becoming limited queries.

[Davers2k]

Hi again, another bunch of questions for your consideration

When i set up my limited company do i NEED to register as an employer with HMRC immediately in order to pay myself a directors wage on a monthly basis or can i take the money as drawings in pretty much the same way i do as a sole trader now ?

also as a chauffeur sole trader now my petrol is purchased on a personal credit card and paid for out of my turnover ( as i get cash back on the credit card) and i have financed my car through personal HP (with a couple of years left still to pay) - how would i incorporate these expenses into the business ? would there be anything specific i have to do to for the company to take ownership of the car ( would it even need to ?) and regarding petrol purchases could i continue with a personal credit card paid for out of the business turnover ?

again thanks in advance - i do plan to get proper advise from an accountant before i take the plunge but i keep on coming up with new questions in my head lol

 

[Davers2k]

Oh and one more question - are the online form a limited company websites kosher and worth using ?

 

[Scalloway]

You can either take money from your limited company as wages or dividend, just taking money out as you feel like it causes tax complications. If your company has profit available you can declare a dividend but only withdraw it as you need it.

If you already own your vehicle the simplest way to deal with it is to claim 45p per business mile.

I have very little experience of online form a limited company websites but I believe some of them may tie you in to deals that you may not want.

 

[Davers2k]

surely claiming 45 pence per mile wont work with a chauffeur car - its the most integral part of the business. Its licensed and insured the same as a private hire car and its used purely for business (and by others drivers occasionally)

 

[Scalloway]

You can only get the limited company to pay for the car if the limited company owns it. This is one for your accountant I would think.

 

[TODonnell]

We form limited companies (see my signature, below).

I think you should keep matters as simple as possible until you're sure you've got a viable business. You have to submit annual returns and they can be a chore. But I guess you need a Ltd co. to reduce personal liability, as you're in the taxi biz?