Advice on new company

[booty]

Hi all

Heres a little background - I have been approached by 2 companies wanting my IT expertise as a service. I am already employed but are having talks with them, but the basic outline is:

- I start my own company, and we sign a 2 yr contract binding them and me to together for security pruposes

- As my own company, I will invoice them a set amount each month which will be my wage

- Advantage for this is neither company need me full time and neither want to invest in a full time employee for IT, so they are essentially splitting me.

- Company car mentioned, how does this affect tax?

So my real question really is, how much does it cost (approx) to start a limited company? They are paying the set up costs but I would like to know what is involved.

Is there anything I should be aware of, to cover my own back? I have known one of the MD's for a while and is a good trustworthy friend, but the sensible side of me needs to know how to spot something dodgy.

Best way to pay myself? Best meaning, "most tax efficient while still legal". I heard paying myself a small wage and collecting Dividends is quite common?

I will have the use of their accountants, but again I want to know what is being done and what is involved!

Thanks

B

 

[luvs_frogs]

Wow - I just wish I had such an oppurtunity. BIG DECISION! Good Luck - best to ya!

 

[ChrisR]

You'll probably never get a better opportunity to start your own business... If you want to start your own business, go for it, you've got two years visibility, which is enormous these days. You could even employ someone to do the job while you look for other clients, and get something bigger setup before the end of the two years.

That's if you want to set up your own business of course...

 

[LawrenceB]

That is all great, but are you going to be doing work for anyone other than these. The reason that i ask is be very careful that the business is seen as being a tax-dodge IR35 style business. You should be fine, but look into it so you don't get tripped up.