Thinking of starting a small ltd company

[Connor72]

I work in construction for a small company, I have came across an opportunity to make some extra money by investing in some products to hire out for a long term project on the side . it wouldn't be a massive turnover possibly £1-2000 per year this could also be topped up with some other jobs through out the year. if I was to-do this as a sole trader from what I paid in tax I don't think it would be worth my time would it be possible to run a ltd company with a small turn over but low to zero profit due to spending any money in the business on things such as fuel , tools, mobile phone etc , things which I already spend my tax paid earnings on , the idea would be to change my usual spending on these things into the business to save using my tax paid earnings or paying any corporation tax
I am currently in the very early stages of this and don't have a grate deal of knowledge on the matter looking to find out if this is even feasible before I spend money getting an appointment with an accountant

 

[DWS]

You can’t claim as expenses the items you usually spend money on, you can only claim for the expenses incurred in running the business.

 

[Porky]

Also, no rules on what turnover you do in a limited company nor what profit you deliver but at sub £2k expected revenue by the time you take into account your end of year accountancy costs and filing returns, before you even look at formation costs, its probably more hassle than its worth but nothing to stop you doing it.

 

[fisicx]

Your insurance and other costs (like maintenance) will take big chunks out of your income.

 

[Connor72]

Also, no rules on what turnover you do in a limited company nor what profit you deliver but at sub £2k expected revenue by the time you take into account your end of year accountancy costs and filing returns, before you even look at formation costs, its probably more hassle than its worth but nothing to stop you doing it.

This was a consern I had thanks for your advice

 

[Connor72]

You can’t claim as expenses the items you usually spend money on, you can only claim for the expenses incurred in running the business.

I was more thinking that if I had a business I could get a business phone then would no longer require a personal phone, so it would then become an expense incurred from running the business

 

[fisicx]

I was more thinking that if I had a business I could get a business phone then would no longer require a personal phone, so it would then become an expense incurred from running the business

You can do that without forming a limited company. Your accountant will be able to advise. My accountant claims a percentage of my personal phone costs to offset corporation tax.

You don't say what sort of products you plan you offer for hire. It's not a cheap business to run - mainly because of insurance. Insurers aren't keen on covering loss, theft, damage and public liability on equipment used on building sites.

And then the are the practicalities. Suppose you rent out a generator and it breaks. How are you going to cover the contractor who had the generator booked for the following week?

 

[Connor72]

You can do that without forming a limited company. Your accountant will be able to advise. My accountant claims a percentage of my personal phone costs to offset corporation tax.

You don't say what sort of products you plan you offer for hire. It's not a cheap business to run - mainly because of insurance. Insurers aren't keen on covering loss, theft, damage and public liability on equipment used on building sites.

And then the are the practicalities. Suppose you rent out a generator and it breaks. How are you going to cover the contractor who had the generator booked for the following week?

The hire side of things is basically just fencing it's for a 3 year contract to one customer 6 months of hire would cover the full cost of the fences the hire side of things wouldn't be advertised it would just be a definite cash flow for the first 3 years

 

[Gecko001]

I always thought that construction plant hire was high risk and done only by companies that have broad shoulders and can take the occasional hit when a contractor goes bust in the middle of a contract. It is not as simple as going on site and taking their plant, including fencing and scaffolding, back. It can take ages for the plant hire company to get everything back, let alone get what they are owed.