Going from self employed to limited.

[bank]

Hey guys! I'm going from self employed to running a limited company. I've paid some money for the company to be setup and registered and I will also setup business banking once that's done. Is there anything else I need to do? For example I remember having to declare myself as self employed. Do I now need undeclare myself as self employed and register as company director? Are there any other steps I'm missing?

Also, what will happen to my assets that I used for business? For example I have £50k worth of websites, hardware, software etc. Can I just consider those to be part of my company or do I need to sell them to my company somehow?

I'm basically trying to do as much as possible myself before having to get ripped off by accountants.

Thank you!

 

[Bob]

I'm basically trying to do as much as possible myself before having to get ripped off by accountants.

Thank you!

Welcome to the forum. An interesting introduction and one clearly aimed at encouraging the helpful accountants on the forum to give you some advice for free

Best advice I can give you, bearing in mind the values stated, is to engage an accountant and pay him/her for the advice you want

 

[IGM_Computers]

You need to make yourself an employee of the company and paying yourself a salary is the easiest way to do this.

The equipment is yours so you could sell them to your company and depreciate this over time. The question would be whether your company has the capital yet to buy them from you.

 

[Mitchells Bristol]

Hello there

You will need to:

a) complete form CT41G to register the company for corporation tax;
b) consider whether you need to register a PAYE scheme to pay yourself and any other employees, deduct tax and pay over to HMRC;
c) consider whether you need to register the company for VAT, or transfer an existing VAT number to the company;
d) look into the usual requirements such as insurance and data protection;

You will need to notify HMRC that you have ceased trading as a sole trader, to cease paying class 2 NICs and also enter a cessation date on your self-assessment tax return, and relieve any overlap profits available.

The assets owned by the sole trader business will be deemed disposed of to you personally upon cessation of the sole trader business, and a balancing charge/allowance for capital allowances will arise. Alternatively you can elect for these assets to be transferred into the limited company at the tax written down value.

You should also consider whether there is a value attributed to the goodwill built up by your sole trader business, and sell this to the company, which should give you some significant tax benefits.

I would suggest you speak with an accountant sooner rather than later - many would help you out with all of the above for free in order to secure your business, and therefore you will probably not pay anything to the accountant until they produce your first year end accounts in 20 months or so. It may cost you more for them to unravel any mistakes you make in trying to accomplish all of the above yourself!!

Hope this is of some initial help.

 

[bank]

Thank you for the advice guys. Looks like it's more complicated than I thought. I'll go hunt for an accountant. Is there anyone you can recommend for an internet marketing business?

bbbbb

Sorry, I did not mean to offend anyone. It's just a figure of speech. I should rephrase myself. "I'm basically trying to do as much as possible myself in order to save on accountants"

Thanks

 

[Bob]

Hello there

You will need to:

a) complete form CT41G to register the company for corporation tax;
b) consider whether you need to register a PAYE scheme to pay yourself and any other employees, deduct tax and pay over to HMRC;
c) consider whether you need to register the company for VAT, or transfer an existing VAT number to the company;
d) look into the usual requirements such as insurance and data protection;

You will need to notify HMRC that you have ceased trading as a sole trader, to cease paying class 2 NICs and also enter a cessation date on your self-assessment tax return, and relieve any overlap profits available.

The assets owned by the sole trader business will be deemed disposed of to you personally upon cessation of the sole trader business, and a balancing charge/allowance for capital allowances will arise. Alternatively you can elect for these assets to be transferred into the limited company at the tax written down value.

You should also consider whether there is a value attributed to the goodwill built up by your sole trader business, and sell this to the company, which should give you some significant tax benefits.

I would suggest you speak with an accountant sooner rather than later - many would help you out with all of the above for free in order to secure your business, and therefore you will probably not pay anything to the accountant until they produce your first year end accounts in 20 months or so. It may cost you more for them to unravel any mistakes you make in trying to accomplish all of the above yourself!!

Hope this is of some initial help.

What can I say :|
Fortunately for the OP one of the accountants on here is prepared to advise you despite your belief that accountants are a rip-off

 

[Bob]

Thank you for the advice guys. Looks like it's more complicated than I thought. I'll go hunt for an accountant. Is there anyone you can recommend for an internet marketing business?

So maybe it's not a rip-off
I'd recommend Suzanne because she has given you a full and accurate response to your OP

 

[bank]

Once again sorry for my hyperbolic figure of speech. I was not trying to convey my frustration with accountants, especially when I've never had to deal with one. I just had an assumption that their services did were far from cheap.

 

[Bob]

Welcome to the forum bank. Hopefully you will find it very useful in the future
Seriously my first response was IMHO good advice. As taxonomy has said, one of the important issues on incorporation is the valuation of goodwill as the tax benefits of this alone may well outweigh any fees that you incur

 

[Faevilangel]

Get an account local to you, so you can sit down with the paper work with them and go through it. There will always be issues that you hadn't thought of and you will need to get it right to avoid issues later on.