help the elderly stuff and lots of other similar things has resulted in local hospital being clogged up with bed blockers, for which they will only get 50% of the overspend back. GPs - 10% report vacancies empty for over 1 year, 33% intend to retire in next 5 years, but Tories want 7 day a week opening, and we wonder why the doctors are peeing off to Austrailia.....Net result the working man ends up paying extra somwhere to compensate, if they can afford to. £ strong against the $, industry will now slow down again, so whre's the growth neede going to come from? I could go on, but we are stuck with this for another 5 years, so there's little point.

 

[elecman1]

Don't go into franchising!

 

[steptoe]

how did you get that then Steps?

My problem with the Tories (and last Labour government for that matter), is the 'we put more money in your pay packet' but forget to mention the additional back-door taxes, or the fact that as they aren't providing enough money to the local council to fill in pot-holes which then cost me a small fortune in suspension repiars and tyres - more than they put in my pay-packet. Then there's all these apprenticeships they are suppossed to have provided money for, s'funny I now have to pay half the training costs. TV this morning, we are investing £8billion in the NHS, no they aren't, that figure will just cost the extra needed to cope with larger ageing population. Failure to provide sufficient funds for social care ie help the elderly stuff and lots of other similar things has resulted in local hospital being clogged up with bed blockers, for which they will only get 50% of the overspend back. GPs - 10% report vacancies empty for over 1 year, 33% intend to retire in next 5 years, but Tories want 7 day a week opening, and we wonder why the doctors are peeing off to Austrailia.....Net result the working man ends up paying extra somwhere to compensate, if they can afford to. £ strong against the $, industry will now slow down again, so whre's the growth neede going to come from? I could go on, but we are stuck with this for another 5 years, so there's little point.

tbh,

Im not totally sure,

me and the wife done some sums,

I dont think it would affect people like you, but a small one band Ltd like myself with a small turnover would be getting taxed the same as a multinational,

without the ability to take it offshore,

I really couldnt have coped with the paperwork or taxation they were going to levy me with.

even though I was simply a one man band,

I would have needed an almost full-time assistant to look after all the paperwork and sort the tax out for me, + an accountant,

simply totally unaffordable.

 

[Ross Stoddart]

Great stuff

 

[Essex1]

This is brilliant I am self employed and work for agency I was CIS were agency's take the 20% and £20 admin fee the problems now are the governments are trying to replace CIS with this umberella system were payroll companys no longer allow you to trade as a solo trader they want you under there umberela system where they deduct your Tax, NI contributions, Employers NI contributions so were paying our NI payments and employers and a £20 fee to process your wage at the end of the week plus they pay you expenses when you provide petrol or public transport reciepts. Paying the company's NI contributions is totally unfair as agencys workers are only temporary working for them, you do get some agency paying CIS but they are few and far between. The best thing about going CIS is your tax return i would really like to set up a LTD company but dont know the difference between solo trader or LTD my accoutant puts me off setting eigther One up by stating its to much hassle but the way i see it all these administration charges payroll company's charge me just to pay me whats rightly mine is better in my pocket than theirs.

  

the gov arent making you use umbrella company,

its the agency

tell them to F off, you are CIS

and, if your accountant is telling you not to go Ltd then you are either making <25K a year

or you have a bad accountantant

  

How would me earning around £25k stop me going LTD because i would only earn around £25k if it was a good year. Yes your right if us tradesmen all stick together and refuse to go umberella these agencys would fold i must state i am not fully qualified as a spark as yet but i will be in 2016 so i would like to idealy set up LTD company now.

  

£25k is sort of the tipping point for it to be financially viable to go Ltd,

You can go Ltd at less than this, but you may be less profitable.

I don't think the advice hear is great. The main reason for anyone to consider going ltd is to protect yourself personally. For example. If you carried out a bad fire alarm design then being self-employed you woukd be personally liable for prosecution and the courts could go after your personal assets. With a ltd company they would gonafter the companies assets.

Any accountant worth their salt would advise against going ltd because there is a lot more 'wiggle room' if you get my drift. Ltd companies have to do RTI (Real Time Information) so they know what you are doing monthly. Expect to pay about £1500 a year for an accountant to process your books at the end of your financial year as opposed to £200 for CIS. You will also be an employee of the company so you will pay employees NIC, employers NIC and PAYE tax. This all takes time and costs money. So say to yourself is the £20 charge actually as bad as it may appear. I would say not.