GeorgePrice started this topic @ 11:45 on 04/09/2006
Can you be employed in a full time job and start up and trade as a Ltd company at the same time?
If you can what implications are there?
Cheers
RE: Full time job and starting a ltd company
BrettUK | 04/09/2006 12:15 PM
In short to your answer yes you can. The implications are in relation to TAX and nothing else. You can work a 9-5 and work your own ltd company at the same time. I know this because it is what I did when I first started. I do have a question for you will you be taking a Salary from your new Ltd company as well as your 9-5? if so speak with an accountant as I am not qualified nor will I attempt to give anyone tax advise. If you are not taking a salary then keep taking money from your 9-5 and build up your new business until such time comes where you no longer need the 9-5 and the new business starts to pay you a salary.
I would reccomend using an accountant from the start as it will make things easier and more tax efficient with the new business.
Hope this helps
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RE: RE: Full time job and starting a ltd company
James Smith | 04/09/2006 01:06 PM
As Brett says, yes you can do this and as I think Brett alludes to you wouldn’t normally pay a salary from the company to yourself as this will costs a lot of ££££ in unnecessary taxes.
It’s more a case of should you do it in this way?
If you have a full time job it sounds as if this may be quite a small project and it may be better to start as a sole trader which can be incorporated at a later date.
It really depends on what you are doing and your longer term plans what would be a suitable structure for you.
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: Full time job and starting a ltd company
GeorgePrice | 04/09/2006 02:42 PM
Thanks guys, I hadn't even considered the paying the salary it was more of the case of getting a company off the ground. Brilliant thats all very helpful.
RE: RE: Full time job and starting a ltd company
assaf | 05/09/2006 11:03 AM
In addition to Brett, it might be better to take dividand than to have a salary. Again, check what option is better with your accountant.
Good luck
Assaf
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RE: RE: Full time job and starting a ltd company
BrettUK | 05/09/2006 01:45 PM
In regards to Assaf's point dividends used to be a better way to go but now I think they are charges at 19% as before they where a lot lower. You could take a small salary and then take a dividend once every 3 months. But let your accountant decide the best way forward........!
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